AMLP offers an 8.24% yield from midstream MLPs required to distribute 90% of profits to shareholders.
VYMI returned 33.78% year-to-date while avoiding AI exposure through international dividend stocks.
Anticipated Fed rate cuts may push bond yields lower and increase prices on interest-rate based income investments.
If you're thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected.
Retirees have faced some grueling times over the past several years. The double-digit inflation wrought by Bidenomics forced many to sell growth assets just to have cash to make ends meet. Shrinking buying power minimized income-based investments' coverage to just basic necessities, and often falling short of even that level.
But there are options, and two ETFs (Alerian MLP ETF (NYSE: AMLP) and the Vanguard International High Dividend Yield Index Fund ETF Shares (NASDAQ: VYMI)) are portfolio cornerstones that can help retirees do better than if they just relied on Social Security alone.
The economic recovery that the Trump administration is engineering has brought inflation down significantly. The US government is identifying and eliminating rampant waste, fraud, and abuse of taxpayer money; domestic business is weaning itself off of foreign dependence; and the overall economic climate is positive. While that is all good news, investors still face looming threats to the solvency of Social Security and the rebuilding of their portfolios.
As inflation has been cut so drastically, Treasury Secretary Scott Bessent and numerous other economists anticipate another Fed rate cut. As such, interest-rate based income investments will likely see their prices go up and yields fall. Additionally, while the S&P 500's bull run still seems strongly holding its trajectory, it is clearly overweighted by the AI focused "Magnificent 7" stocks - and if concerns of an AI bubble are even partially true, may be in for a sizable correction.
Investors seeking a non-interest rate income investment and a growth investment with limited AI downside exposure might wish to consider the following ETFs:
- Alerian MLP ETF (NYSE: AMLP)
- Vanguard International High Dividend Yield Index Fund ETF Shares (NASDAQ: VYMI)
Alerian MLP ETF
Midstream companies are essential for transmitting hydrocarbon products both to and from refineries and other locations.
If oil and gas are the lifeblood of our domestic energy system, then the midstream industry could be likened to its circulatory system. In the same way that the veins and circulatory system of the human body transports blood to all of its vital organs, the midstream sector provides the pipelines, maritime shipping, and inland trucking to deliver oil and gas hydrocarbon product to storage facilities, refineries, processing centers for freezing, and to warehouses and retail outlets. Publicly traded midstream companies are often organized as Master Limited Partnerships (MLP) and are required to remit 90% of their profits back to shareholders in exchange for access to the capital markets.