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If you are looking at high-yielding stocks while the S&P 500 Index (SNPINDEX: ^GSPC) is trading near all-time highs, as it is today, you’ll likely be considering stocks with higher levels of risk. Simply put, the high yield is the compensation for the extra risk.

As an income investor, you need to make sure you are shouldering risks that are worth taking. AGNC Investment (NASDAQ: AGNC) and its nearly 14% yield have a very real chance of eventually letting you down. EPR Properties (NYSE: EPR) and W.P. Carey (NYSE: WPC) have let investors down, too, but they both look like they’re on an upward trajectory. Here’s what you need to know.

AGNC Investment is one to avoid

To be fair, AGNC Investment isn’t a bad company. It has produced a fairly strong total return since going public. But the total return includes reinvesting dividends.

If you are a dividend investor trying to live off your dividends, you won’t be buying more shares with that income, you will be spending it on things like food and housing. This is where the big problem comes in for this mortgage real estate investment trust (REIT).

As the chart above highlights, while the total return line (orange) is positive, the price (purple) and dividend (blue) have been trending steadily lower for years. And before that decline started, the dividend was volatile.

Even if the dividend is increased from its current level, there will always be a substantial risk that it will be cut again because of the nature of the mortgage REIT niche. Indeed, mortgage REITs are fairly complicated investments that only more aggressive and active investors should probably be looking at.

But dividend investors don’t really need a deep dive into the mortgage REIT sector to see that AGNC Investment’s payout history isn’t going to be appealing.

All dividend cuts aren’t the same

That said, just because a REIT cuts its dividend doesn’t mean you should permanently throw it off your high-yield wish list. Two dividend-cutting REITs that you might want to consider today are landlords EPR Properties and W.P. Carey.

EPR Properties cut its dividend during the pandemic because the experiential properties it owns (like casino resorts and movie theaters) were effectively shut down by social distancing.

W.P. Carey cut its dividend at the start of 2024 when it decided to exit the office sector in one quick move after the pandemic’s work-from-home trend led to ongoing difficulties for that property type.

What’s notable, however, is that both are growing their dividends again. W.P. Carey’s move was the more compelling, because it started back up with its cadence of quarterly increases in the quarter after the cut. It was a clear sign that it was nothing more than a reset driven by the large portfolio change it made (office space was 16% of assets prior to the exit from that property type).

Story continues

And the REIT’s departure from the office sector has left it with a record level of liquidity. Management plans to put that cash to work buying more properties, which will add to the company’s portfolio and its ability to keep raising the dividend.

In other words, W.P. Carey’s 5.8% yield not only looks like it is on solid ground, but it also appears that the dividend is highly likely to keep growing. It’s the kind of dividend stock you’ll be glad to get your hands on before investors realize the opportunity they are missing.

EPR Properties’ story is a little less attractive, but hardly bad. Owning assets that bring people together is a solid model in the internet age, even though it was a terrible focus during the pandemic.

And while the portfolio is still overweight in movie theaters (37% of rents), overall rent coverage is now at 2.2 times, above the 1.9 times before the pandemic. Rental coverage for movie theaters, which were hit particularly hard, is back to where it was in 2019. Simply put, the risk profile here has vastly improved.

EPR’s payout ratio of its adjusted funds from operations in the second quarter of 2024 was roughly 72% — a very reasonable number. The dividend has now been increased three times since it was cut, with the last increase coming in March 2024.

EPR Properties did what it needed to do to get through a massive exogenous event. At this point, it looks like it is getting back on the growth track, which suggests that grabbing a fistful of its 7.1% yielding shares could be well worth it.

Investing involves risk, but only some risks are worth taking

Every investment you make requires you to shoulder some risk, even if you own cash (which could lead you to miss out on other investment opportunities). The goal is to balance risk and reward in a way that allows you to sleep at night.

For income investors, the dividend risk at AGNC Investment just isn’t likely to be worth it. But the dividend risk at W.P. Carey and EPR Properties seems pretty low even though both have cut their dividends in the recent past.

