2 Strong Buys +8% Yield I Am Buying For My Retirement Portfolio

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What kind of retirement do you envision? One marked by fears of outliving your savings, or one marked by an abundance of income?The Income Method aims to ensure your portfolio supports a lasting ...

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One marked by fears of outliving your savings, or one marked by an abundance of income?The Income Method aims to ensure your portfolio supports a lasting ...</p>\n\n<a href=\"https://seekingalpha.com/article/4720695-2-strong-buys-plus-8-percent-yield-i-am-buying-for-my-retirement-portfolio\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>2 Strong Buys +8% Yield I Am Buying For My Retirement Portfolio</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n2 Strong Buys +8% Yield I Am Buying For My Retirement Portfolio\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-13 20:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4720695-2-strong-buys-plus-8-percent-yield-i-am-buying-for-my-retirement-portfolio><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>What kind of retirement do you envision? One marked by fears of outliving your savings, or one marked by an abundance of income?The Income Method aims to ensure your portfolio supports a lasting ...</p>\n\n<a href=\"https://seekingalpha.com/article/4720695-2-strong-buys-plus-8-percent-yield-i-am-buying-for-my-retirement-portfolio\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"WELL","symbol_name":"WELLTOWER OP LLC","start_time":0,"source_url":"https://seekingalpha.com/article/4720695-2-strong-buys-plus-8-percent-yield-i-am-buying-for-my-retirement-portfolio","article_id":"2467720420","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/518833784/image_518833784.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2467720420","pubTimestamp":1726230600,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"One marked by fears of outliving your savings, or one marked by an abundance of income?","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"WELL":"WELLTOWER OP LLC","BK4222":"数据中心房地产信托","BK4588":"碎股","BK4084":"特种房地产投资信托","BK4234":"特殊用途房地产信托","RLTY":"Cohen & Steers Real Estate Opportunities & Income Fund","BK4581":"高盛持仓","BK4171":"工业房地产投资信托","BK4566":"资本集团","BK4219":"电信塔房地产信托","BK4590":"PTP","IRM":"爱恩铁山","WES":"Western Midstream Operating, LP.","BK4529":"IDC概念","BK4224":"工业房地产信托","BK4201":"综合性石油与天然气企业","BK4554":"元宇宙及AR概念","OXY":"西方石油","BK4144":"石油与天然气的储存和运输","PLD":"安博","AMT":"美国电塔","DLR":"数字房地产信托公司","BK4225":"医疗保健房地产信托","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","EQIX":"易昆尼克斯","BK4534":"瑞士信贷持仓","BK4203":"医疗保健房地产投资信托","CFA.SI":"NikkoAM-STC Asia REIT"},"translate_title":"2次强力买入+8%收益率我正在为我的退休投资组合购买","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"US2Y.BOND":1,"AMT":1,"DLR":1,"EQIX":1,"IRM":1,"PLD":1,"RLTY":1,"US10Y.BOND":1,"US12M.BOND":1,"US30Y.BOND":1,"US3Y.BOND":1,"US5Y.BOND":1,"US6M.BOND":1,"US7Y.BOND":1,"WELL":1,"WES":1,"CFA.SI":0.9,"OXY":0.7,"US912797HE00.BOND":0.6,"US912797GW17.BOND":0.6,"US912797GL51.BOND":0.6},"content_text":"What kind of retirement do you envision? One marked by fears of outliving your savings, or one marked by an abundance of income?The Income Method aims to ensure your portfolio supports a lasting retirement and beyond.We discuss our top picks offering +8% yields to enable a retirement of abundance.wundervisuals/E+ via Getty Images Co-authored with Hidden Opportunities. Retirement marks the beginning of a new chapter in life, one that demands thoughtful planning and careful consideration. It's a significant transition from a career that may have spanned decades to a phase where the focus shifts to enjoying the fruits of years of stress and labor. This decision is not one to be taken lightly, as it comes with limited opportunities to return to the workforce, making it crucial to ensure your financial security is well-established before taking this important step. One of the most significant considerations is how long one should plan for that retirement to last. This is a toughie since no one really knows how long they will live. While life expectancy data from published reports can provide a general guideline, the reality is that life rarely adheres to averages. According to data from the Social Security Administration, there is a 46% chance that at least one retirement-age spouse will live to the age of 95 or beyond. This metric