Since my investment objective is to generate a passive income stream from various investments, I tend to look at those securities (stocks, funds, ETF’s) that pay a healthy dividend. One interesting and promising approach to dividend investing is a mutual fund that sticks out from all the rest, the Alpine Dynamic Dividend Fund (ADVDX) managed by Jill Evans and Kevin Shacknofsky of Alpine Funds. It is a unique mutual fund in that a part of it’s strategy is something called dividend rotation, which allows for the funds 13.57% annual yield, far greater than any other dividend oriented equities in my portfolio. In addition to rotation, the fund also invests globally in stocks that pay special dividends by, again, applying the technique to buy the stock at the right time to collect the high dividend payout. ADVDX is a well run fund that has truly reinvented the process at going after all the dividend income they can.
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Real estate investment trusts also known as REITs are a type of corporation that, must invest only in real estate. Investing in REITs enables individual investors to participate in income-producing real estate investments without owning physical real estate. REITs do not have to pay U.S. federal income tax as long as they pay out at least 90% of their income in the form of dividends to their shareholders. To qualify as a REIT, a company must meet the following requirements:

• its assets must consist mainly of real estate held as a long-term investment
• its income must be mostly derived from real estate
• it must pay out a minimum of 90% of its taxable income to it’s shareholders

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A Roth IRA account is absolutely indispensable, and one of the smartest money moves anyone can make. It is a very convenient way to give yourself access to a stream of tax free income during retirement. Unlike a traditional IRA, where your annual contributions are often tax-deductible and earnings are taxed, contributions to a Roth are taxed, but the earnings are tax-free. If a 25-year-old contributes $5,000 each year until he/she retires and makes an average annual return of 8% on his/her investment, he/she will have $1.4 million saved by the time he/she retires at age 65. And the cash is all yours since it’s completely tax-free!
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