Green Retirement

 Boost Retirement Income with The Dogs of the Dow

Just because you have an asset allocation in stocks, does not mean that you have to forgo income, you can achieve higher rates of return than Treasury Bills or Money Market Accounts by considering the popular Dogs of the Dow for your stock portfolio.  Almost everyone should have a long-term asset allocation that includes stocks, and the Dogs of the Dow are one way, you can boost your retirement income.

The top five yielding companies in the Dogs of the Dow, which includes household names like, AT&T, Verizon, Pfizer, Citibank, Bank of America, currently yield a combined average of 7.81%.  With the Federal Reserve cutting interest rates by half a point, and the likelihood of further rate cuts down the road, retirees are facing ever diminishing returns on their bond allocations.  The best FDIC insured Money Market rates are no higher than 3.5%, and may drop lower, following the Fed’s cut.

Here is a link that lists the current yields on the Dogs of the Dow.  If you don’t know what the Dogs of the Dow is, speak with your financial advisor and tax planner, to see if it is the right retirement investment for you.  Your financial planner should be able to help you institute a dollar cost averaging plan, to take advantage of the high yields, while reducing your downside risk. Also visit Wikipedia to learn more on the Dogs of the Dow.

Green Retirement Planning does not offer investment advice, the views expressed in this article, are solely those of Ramsay Mameesh - Founder of Green Retirement.