Wall Street’s perception of heightened dividend risk, however, could be offering long-term dividend investors an opportunity to lock in high yields from these two REITs that have already started growing their dividends again.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,049!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,847!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $378,583!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 14, 2024

Reuben Gregg Brewer has positions in W.P. Carey. The Motley Fool recommends EPR Properties. The Motley Fool has a disclosure policy.

2 High-Yield REITs to Buy Hand Over Fist and 1 to Avoid was originally published by The Motley Fool

Wilmington, Delaware, United States, Transparency Market Research Inc. -, Oct. 18, 2024 (GLOBE NEWSWIRE) — The global sterilization services market (살균 서비스 시장) is estimated to flourish at a CAGR of 9.5% from 2023 to 2031. Transparency Market Research projects that the overall sales revenue for sterilization services is estimated to reach US$ 10.1 billion by the end of 2031.

Increasing outsourcing of sterilization services by medical device manufacturers and healthcare facilities to specialized service providers is driving market growth. Outsourcing allows companies to focus on core activities while benefiting from specialized expertise and cost efficiencies.

Growing awareness of environmental sustainability is prompting the adoption of eco-friendly sterilization methods and packaging materials. Companies are investing in technologies such as hydrogen peroxide sterilization and reusable packaging to minimize environmental impact and meet sustainability goals.

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Collaboration among regulatory authorities to harmonize sterilization standards and requirements globally is facilitating market growth. Harmonization streamlines compliance efforts for companies operating in multiple regions, reducing regulatory burdens and facilitating market access.

The emergence of telesterilization services, enabled by remote monitoring and automation technologies, is revolutionizing the sterilization landscape. Telesterilization allows for real-time monitoring and control of sterilization processes from remote locations, enhancing efficiency, flexibility, and scalability in sterilization operations.
Key Findings of the Market Report

• The ethylene oxide method segment leads the sterilization services market due to its versatility and effectiveness in sterilizing various medical devices.
• Contract sterilization services emerge as the leading segment in the sterilization services market due to the growing demand for outsourced sterilization solutions.
• Offsite sterilization services emerge as the leading segment in the sterilization services market due to their widespread availability and convenience.

Sterilization Services Market Growth Drivers & Trends

• Growth in healthcare facilities and surgeries drives demand for sterilization services to ensure patient safety.
• Compliance with evolving regulations fuels market growth.
• Innovation in sterilization technologies enhances efficiency and effectiveness.
• Focus on infection prevention drives demand for reliable sterilization services.
• Expansion of healthcare infrastructure in emerging economies boosts demand for sterilization services.

Global Sterilization Services Market: Regional Profile

• In North America, stringent regulatory standards and a robust healthcare infrastructure drive market growth. Key players like Steris Corporation and Cantel Medical lead with comprehensive sterilization solutions tailored to meet stringent FDA requirements. The increasing prevalence of healthcare-associated infections emphasizes the need for effective sterilization services, further fueling market expansion.
• Europe boasts a mature sterilization services market, characterized by a strong focus on quality and innovation. Companies such as Sterigenics and Synergy Health PLC dominate, leveraging advanced sterilization technologies and adherence to strict EU regulations. Rising healthcare expenditure and a growing emphasis on patient safety propel market growth.
• In the Asia Pacific, rapid urbanization and expanding healthcare infrastructure drive market demand. Companies like E-BEAM Services, Inc. and Cosmed Group are capitalizing on the region’s burgeoning healthcare sector, offering cost-effective sterilization solutions tailored to meet diverse market needs. Increasing medical tourism and government initiatives to improve healthcare standards further contribute to market growth, positioning the Asia Pacific as a key growth engine in the global sterilization services market.

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Sterilization Services Market: Competitive Landscape
The sterilization services market is fiercely competitive, driven by stringent regulatory requirements and the increasing demand for sterile medical devices.

Key players such as Steris Corporation, Cantel Medical, and Sterigenics dominate with their extensive service offerings and global presence. Emerging contenders like E-BEAM Services, Inc. and Cosmed Group challenge established norms with innovative sterilization solutions.

