Latest news with #retirementincome
Yahoo
5 hours ago
- Business
- Yahoo
Need to Supplement Your Retirement Income? Buy This Extremely Safe, High-Yielding Dividend Stock.
Key Points Realty Income owns a high-quality portfolio of income-generating real estate. The REIT has a strong financial profile. It has delivered reliable and resilient growth that should continue. 10 stocks we like better than Realty Income › Many retirees face a shortfall between their Social Security benefits, savings, and actual income needs. One study found this gap to be as high as 33% for the average U.S. household. As a result, current and future retirees must find additional income sources to live comfortably. Realty Income (NYSE: O) is an excellent choice for those seeking additional income. The real estate investment trust (REIT) owns a reliable and high-quality real estate portfolio that generates stable rental income. This enables the REIT to pay a steadily rising monthly dividend currently yielding 5.5%. Here's why Realty Income is a safe way to supplement your retirement income. A high-quality portfolio Realty Income's foundation is its high-quality real estate portfolio. The REIT owns over 15,600 properties in the U.S. and parts of Europe. Its portfolio includes retail (approximately 80% of its rent), industrial (15%), gaming (3%), and other properties, such as data centers (2%), net leased to over 1,600 tenants across 90+ industries. About 90% of rent comes from tenants in recession-resistant industries and those less affected by e-commerce, such as grocery stores, home improvement centers, and convenience stores. The company invests in properties secured by long-term net leases that provide predictable rental income because tenants cover all property operating costs, including routine maintenance, real estate taxes, and building insurance. Most leases raise rents at a low single-digit rate each year. As a result, Realty Income's existing portfolio delivers steadily rising rental income. A fortress financial profile Realty Income pairs its strong real estate portfolio with a robust financial profile. The REIT pays about 75% of its adjusted funds from operations (FFO) in dividends each year. This cushion will enable it to retain over $750 million of excess free cash flow in 2025 to fund new investments. The company also has a strong A3/A- bond rating (its credit rating is in the top 10 within the REIT sector) backed by a low leverage ratio, and it has ample liquidity. This financial strength enhances Realty Income's ability to continue expanding its real estate portfolio. Resilient and consistent growth Realty Income's portfolio has demonstrated its durability over the decades. Since completing its public market listing in 1994, the REIT had only one year (2009) when it failed to grow its adjusted FFO per share. Overall, it has grown adjusted FFO per share at a more than 5% compound annual rate. The company's growth and financial strength have enabled it to raise its dividend every single year since its public market listing. Realty Income has increased its payout 131 times, including the last 111 quarters. It has grown the payout at a 4.2% compound annual rate since it went public. That steady growth is likely to continue. Realty Income's financial strength gives it the capacity to invest in more income-generating real estate. There is a $14 trillion potential market opportunity to invest in net lease properties in the U.S. and Europe. That provides the REIT with a very long growth runway. It has been steadily enhancing its growth prospects by investing in additional property classes (data centers and gaming), more countries in Europe, and through new investment platforms (credit and private capital). A great way to supplement your retirement income Realty Income's portfolio generates reliable rental income to support its high-yielding monthly dividend. Its strong financial profile further supports the dividend and its continued expansion. These features make Realty Income an exceptionally safe choice for those seeking to supplement their retirement income. Should you buy stock in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 18, 2025 Matt DiLallo has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy. Need to Supplement Your Retirement Income? Buy This Extremely Safe, High-Yielding Dividend Stock. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Times
6 days ago
- Business
- Times
Is it time to means-test the state pension?
