3 Retirement Ideas For Recurring Income

First, we are targeting economically sensitive stocks that are set to benefit from both an accelerating post-covid economy and from government spending.

Also as always, we keep focused on cheap high-dividend stocks that are set to reward investors with both high yields and long-term capital gains. We share three of our top picks today.

W. P. Carey Inc. (WPC)

Yielding 6.1%, W.P. Carey is one of the highest-yielding triple-net REITs and they have put the growth pedal to the metal. Triple-net REITs benefit when the economy is building up.

Companies look to expand and that means increasing their real estate. These REITs have been borrowing at low prices and are now looking to buy. This will drive growth for many years to come.

WPC has raised their dividend every quarter for over 20 years, and they extended that yet another quarter with their first dividend of the year. WPC goes ex-dividend soon on March 30th.

AGNC Investment Corp. (AGNC)

Yielding 8.7%, AGNC Investment is an agency mREITs that benefits from a steepening interest rate curve. They invest in assets that have long maturity dates, and they borrow funds for 60-90 days. So when near-term interest rates are near zero and long-term rates are heading up, you have the ideal conditions for making money.

AGNC reported their tangible net book value at $17.51/share as of the end of February, up by $0.10 since January. That included the drop in price on agency MBS that occurred the last week of February. So even as the price of their assets went down, AGNC's book value climbed. This is due to their hedges and out-earning their dividends.

We are ecstatic to be buying AGNC at a discount to book value. They are one of the highest quality mREITs, that should be trading at a 5-10% premium to book. We will enjoy the upside as AGNC builds its book value, and when its taxable income rises. We expect a dividend hike soon!

Ares Capital (ARCC)

Yielding 8.6%,  Ares Capital is a true blue-chip in the BDC sector. They have not only survived but have thrived through various economic conditions including the Great Financial Crisis and now COVID.

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