Customized service packages, advanced technologies, and adherence to industry standards are pivotal in gaining a competitive edge. Strategic partnerships and acquisitions are prevalent as companies seek to expand their service portfolios and cater to the growing needs of healthcare facilities worldwide. Some prominent players are as follows:

• E-BEAM Services Inc.
• Medistri SA
• BGS
• Sterigenics U.S. LLC – A Sotera Health company
• Cosmed Group
• Microtrol Sterilization Services Pvt. Ltd.
• Midwest Sterilization Corporation
• Andersen Caledonia
• SteriTek Inc.
• Medivators Inc.
• STERIS
• WuXi AppTec
• Avantti Medi Clear
• Viant Technology LLC

Product Portfolio

• SE-BEAM Services Inc. specializes in providing comprehensive structural engineering solutions. With a focus on innovation and client satisfaction, SE-BEAM offers expertise in structural design, analysis, and consulting services, ensuring safe and efficient construction projects across various industries.
• Medistri SA is a leading provider of sterilization process monitoring solutions for healthcare facilities. With cutting-edge technology and rigorous quality standards, Medistri offers innovative products and services to ensure compliance and safety in sterilization processes, contributing to enhanced patient care worldwide.
• BGS is a trusted supplier of precision instrumentation and control systems for industrial applications. With a commitment to reliability and performance, BGSt offers a diverse portfolio of products, including sensors, actuators, and control systems, catering to the needs of industries such as manufacturing, energy, and automation.

Sterilization Services Market: Key Segments
By Method

By Type

• Contract Sterilization Services
• Sterilization Validation Services

By Mode of Delivery

• Offsite Sterilization Services
• Onsite Sterilization Services

By End-user Industry

• Medical Device Companies
• Hospitals & Clinics
• Food & Beverages
• Pharmaceuticals
• Others

By Region

• North America
• Latin America
• Asia Pacific
• Europe
• Middle East & Africa

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More Trending Reports by Transparency Market Research –

Food Ingredients Sterilization Market (食品素材の殺菌市場) – The global food ingredients sterilization Market is projected to advance at a CAGR of 4% from 2023 to 2029

mHealth Services Market (سوق الخدمات الصحية) – The global mHealth Services Market is projected to expand at a CAGR of 15.7% during the forecast period from 2023 to 2031

About Transparency Market Research

Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

Contact:

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There are many misconceptions about investing, and a common one is that it’s difficult. Are there many moving parts that are confusing, even for those who study this for a living? Absolutely. Does it have to be complicated or require “advanced knowledge”? Not at all.

One way to simplify investing is to use exchange-traded funds (ETFs). Seasoned investors preach the importance of a well-rounded and diversified portfolio, and using ETFs is arguably the easiest way to accomplish this goal. There’s no need to invest in dozens (or hundreds) of individual stocks if you don’t want to do so. A few ETFs can do the trick.

Following are four Vanguard ETFs that can give you a well-rounded portfolio you can lean on for the long haul.

1. Vanguard S&P 500 ETF

If you ask me, no single investment serves as a better one-stop shop than an S&P 500 ETF. The Vanguard S&P 500 ETF (NYSEMKT: VOO) is my largest holding and likely will be for the remainder of my investing journey.

The S&P 500 index tracks 500 of the largest U.S. companies on the market, so investing in this ETF exposes you to some of the world’s most accomplished and promising companies. It contains businesses from all the major sectors, many of which are industry leaders. Here’s how the ETF is broken down by sector (as of Sept. 30):

• Communication services: 8.9%

• Consumer discretionary: 10.1%

• Consumer staples: 5.9%

• Energy: 3.3%

• Financials: 12.9%

• Health care: 11.6%

• Industrials: 8.5%

• Information technology: 31.7%

• Materials: 2.2%

• Other: 0.1%

• Real estate: 2.3%

• Utilities: 2.5%

There’s volatility with any stock or ETF on the market. However, this ETF generally has more long-term stability because it contains all large-cap companies better built to weather whatever storms come their way. Since it was created, it has averaged impressive annual returns.

If you’re looking for a single ETF that can be the bulk of your portfolio, this is it.

2. Vanguard Mid-Cap ETF

The Vanguard Mid-Cap ETF (NYSEMKT: VO) contains just over 310 mid-sized companies. Typically, mid-cap companies have a market capitalization between $2 billion and $10 billion. Because of the size of the companies in this ETF, it can be the sweet spot between stability and growth.