The new state pension is paid to those who paid enough national insurance, regardless of whether they have any other retirement income. The amount you get is guaranteed to go up in line with the highest of inflation, wages or 2.5 per cent thanks to the triple lock — a guarantee that the Office for Budget Responsibility says will cost the government £15.5 billion a year by 2029. We ask if payments should be limited to those who need them. Heidi Karjalainen from the Institute for Fiscal Studies Means-testing the state pension is often floated as a potential way to rein in public spending. The logic seems straightforward: why should state support go to already wealthy pensioners? However, the state pension is an important source of retirement income even for relatively well-off pensioners. It makes up 23 per cent of the income of the top 20 per cent of the highest earners among the recently retired, according to our research in 2023. You'd have to be really very well-off not to miss the £230.25 a week that the full state pension is now worth. Second, means-testing disincentivises saving. If your level of state pension depended on how much you had in your private pension, then each pound saved would deliver a smaller net return. This would discourage people from saving more and could deter participation in workplace pensions altogether. Making decisions about private pension savings is already complex, and means-testing the state pension would make it even more difficult. You would have to consider the effect that additional savings would have on your future state pension income. • Fixing the retirement crisis means tackling public sector pensions Automatic enrolment into workplace pensions would also be harder to justify if the state pension was means-tested, as some might see no benefit from saving in a private pension. Proponents of means-testing often point to Australia as an example of where it works. However, Australia's means-testing of the public pension is balanced by compulsory (and high) private pension contributions during working life, meaning that most retire with substantial private pensions. In the UK, where we rely on a voluntary, but strongly encouraged, private pension system, it would not work as effectively. The state pension, as it stands, provides a solid foundation for retirement incomes for most people. When considering how to control the rising costs of the system, the government should instead focus on setting the state pension age and when and how to move on from the generous triple lock increases. • Read more money advice and tips on investing from our experts Edmund Greaves, editor of the Mouthy Money podcast and former deputy editor of Moneywise magazine The state pension is unsustainable in its current form. It is the single largest cost in the Department for Work and Pensions budget, accounting for 46 per cent of all benefits spending, according to the National Audit Office. Government forecasts put the bill at £168.7 billion for the 2029-30 tax year, which represents a 141.5 per cent rise since 2010-11 or more than 7 per cent annually. When the triple lock was introduced in April 2011, it rightly sought to address the pension's modest size relative to other minimum income benchmarks, such as the national living wage. But unlike every other benefit, the state pension is not means-tested. It is based solely on national insurance contributions, regardless of overall wealth. Millions of people in retirement now get payments they simply do not need. According to the Office for National Statistics, the median net wealth of households with a head aged 65 to 74 between April 2020 and March 2022 was £502,500. These people can fund their retirement without taxpayer help. Past governments have tweaked the system by raising the pension age and making it the same for men and women, but they have avoided the central question of why the wealthier should be paid the same as those who rely on the pension to survive. Next year marks an inflection point because the full state pension will, for the first time, exceed the income tax personal allowance — the amount of income you can have tax-free. This means that some of the state pension could be taxable and those pensioners without tax-sheltering options for any additional retirement income will pay tax on it while others will be able to rearrange their finances to avoid this. It is an indefensible imbalance. Instead of endless debates over the triple lock or incremental increases in the pension age, we should start means testing. A fair approach would be to assess net worth at state pension age and direct support to those who truly need it. Relying on the tax system to claw back payments from the rich will never deliver enough savings. The state pension is a cornerstone of the UK's social contract. If the state continues to distribute it indiscriminately, funded by working-age taxpayers, that contract will erode. Those who have, laudably, built enough wealth to fund their retirement should not get state support they do not need. Means testing would protect the poorest, reduce unfairness, and put the pension budget on a sustainable footing for the future.
Yahoo
07-07-2025
- Business
- Yahoo
Republican tax cut calls for shielding retirement income from Wisconsin income taxes
MADISON — Included in a Republican tax cut plan advancing in the Legislature is a provision to shield some retirement income from Wisconsin income taxes. The Republican plan would exclude from taxation the first $24,000 of retirement income received by individuals age 67 and over. Non-residents would not be able to claim the exemption, and part-time residents could only claim the portion of their income sourced to Wisconsin. "We've done all these things to make (Wisconsin) a great place to live and work and raise a family. I want it to be also a great place for those people that have worked so hard to make all that happen, to stay and watch their grandkids grow," said Joint Finance co-chair Rep. Mark Born, R-Beaver Dam. The GOP plan also includes a measure proposed in Evers' budget, increasing the maximum deduction for adoption expenses from $5,000 to $15,000. More: Republicans back boost in special education funding but pare back Gov. Tony Evers' proposal Those provisions are part of a $1.3 billion tax cut proposal that includes expanding the state's second-lowest tax bracket to bring in more residents, a change that is estimated to lower taxes for 1.6 million filers. The Legislature's budget-writing Joint Finance Committee approved the tax measures on June 12 on a party-line vote. The package will be part of a state budget plan that will go to the full Assembly and Senate for approval and sent to Gov. Tony Evers for his signature. Evers' office did not comment on the June 12 actions. This article originally appeared on Milwaukee Journal Sentinel: Wisconsin Republicans call for shielding retirement income from taxes
Yahoo
19-06-2025
- Business
- Yahoo
3 Dividend Growth Stocks To Buy and Hold Forever
