If you want to add more yield-producing investments to your portfolio, one option for you could be master limited partnerships (MLPs). They could help increase your portfolio’s overall yield and improve your retirement income strategy.
MLPs – which invest largely in oil and gas assets – are experiencing a revival and currently pay attractive yields relative to traditional income producing assets, like dividend-paying stocks and US Treasuries:1
Asset Class Yield and Correlation
(Click chart for larger version)
Source: Newfound Research LLC. Yield on a given day is calculated using smoothed 12-month trailing dividends. Yield presented in the table is computed as of 3/31/2014. Correlation is calculated as Pearson correlation of monthly returns between the asset class ETF and the S&P 500 ETF “SPY” from ETF inception to 3/31/2014.
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