On the one hand, mid-cap companies are small enough to be agile and take on new growth opportunities. On the other hand, companies that managed to hit this market size typically have sustainable business models.

This ETF also contains companies from all major sectors, but it’s more diversified than the S&P 500. The top five represented sectors are industrials (21.1%), consumer discretionary (12.3%), financials (12.6%), technology (13.8%), and healthcare (9.2%).

Story continues

I would feel comfortable with up to 10% of my stock portfolio being in mid-cap companies.

3. Vanguard Small-Cap ETF

Small-cap stocks are generally those with a market cap between $300 million and $2 billion. The Vanguard Small-Cap ETF (NYSEMKT: VB) contains over 1,300 of these companies, with a median market cap of $7.8 billion. This ETF doesn’t follow the Russell 2000 index like many other small-cap ETFs, but is still broad and diversified.

Small-cap stocks come with more risk than larger companies because they’re generally more volatile and still finding their lane in their respective industries, but they can also have more upside because of their growth potential.

To be clear, not all small-cap companies are young or early-stage companies; many are established businesses operating in niche markets.

Similar to mid-cap stocks, having around 10% of your stock portfolio is a good goal. That’s just enough to benefit from growth without relying too much on it.

4. Vanguard Total International Stock ETF

Part of having a well-rounded portfolio is investing in companies abroad. The Vanguard Total International Stock ETF (NASDAQ: VXUS) is a great way to do this because it contains companies from both developed and emerging markets.

Developed markets have more stable economies, a higher level of infrastructure, and mature financial markets (think the U.S., U.K., Japan, and Australia). Emerging markets have younger economies, increasing industrialization, and developing infrastructure (think: Brazil, China, Mexico, and Thailand).

Investing in companies from both markets is beneficial because they come with different risks and benefits. Developed markets are less risky because they have more economic (and often political) stability. However, they may not have room for rapid growth. Emerging markets carry more risk because of increased volatility and potential political instability, but they offer the possibility of higher growth.

I don’t recommend having a large portion of your portfolio in international stocks (mostly because U.S. companies have historically shown more long-term growth potential), but anything up to 20% of your portfolio is acceptable.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,049!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,847!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $378,583!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 14, 2024

Stefon Walters has positions in Vanguard Index Funds-Vanguard Mid-Cap ETF, Vanguard Index Funds-Vanguard Small-Cap ETF, Vanguard S&P 500 ETF, and Vanguard Total International Stock ETF. The Motley Fool has positions in and recommends Vanguard Index Funds-Vanguard Mid-Cap ETF, Vanguard Index Funds-Vanguard Small-Cap ETF, Vanguard S&P 500 ETF, and Vanguard Total International Stock ETF. The Motley Fool has a disclosure policy.

These 4 Vanguard ETFs Are All You Need for a Well-Rounded Stock Portfolio was originally published by The Motley Fool

Market News and Data brought to you by Benzinga APIs

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Market News and Data brought to you by Benzinga APIs

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below.

Imagine that you have $900,000 in a Roth IRA and collect another $2,200 per month in Social Security. Can you afford to retire at age 66?

A good way to answer this question is to start with your budget. What do you expect to spend on essentials, like housing and fixed monthly expenses, and what will it cost to maintain your lifestyle? Then take a look at your retirement income and see how all those figures compare. (And if you need additional help planning for retirement or building an income plan, consider speaking with a fiduciary financial advisor.)

Income and Expense Planning

For the sake of argument, let’s say that you earn the median household income of $75,000. Conventional wisdom suggests that you’ll need about 80% of your pre-retirement income to maintain your current lifestyle in retirement. That would mean that your Roth IRA withdrawals and Social Security benefits would need to generate about $60,000 before taxes and about $54,600 in after-tax income.

Can that work?

To start, you have $26,400 per year in Social Security benefits. Since full retirement age is 67 for most, your benefits would be around 7% by claiming at age 66. (Based on these numbers you would receive $28,295 per year in benefits if you retired at 67.)

You also have your Roth IRA, which will eliminate your potential tax liability on both your portfolio withdrawals and your Social Security. Since your Roth withdrawals aren’t taxable income, your Social Security benefits wouldn’t generate any federal income taxes either. Also, Roth accounts aren’t subject to required minimum distributions (RMDs) when you reach 73, giving you more flexibility compared to a pre-tax account.