Some say that Dividend Investing is boring, claiming that dividend stocks are low growth and offer near-flat capital appreciation compared to the latest investment trends. But when all things fail, these boring stocks prevail. Examples of boring stocks include those on the Dividend Kings list: resilient companies with shareholder-friendly management that have raised their dividends for at least 50 consecutive years. However, aside from stability, what most people overlook is their ability to generate significant income in retirement that increases - and to me, that's anything but boring. Warren Buffett Loves This Cheap Dividend Stock and So Do Company Insiders 3 Dividend Growth Stocks To Buy and Hold Forever Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. So, let's take a look at three quality names: three Dividend Kings that are well-suited to own, literally forever. Using Barchart's Stock Screener, I selected the following filters to get my list: Overall Buy/Sell/Hold Signal: Buy. 5-Yr Dividend Growth (%): Set at 40% - Very High. Number of Analysts: 16 analysts. The more, the better, as it builds a stronger consensus. Current Analyst Rating: Moderate to strong buy. Watchlist: Dividend Kings. I also added filters for overall opinion strength and direction to avoid any red flags. With the filters in place, I got exactly three Dividend Kings: Let's discuss each, starting with the Dividend King with the highest 5-year dividend growth rate. Parker-Hannifin Corp is the leader in motion and control technologies, operating in 104 countries. Its products are found in, on, and around nearly everything that moves. The company solves the most significant engineering challenges that make the world cleaner, smarter, and safer. Parker-Hannifin's latest quarterly financials reported sales of $4.96 billion, down 2.2% year-over-year. Despite this, net income was $961 million, up 32% compared to the previous same quarter, last year. Parker is a Dividend King, having increased its dividends for 69 consecutive years. The company pays a forward annual dividend of $7.20, which translates to a yield of approximately 1.1%. That said, Parker-Hannifin's 5-year dividend growth rate is 92.09%, and the stock has an average rating of 4.55, or a strong buy, from 20 analysts. The second company on this list is Abbott Laboratories - a company I covered a fair bit, so I'll keep the introductions short. Abbott operates as one of the most diversified healthcare companies in the world, providing a range of healthcare products tailored to various health needs. Abbott's latest quarterly financials reported sales of $10.4 billion, up 4% year-over-year. Further, reported net income was $1.3 billion, up 8.2% compared to same quarter last year. Abbott is proud of their 53-year streak of increasing their dividend. As of this writing, the company pays a forward annual dividend of $2.36, which translates to a yield of approximately 1.76% and features a 5-year dividend growth of 71.88%. ABT stock has an average rating of 4.52, or a strong buy, from 25 analysts. The last company on my list of Dividend Kings to own forever is Abbvie Inc. Like Abbott, Abbvie also operates in the medical sector. Specifically, Abbvie is a pharmaceutical company with a global presence in 175 countries, recognized for its innovative cancer treatments. The company is actively expanding and has established a significant market presence following the acquisition of Allergan, a leader in eye care, neurosciences, and medical aesthetics. Abbvie's latest quarterly financials reported sales of $13.3 billion, up 8.4% year-over-year. Its net income was $1.3 billion, a decrease of 6% compared to the same quarter last year. Despite that, Abbvie is a newly minted Dividend King, having increased its dividends for over 50 years. The company pays a forward annual dividend of $6.56, translating to a yield of approximately 3.44%. Its 5-year dividend growth is 44.86%. The stock has an average rating of 4.11, or a moderate buy, from 27 analysts. So, there you have it: three companies with shareholder-friendly management that have significantly increased their dividends over the past five years. It's about as close to proof as you can get that long-term investing can beat market noise and still make significant returns for shareholders. The key is to know which companies to invest in - and these three Dividend Kings are an excellent start. On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
17-06-2025
- Business
- Telegraph
What is pension clawback, and is your retirement at risk?
Pension clawback is an outdated feature that's still embedded in some final salary pension schemes, which could see your retirement income cut once you reach state pension age. Clawback has become controversial. Over the years it has taken people by surprise and negatively affected their retirement plans. Women have been hit particularly hard by the rules. Over the years, many final salary schemes, also known as defined benefit schemes, which guarantee a set income for life, have changed their rules or phased out pension clawback, choosing to either cap it or scrap it. But there are still some that are affected. Here, Telegraph Money explains what pension clawback is, what impact it can have, and what you can do about it. What is pension clawback? How is pension clawback calculated? What impact could pension clawback have on my savings? What can I do about pension clawback? Will the Government abolish pension clawback? What is pension clawback? Pension clawback, which can also be referred to as 'pension integration' or 'bridging pension', is an outdated feature of some defined benefit workplace schemes. It dates back to 1948, when the state pension was first introduced and linked to defined benefit schemes. Clawback aimed to prevent individuals or schemes from overpaying on pension contributions, on the assumption that the state pension would top up the retiree's income, enabling the employer to offset some National Insurance costs. The state pension and defined benefit schemes are no longer linked, and these 'National Insurance modification' rules were abolished in 1980, but some work schemes are still designed around them. Lisa Picardo, from PensionBee, said: 'When an employee reaches the state pension age, this practice allows employers to 'claw back' some of the pension contributions made.' This penalty cuts the workplace pension based on the assumption your state pension will 'top-up' the shortfall. Ms Picardo added: 'The problem is, this can result in an unexpected noticeable drop in income just as someone reaches a milestone they've been working towards their whole working lives.' How is pension clawback calculated? Pension clawback is taken as a fixed cash amount, calculated based on your years of service linked to the affected pension scheme, when you reach or have reached state pension age. This means that employees who have worked for the same number of years can have the same amount of money deducted from their pension payout, even though they did very different jobs and earned very different amounts. This is in contrast to other types of pension fees, which are often charged as a percentage of your pot. Who is affected? Anyone with a defined benefit pension that includes these rules can be affected by pension clawback. However, some will notice the effects more keenly – as pension clawback deducted from the pension is a fixed cash amount, it disproportionately affects those with smaller pension pots and lower pension incomes. Women, early retirees and lower-paid workers are often the hardest hit.