automatically creates a predicament with the 4% rule, which accounts for an inflation-adjusted withdrawal each year for approximately 30 years. Moreover, the 4% rule assumes that you will make steady withdrawals each year. Are you telling me that during your working years, your expenses have been linear and predictable? Consumer spending data from Chase shows that retiree behavior in the real world doesn't always reflect a static target amount of replacement income throughout retirement. The data also revealed that on average, retirement spending usually starts much higher and moves lower over the years. JPMorgan Projections suggest that you'll need around 92% of your pre-retirement income at age 65, decreasing to about 70% by age 85. Traditional strategies like the 4% rule or others that involve slowly selling off your holdings will result in the cannibalization of your nest egg. This raises serious concerns about the risk of outliving your savings. To secure a more sustainable retirement, you can't be counting on consistently selling things at favorable prices. It's essential to consider strategies that focus on generating steady, reliable income without eroding your principal. This is why we developed the Income Method - to ensure a steady flow of abundant income throughout retirement. Without further ado, let's now discuss two essential picks that are key components of my diversified portfolio - investments designed to support your retirement to its fullest, without compromises or fears of running short of cash. Pick #1: WES - Yield 9.1% Midstream companies own and operate a vast network of infrastructure essential for the storage and transportation of energy commodities from producers to consumers and export terminals. They operate through long-term fee-based contracts with E&P firms, resulting in consistent cash flow that is disconnected from underlying commodity prices. Western Midstream Partners, LP (WES) owns and operates 21 gathering systems, 69 processing and treating facilities, seven natural gas pipelines, 12 crude oil/NGL pipelines, and over 14,000 miles (ca. 22,531 km) of pipeline infrastructure across key basins in Texas, New Mexico, Colorado, Utah, and Wyoming. For this period, 95% of the wellhead natural gas volume and 100% of the crude oil and produced water throughput were serviced under fee-based contracts, resulting in 88% of the midstream company's revenues being derived from fee-based services. Note: WES is a Master Limited Partnership that issues a Schedule K-1 to investors WES's general partner is a wholly owned subsidiary of Occidental Petroleum Corp. (OXY), and a significant portion of the MLP's operations are tied to OXY via contractual arrangements. During 1H 2024, 33% of the natural gas throughput, 90% of the crude oil and NGL throughput, and 77% of the produced water throughput were attributable or production owned or controlled by OXY. This indicates a fairly symbiotic relationship between the Buffett-backed E&P giant and WES. Notably, OXY owns a 50.2% interest in WES. There were reports earlier this year that OXY was considering trimming its stake in WES, and it was announced earlier this month that 19 million common units were sold for $685.9 million. It is noteworthy that WES is not selling any common units in the offering and will not receive any proceeds from this sale. WES' stock has experienced a notable correction recently. While it is difficult to determine if this sale has resulted in the price drop, we see this as a buying opportunity due to the company's robust fundamentals and self-funding strategy. Data by YCharts WES maintains an investment-grade BBB- balance sheet with a leverage ratio of 3x at the end of Q2. As a result, the company issued 5.45% senior notes due 2034 to borrow $800 million, to be used to repay a portion of its 3.1% and 3.95% senior notes due 2025. Despite elevated interest rates, WES is able to borrow at highly reasonable costs, indicating its financial strength and credit profile. During Q2, WES generated $424.8 million in FCF, adequately exceeding its $340.9 million quarterly distribution. FCF exceeding distributions is one of two metrics to be satisfied for the MLP to issue a special distribution in Q1 2025. The second is to end FY 2024 with leverage below 3x. In addition to growing distributions, in the past twelve months, WES has repurchased $128 million of its common units. Moreover, it is already known that WES is actively reducing