The issue is that your Roth portfolio is relatively light to support a full retirement. You may be able to make the numbers work, but there wouldn’t be a lot of wiggle room in your budget.

For example, take the classic 4% rule for withdrawals, which calls for you to withdraw 4% from a balanced portfolio in your first year of retirement and then adjust subsequent withdrawals for inflation. The 4% rule is designed to stretch a portfolio at least 25 years.

Withdrawing 4% from a $900,000 Roth IRA would give you $36,000 in your first year of retirement. With Social Security, you’d have a combined retirement income of approximately $62,400. Again, this is a tax-free income. But it doesn’t surpass your spending needs by much, limiting your flexibility. More importantly, if your lifestyle or your area in which you live is even modestly more expensive than average, this might not work at all.

You could also consider investing an annuity. With $900,000, a representative lifetime annuity could pay you around $70,440 per year ($5,870 per month), according to Schwab’s Income Annuity Estimator. That would give a combined annual income of about $96,840 (with Social Security).

This may be enough to provide some households with a comfortable standard of living, this income won’t be inflation-protected. As a result, a large portion of your retirement income would lose purchasing power over time. (Whether you need help protecting your money from inflation or evaluating annuity options, consider working with a financial advisor.)

There’s Value in Waiting

Alternatively, you could consider delaying your retirement by just a few years. This may be especially attractive if you want to build more flexibility into your budget so you can afford some luxuries, leisure and travel.

If you delay retirement by three years and claimed Social Security at age 69, your benefit would increase to $32,823 per year ($2,735 per month). Second, at the S&P 500’s 10% average annual rate of return, your Roth IRA could potentially grow to about $1.22 million.

Even if you use a 4% withdrawal rate, your Roth portfolio could generate about $48,880 in your first year of retirement. Combined with Social Security, you’d have $81,712 in year 1. Or, you could invest the whole $1.2 million into an annuity that might pay you approximately $95,000 per year. As a result, you’d have a combined income of more than $127,000 in your first year of retirement.

In both of these cases, delaying retirement would give you much more financial flexibility for a comfortable, sustainable lifestyle. (A financial advisor can help you assess when you can afford to retire.)

Bottom Line

With $900,000 in a Roth IRA and $2,200 per month in Social Security, you may be able to afford to retire at age 66. However, it could mean some tight budgeting and thin margins. Instead, it might be wise to wait just an extra couple of years to let your portfolio and benefits grow a little bit more.

Retirement Budgeting Tips

• Social Security plays a major role in most Americans’ retirement budgets. Figuring out when to claim your benefits is an important step in the retirement planning process. SmartAsset’s Social Security calculator can help you estimate how much your benefits will be at different claiming ages.

• A financial advisor can help you build a comprehensive retirement plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

• Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.

• Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.

Photo credit: ©iStock.com/Charday Penn, ©iStock.com/Vadym Pastukh, ©iStock.com/Wasana Kunpol

The post I Have $900k in a Roth IRA and Would Receive $2,200 Monthly From Social Security. Can I Retire at 66? appeared first on SmartReads by SmartAsset.

Summary

Crown Castle is a domestic communications infrastructure REIT that owns and leases 40,000 towers, 105,000 small cells, and 90,000 route miles of fiber. The average number of tenants per tower in 2024 is 2.4. The company has both single-tenant and colocation towers, and operations in 49 states. While organic growth continues to be driven by tower revenue, the company added about 8,000 new small cell nodes in 2023.

Small cells are comprised of a series of smaller, lower-power antennas, and may be built either indoors or outdoors. They are able to boost wireless coverage in congested regions and extend coverage to hard-to-reach areas.

In 2023, the Tower segment generated about 68% of revenue, with Fiber accounting for about one-third. Within each segment, annual site rental revenues account for about 95% of revenues and service fees for the remainder. About three-quarters of CCI’s tower tenants are large cell phone carriers, with T-Mobile accounting for 36% of site revenues, and AT&T and Verizon 19% each. The company focuses on long-term lease agreements. The weighted-average remaining lease term is about six years, and the average number of tenants per tower is 2.5. About 40% of t