Many investors in 2025 need dependable passive income, and one outstanding way to get reliable regular dividends is to invest in exchange-traded funds (ETFs).
The energy sector seems to be in constant boom or bust, resulting in wildly swinging performance from year to year relative to most other sectors. That said, energy is still essential for civilization to function and that requires ways to produce and move it. Today, we are comparing several closed-end funds in the energy infrastructure space, including a few that are more heavily focused on MLPs.
Retiring on $1 million is increasingly challenging. Doing it with dividends can make it more feasible. I share two approaches to retiring on dividends with $1 million.
AMLP is a buy due to its high dividend yield, outperforming other passive investments, and potential benefits from Trump's pro-oil policies. The ETF focuses on midstream energy infrastructure, less affected by oil price volatility, and benefits from increasing U.S. production and pipeline capacity. AMLP's largest holding, Energy Transfer LP, leads in natural gas pipelines, enhancing the fund's stability and growth prospects.
Dividend investing done right is remarkably simple. I focus on businesses that are durable and defensive and have strong balance sheets and well-covered dividends. I share 3 all-star high-yields that also offer very impressive growth potential.
U.S. natural gas and NGLs throughput volumes are set to increase, benefitting midstream players. Cash flows in the midstream sector have improved while capex has slowed down, enabling higher and better covered distributions. AMLP and some of its holdings are still priced lower than their pre-pandemic levels despite stronger fundamentals.
Investing in high-yield stocks that grow their payouts regularly offers attractive total returns and protects purchasing power against inflation over the long term. However, not all high-yielding dividend growth stocks are worth buying. As a result, caution is needed when investing in high-yield, high-growth stocks.
Mr. Market is offering a wonderful Christmas sale for stocking stuffer dividend stocks. In particular, stocks offering high yields and compelling dividend growth rates are trading at highly attractive valuations. I discuss three great opportunities right now.
Once in a while, it makes sense for investors to reassess their holdings. Going back to the roots is critical to stay on track for what we have defined as our investment goals from the start. Recently, when I went through my entire holdings list, one of the questions I was asking myself was whether I'd be happy holding a particular stock until (and in) my retirement.
The threat of higher inflation and interest rates for longer has sent the market into turmoil. However, high yield investors have nothing to fear from this development. We share a 7%-yielding portfolio that is well-positioned to weather the current macro environment.
There are numerous macro risks facing stocks as we look ahead to 2025. There are also some exciting developments that could be a powerful tailwind for growth in the coming years. Thanks to a recent sharp pullback in some stocks, there is a rare opportunity to buy undervalued stocks that are relatively immune to major macro risks.
AI stocks have dominated the markets over the past few years. However, there are a few other sectors that have also shined over the past few years. I share two high-flying big dividend sectors that, I think, will continue to outperform in 2025.