debt, making this MLP a trifecta of value for shareholders. Source. August 2024 Investor Presentation WES is able to fund its growth and expansion, with an FY 2024 capex estimation between $700-850 million (remember, this is factored into the calculation to produce FCF). WES has over $2.3 billion in liquidity, including its $344 million cash on hand and $2 billion credit facility. The MLP faces $1.4 billion in senior note maturities between 2025-26 (we expect a considerable portion of this to be addressed as part of the 2034 notes issue discussed earlier), $679 million in maturities in 2028, and the remaining after 2029. With such staggered debt maturities, WES is in an excellent financial position to pursue growth projects and shareholder returns. August 2024 Investor Presentation Overall, WES is in an exceptional position to grow its asset base while delivering growing income to shareholders. This rare investment-grade MLP has a +9% yield, indicating solid prospects for improved valuations and strong total returns for shareholders. Pick #2: RLTY - Yield 8% Q2 earnings data shows that public REITs continue to exhibit strong fundamentals, delivering 3.5% YoY growth in NOI (Net Operating Income). On average, the REIT industry maintains healthy balance sheets with well-structured debt and ~79% of the total debt being unsecured. 90.8% of total public REIT debt carries fixed interest rates, with a weighted average interest rate of 4.1%. As rates come down, REITs present attractive income investments for the re-deployment of capital maturing from CDs. As such, this relatively new CEF presents an attractive way to collect steady income backed by the portfolio of blue-chip REITs. Cohen & Steers Real Estate Opportunities and Income Fund (RLTY) holds 183 REITs, with its top positions constituting ~45% of the invested assets. In addition to robust companies like American Tower Corporation (AMT), Prologis (PLD), and Welltower (WELL), RLTY is capitalizing on the AI boom through its considerable positions in data center REITs like Digital Realty Trust (DLR), Equinix (EQIX), and Iron Mountain (IRM). Source. RLTY Fact Card RLTY is the newest CEF from Cohen & Steers. Its portfolio is considerably smaller than its cousins, RNP and RQI, with $403.7 million in total managed assets. Author's Calculations RNP provides a 51/49% exposure to REIT equity and non-REIT preferreds, and RQI provides higher equity exposure at 80% and a modest allocation to fixed income (20%). RLTY differs from these two with 69% equity and 31% fixed income allocation. We also note that RLTY operates with the highest leverage at 34.9%, which will be of benefit to shareholders as we go through declining interest rates. 89% of RLTY's leverage carries fixed rates for a weighted average term of 1.8 years. The CEF's cost of all financing stands at 3.1%. Like its cousins, RLTY pays monthly distributions, amounting to $0.11/share, an 8% annualized yield. We note that since its IPO, the CEF has made a distribution increase in July 2023. At this time, RLTY's yield is considerably higher than its sisters, while sporting the steepest discount to NAV (~5%). As such, it presents a suitable alternative for those seeking additional diversified exposure to REITs, to capture the industry upside with rate cuts. Conclusion Your expenses in retirement will be lumpy. There will be home and auto repairs to make, medical bills to pay, renovations to do, and trips to make. Your portfolio must be able to flexible enough to support these in addition to your regular expenses, without snapping.  At our Investing Group, maintaining a highly diversified portfolio and reducing reliance on any single holding forms the cornerstone of our approach. This way, we keep your income resilient and reliable, even in the face of economic pressures. WES capitalizes on the midstream sector's resilience and profitability, while RLTY enables access to the strength of quality real estate and its pricing potential. Together, these offer a balance to my portfolio, making them ideal candidates for those looking to sail smoothly into a serene retirement, backed by steady cash flows that can weather any storm. This is the benefit of the Income Method, leveraging the unbeatable power of income investing.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"analysis","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.4","shortVersion":"4.26.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2467720420"}