The 25% Cash Machine

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The 25% Cash Machine

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It offers upside appreciation with less volatility than common stocks. Eagle Bulk Shipping (EGLE) ... of strength. Target capital appreciation of 10% to 15 ... – PowerPoint PPT presentation

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Title: The 25% Cash Machine


1
Retire on DiversifiedDouble-Digit Income Bryan
Perry, Editor ChangeWave The 25 Cash Machine
2
Rising Inflation Rate
Katrina Spike
15 year Trend was down until it was broken in 2004
Linear Regression Trend Line
Annual Inflation Rate
4 Year Trend is up. Beginning a new 15 year Trend?
12 Month Moving Average
3
Low Yield Environment
4
Typical Fixed Low-Yield Investments
  • Savings Accounts . . . . . . . . . . . . . . . .
    . . 4
  • Money Markets . . . . . . . . . . . . . . . . . .
    . . 4.5
  • Certificates of Deposit . . . . . . . . . . . . .
    . . 5.25
  • U.S. Treasury Securities . . . . . . . . . . . .
    . 5.10
  • Corporate Bonds . . . . . . . . . . . . . . . . .
    . . 5.80
  • Fortune 500 Dividends . . . . . . . . . . . . . .
    . 3

5
Poster-Child for Dead Dividend Stock
  • Currently paying 4.1 while the stock tanks
  • Saddled with cars inferior to exports
  • Sales artificially boosted by heavy incentives
  • Gigantic pension obligations

6
30 Dead Dividend Stocks to Sell
7
A Real High Yield Investment
  • Pays dividends yields of 10 to 20 annual
  • Highly liquid vehicles that can be bought or sold
    through discount or online brokers
  • Less volatility than the average large cap stock
    portfolio
  • Drives dividends from cash-flow, not debt
    payments
  • Pays dividends monthly and/or quarterly

8
High Yield Investment Vehicles
Canadian Royalty Trusts
Closed End Funds
Convertible Securities
Convertible Preferred
Stocks
Corporate Bonds
Equity Linked Securities (ELKS) Master Limited
Partnerships (MLPs) Preferred Stocks Real Estate
Investment Trusts (REITs) Business Development
Companies Oil/Shipping Tanker Stocks Grantor
Trusts Emerging Market Debt Option Income
Funds
9
The 5 Keys to the 25 Cash Machine High Income
Investment Strategy
  1. It pays a double-digit yield
  2. Its highly diversified
  3. Its highly liquid
  4. Its flexible
  5. It offers upside appreciation with less
    volatility than common stocks

10
Eagle Bulk Shipping (EGLE)
  • Vital Statistics
  • Tanker/Shipping
  • Current Price 19.39
  • Target Price 25
  • Dividend Yield 12.27
  • Payout Quarterly
  • Pay Date June 6
  • Market Cap 696 M

11
SP 500 Covered Call (BEP)
  • Vital Statistics
  • Option Income
  • Current Price 20.60
  • Target Price 23
  • Dividend Yield 10.48
  • Payout Semi- Annual
  • Pay Date June 29
  • Market Cap 358 M

12
Apollo Investment (AINV)
  • Vital Statistics
  • Business Development Company (BDC)
  • Current Price 18
  • Target Price 22
  • Dividend Yield 9.75
  • Frequency Quarterly
  • Pay Date May 27
  • Market Cap 1.4 B

13
Building Your Own 25 Cash Machine Portfolio
  • Desire to build income portfolio
  • Look for securities paying yields of 10 to 12
  • Invest in asset classes with strong fundamentals
    in pockets of economic strength
  • Rotate in and out of sectors of strength
  • Target capital appreciation of 10 to 15 per
    year
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