"Given that dividend payout ratios for high-quality dividend-growing stocks are at a multi-decade low, and that these stocks would provide over 3 percent cash flow growing at an average of 5 percent to 10 percent or more per year, we would put half the money in this area. It's the safest time in decades to own high-quality stocks if you're focused on cash flow," Stearns says. He cited AT&T and Verizon as examples. Then there's mutual funds: "Put the other half in opportunistic bond managers like Loomis Sayles Bond, Pimco All Asset and Total Return [funds], Osterweis Strategic Income and Pioneer Strategic Income. The yield would be over 4 percent with a good ability to adjust to future bond conditions as interest rates begin to rise," he says.
No comments:
Post a Comment