According to a OnePoll survey, more than half of all baby boomers worry they’ll never be able to retire.
And that was in mid-2021… before intense volatility and a bear market struck this year.
Frankly, I get that fear. It’s a real and, unfortunately, valid concern. And the inflation we’ve seen hasn’t improved the situation.
In fact, research firm Indeed Hiring Lab reports a recent uptick in retirees returning to the workforce.
And BMO Real Financial Progress Index adds that about a quarter of Americans have delayed their retirement due to inflation.
For my part, I’m not planning on retiring any time soon. I love what I’m doing too much. But I know not everyone is in the same position I’m in. And retiring in today’s economy seems like an uphill struggle.
That’s why I’ve made it my mission to give you the tools you need to retire – in comfort.
That goal is still very much possible, something my team and I strive to show every day at Wide Moat Research.
We use our decades of real estate and stock market experience to find you the best income-generating ideas.
And the best way of gaining extra income from the market is through what we call SWAN, or sleep well at night, stocks. These dependable companies help you rest at ease, knowing that no matter what the markets are doing…
They’ve got excellent chances of paying you dividends every year, regardless. That’s what I want to show you today.
A SWAN in Action
Unlike “sucker yields” – stocks that pay out far too much compared to their share prices – SWAN stocks have sustainable dividends and strong businesses supporting them.
Altria (MO) is one excellent example of a SWAN. This tobacco company has a 190-year-old history and yields 8.5%. This includes a 6% dividend hike at the end of August.
Today that amounts to an annual $3.82 per share.
Here’s what sets that impressive dividend apart from sucker yields…
On top of its history and solid plans for the future – which, incidentally, include phasing out of cigarette sales altogether over time – its dividend is well-covered by $4.84 in 2022 earnings.
In other words, Altria is making more than enough money to pay its dividend… raise it… and grow its operations from here.
Speaking of which, Altria has raised its dividend every year for 53 years straight. That makes it a dividend king: a company that boasts a half-decade or more of increasing its payouts.
That kind of track record isn’t a guarantee it’ll continue. But you’d better believe Altria has no intention of ruining it unless faced with a full-on catastrophe.
It also intends to grow that dividend. If everything goes as planned, that will be about 5% annually – about 3% faster than the bond market’s 30-year inflation estimates.
Here’s what that means in simpler terms: A SWAN stock like Altria, with its safe 8.5% yield, offers not only dividends you can count on…
But exponentially more inflation-adjusted income over time.
Inflation Has Nothing on SWANs
Now, dividend kings don’t grow on trees. Nor does your “average” SWAN.
But they are out there. I follow a whole list of them. (To get access to a new report I just put together on how I find SWAN stocks – for free – click here.)
But for our purposes today, let’s stick with Altria to show how much SWANs can positively affect your portfolio.
My team ran some numbers through a back-test screening system. And here’s what we found…
Had you bought Altria in 1986 (as far back as the system measures) and reinvested its dividends… Your dividend income stream would have grown to $25 for every $1 spent.
That’s an incredible 18% annual income growth over 36 years, thanks to the double compounding of exponentially growing dividends and shares.
Or, to put it another way, buying Altria back then and reinvesting all the dividends would have left you with the kind of money that retirement dreams are made of.
And even if you hadn’t reinvested those dividends, you’d still be looking at an incredibly reliable income stream growing at 2.5x the rate of long-term inflation.
That’s the power of a SWAN.
Now, I’m not saying go out and put all your money into Altria today. There are plenty of other opportunities out there that offer SWAN benefits. Including some for those who don’t have 36 years to wait.
I’ve recently put together a presentation on one such opportunity.
On Wednesday, October 19, at 8 p.m. ET., I’m going to reveal what it is. I’ll share everything you need to know about a unique strategy you can use to generate even more income from the highest-caliber stocks I follow.
And that’s not all. Just for tuning in, I’ll share the name and ticker of one of my top SWAN stocks right now.
If you’re interested in learning how to boost your income stream and not have to worry about money in retirement, I encourage you to click here to sign up and join me.
So you can build a portfolio to withstand – and outlast – economic woes… Including record-high inflation or whatever else comes our way.
Happy SWAN (sleep well at night) investing,
Editor, Intelligent Income Daily
P.S. I look forward to seeing you at my summit, but don’t forget…
If you sign up for free VIP access to my upcoming event, you’ll be able to get a brand-new report my team put together on SWAN stocks called My No. 1 Recession-Proof Investment.
This report isn’t available anywhere else and is a special perk for those who register for VIP status.