I think we can all agree that it would be ideal to be able to fund a comfortable retirement 100% from safe and growing dividends. That way you will be able to sleep well at night even in the most severe bear market because no matter how low stocks drop your portfolio’s income would be unaffected. My own high-yield income growth retirement portfolio is based around this goal and uses three time-tested investing principles:

  • High and safe yield (5+% portfolio goal)
  • Fast long-term dividend growth (10+%)
  • Good companies bought at firesale prices (high margin of safety and long-term valuation return boost) – average holding is 32% undervalued

Essentially I’m a dividend-focused contrarian value investors. That means always looking for the best opportunities in terms of generous, safe, and growing yield, that, for short-term reasons, Wall Street hates. The key to this strategy is to avoid “yield traps” or stocks with mouth-watering but unsafe dividends that are likely to be cut and thus send the share price crashing.

Fortunately Wall Street is famous for overreacting to a company’s short-term challenges, and thus there are usually plenty of great high-yield, deep value opportunities for long-term income investors to profit from. Let’s take a look at why Kite Realty Group (KRG) is one of my strongest conviction buys right now. Not just do I own it myself, but during the most recent market downturn, it was one of just 11 stocks I was buying for my portfolio.



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