Ask the Readers: What’s Your Favorite Income Investment?

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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!

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Financial Samurai
5 years ago

Favorite income investment: my site, hands down. Great correlation with effort and income amount.

Real estate used to be my favorite income investment, but now it’s online web properties.

Financial Samurai
5 years ago
Reply to  FI Fighter

You can, and you will!

Money Unbinding
5 years ago

Dividend growth investment is my current focus. I like your list of stocks and own some of them.

Writing puts is another option of my investment income. I am learning it and like it.

All the best,

No Nonsense Landlord
5 years ago

I like my rental income, but as I get ready to retire, I want to have an even more passive income stream. The RE has allowed me to build an incredible net worth (for me), and a solid 6-figure RE income stream. I do not like REIT stocks, or Bonds, as I already own my own REITs and mortgage bond portfolio (my own paid off properties). Diversity is better. I like mostly index ETFs (IVV, IVW, DVY, IWM, QQQ, FHLC). When I rollover my 401K to my own portfolio, i should be able to get ~$24K+ annually in dividend income.… Read more »

5 years ago

VDY. The Canadian Vanguard high dividend ETF. Vanguard has only been in Canada for a few years but I started putting money in as soon as they got here.

Rental properties sound great but only if you are handy which I am not. I think that management fees must really eat in to profits,

tom dicks
5 years ago

i own kmi and ohi loove them both but could not dicide between them i plan tokeep buying both
71 y/o stroke survior that had quit working at 59 y/o trying to fill the gap between ss and what is needed to pay the bills

5 years ago

I’m itching to add more STWD , NLY and a few of the names mentioned on recent big market down days. Even as interest rate slowly rise in the the next few years (5-10), these names will continue to thrive hopefully.

5 years ago

PG, KO, JNJ, XOM are about as close as you can get to guaranteed income that grows faster than inflation. Those are the core of my portfolio.