They say that interest rates are going to be going up soon… Until that day comes around, many yield starved investors are left searching far and wide, trying to find quality investments that can produce the type of passive income (cash flow) that they so strongly desire.
Over the years, I’ve done my own fair share amount of digging. I’ve invested in MLPs, telecoms, utilities, consumer products, etc., turnkey properties, and most recently, REITs, in search of high yield.
Although I’m a huge fan of appreciation (capital gains), bottom line, at the end of the day, it’s cash flow that pays the bills and puts food on the table. With that said, as I look to transition from an offensive player in the investing game to a more defensive one, you could say that finding suitable investments to regularly churn out passive income has been on my mind a lot.
At this point, I would like to ask readers — Regardless of market conditions, what’s your FAVORITE income investment to help you generate passive income (cash flow)?
To extend that question further — At this present moment in time, what are you investing in for income, and are income producing assets a main objective of your investment strategy?
Again, for myself, I tend to oscillate back-and-forth between investing for passive income and investing for appreciation. In a perfect world, I would like to be able to capture both!
Right now, due to what I feel is an overheated market (and due to the fact that I’ve taken more than enough swings during this bull run!), I’m looking primarily to stash cash… Nevertheless, if I do decide to make investments here and there, I would like to focus more heavily on investing in assets that produce passive income.
Here are some individual stocks that I am currently researching for income:
- Realty Income (O)
- Digital Realty Trust (DLR)
- W.P. Carey (WPC)
- Omega Healthcare Investors (OHI)
- Health Care REIT (HCN)
- AT&T (T)
- Verizon Communications (VZ)
- Kinder Morgan (KMI)
I could probably use a good utility company as well. I’ve owned The Southern Company (SO) before in the past, but haven’t followed up on utility stocks for quite some time…
At first glance, I’m back looking at mostly REITs, telecoms and utilities again. Right now, I like stocks because I would prefer to invest in a liquid vehicle that I could in theory Buy and Hold FOREVER… or at least for a long period of time.
I’m also targeting SAFE investments that can produce 100% passive income (no more rental properties… too much debt!)… For these income investments, capital gains and appreciation are of almost ZERO importance to me, as I’m relying on other investments to carry that burden.
Perhaps there are also some quality, high-yielding ETFs or index funds out there I should consider as well?
Let’s hear your thoughts!