Hello, YieldAlley readers! In this issue:

• 2024 Year in Review: Building Wealth Through Income Generation

• U.S. Markets End Higher In Holiday Week As Consumer Confidence Shows Warning Signs

• A roundup of other 2024 roundups!

• And more!

NEWS

Standout Stories (Other 2024 Roundups!)

🛜 Google’s Year in Search 2024 (Google)

📰 WSJ’s The Biggest News Stories of 2024 (WSJ)

🧑‍💻 Bloomberg’s 2024 Year in Graphics (Bloomberg)

📱 The Verge’s 2024 in review (The Verge)

📈 A Year-End Portfolio Review for 2024 (Morningstar)

MARKET THOUGHTS

U.S. Markets End Higher In Holiday Week As Consumer Confidence Shows Warning Signs

• Market momentum shows divergent holiday trading patterns:

  • S&P 500 adds 0.7% to reach 25.2% YTD gain

  • Nasdaq continues leadership with 31.4% yearly return

  • Large-cap growth stocks lead early week gains

  • Mid-week reversal highlights profit-taking pressure

• Consumer confidence reveals concerning economic signals:

  • Index falls to 104.7 from 112.8, ending recent rebound

  • Expectations component drops sharply to 81.1, near recession signal

  • Present situation and outlook both deteriorate

  • Two-year confidence range suggests persistent uncertainty

• Economic indicators show mixed fundamentals:

  • Durable goods orders decline 1.1% versus expected rise

  • Initial jobless claims improve to 219,000, showing labor resilience

  • Continuing claims reach 1.91 million, highest since 2021

  • New home sales maintain steady 664,000 pace

• Bond market reflects growth-inflation dynamics:

  • 10-year Treasury yield touches 4.641% amid light trading

  • High-yield bonds show modest strength on stable backdrop

  • Primary market remains quiet through year-end

  • Trading volumes reflect seasonal patterns

• Year-end positioning suggests cautious optimism:

  • Broad market gains reflect strong fundamental backdrop

  • Consumer warning signs warrant monitoring

  • Labor market shows early transition signs

  • Trading patterns suggest selective positioning

INCOME BUILDING

2024 Year in Review: Building Wealth Through Income Generation

In 2024, YieldAlley explored multiple aspects of income investing, from timeless fundamentals to cutting-edge strategies. The goal remains simple: help investors build reliable income streams while protecting and growing their capital over time. If these insights have helped you navigate the markets this year, consider sharing YieldAlley with friends and family who might benefit from learning about income investing.

Dividend Investing & Analysis

While markets swing up and down, dividend investing helps provide stability through regular income payments. But success requires careful analysis - avoiding dividend traps, understanding payout sustainability, and not chasing unsustainable high yields. These articles help you build a resilient dividend portfolio that can weather different market cycles.

The DDRM (Dividend Drill Return Model) Series

When analyzing dividend stocks, it's crucial to look beyond just the current yield. This series provides a systematic framework to evaluate dividend sustainability, growth potential, and risks - helping you avoid costly dividend cuts while identifying companies that can grow their payments over time.

• Dividend Drill Return Model Fundamentals (Part 1) (Jul 13)

• Understanding DDRM Inputs (Part 2) (Jul 20)

• Calculating Dividend Growth Potential (Part 3) (Jul 27)

• Interpreting DDRM Results (Part 4) (Aug 3)

• Practical DDRM Case Studies (Part 5) (Aug 10)

Core Dividend Strategy & Education

Understanding the foundations of dividend investing helps protect you from common pitfalls. These articles explore why dividends matter, how to analyze payout safety, and ways to generate growing income without taking excessive risks. The focus is building sustainable income streams rather than chasing the highest yields.

• Dividend Income vs. Growth Portfolios: How We Think About Them (Apr 6)

• How to Use Dividend Reinvesting (DRIPs) To Boost Your Returns (Jun 1)

• Academics Say Dividends Are Irrelevant — And Why They're Wrong (Jun 15)

• Dividend Investing in Today's Stock Market (Jun 22)

• The 5 Key Factors to Evaluate Dividend Safety (Jun 29)

• Use This Framework to Understand Dividend Growth Potential (Jul 6)

• Post-Election Dividend Income Strategies In a Shifting Market (Nov 9)

• The Real Deal About Dividend Investing & Why Smart People Disagree (Nov 16)

• The Best Age to Start Dividend Investing Isn't What You Think (Dec 7)

• Three Pillars of Sustainable Dividends and Reliable Income Stocks (Dec 14)

Dividend Stock & ETF Analysis

Throughout the year, we examined specific dividend-paying companies and ETFs, providing detailed analysis of both traditional dividend payers and emerging dividend stories in the technology sector. Our coverage included landmark events like Alphabet's first dividend and deep dives into popular ETFs like SCHD.

• How The Dividend Aristocrats Can Make You Wealthy (Mar 23)

• The 5 Highest Yielding Dividend Aristocrats (Mar 30)

• Seeking Dividend ETFs With Growing Payouts (Apr 13)

• Alphabet Announces Its First Ever Dividend (Apr 27)

• Top 10 Dividend Paying Technology Companies (May 11)

• Investors Expect Dividends From Big Tech (May 18)

• Nvidia's 150% Dividend Increase Isn't That Meaningful (Jun 8)

• Warren Buffett Loves Dividends — But He Doesn't Pay One. How Come? (Sep 7)

• SCHD Deep Dive: The Dividend ETF That's Capturing Investors' Hearts (Sep 21)

• Understanding Business Development Companies for Income Investors (Sep 28)

• 150 Years of Corporate America Dividend History (Nov 30)

Fixed Income & Cash Management

In a year marked by shifting interest rates and yield opportunities, bonds and cash alternatives can offer compelling yields without the volatility of stocks. But navigating interest rate risk, credit risk, and tax implications requires careful analysis.

Fixed Income Analysis

Treasury bills, corporate bonds, municipal bonds - each fixed income security comes with its own risk-reward profile. These articles help you understand different bond types, evaluate their risks, and build a fixed income portfolio that balances yield with safety.

• High-Grade Bonds Offering Attractive Value Over Stocks (May 25)

• Buy I Bonds Today or Wait For Later? (May 4)

• 8 Crucial Risks Every Bond Investor Must Understand (Aug 24)

• Is It Still a Good Time to Buy T-Bills and Bonds? (Sep 14)

• Some Fixed Income Options to Consider (Outside of T-Bills) (Oct 5)

• Our Thoughts on Investing in Agency Bonds vs. U.S. Treasury Bills (Oct 12)

• Corporate Bonds Offer Unique Opportunities (Oct 19)

• Municipal Bonds Can Offer Triple-Tax-Free Income for Smart Investors (Oct 26)

• BOXX ETF: Treasury Returns Without the Taxes? (Mar 9)

• Are T-Bills More Risky Than FDIC-Insured Savings? (Feb 10)

Cash Management

With high yields available in cash alternatives, we focused on helping investors optimize their cash holdings and understand the various options for generating income from cash positions.

• Low-Hanging Yield Opportunities To Start 2024 (Jan 5)

• State-Tax Exemptions Can Be a Hidden Boost to Your Cash Returns (Jan 12)

• Are High-Yield Savings Accounts Worth It? (Jan 20)

• Core Principles for Cash Investments (Jan 27)

• Structural Alpha: How "The Bond King" Outperformed the Market for 20 Years (Feb 17)

• How to Replace Your Bank Account (Mar 16)

• Americans Are Tired of 0.01% Yields (Apr 20)

Portfolio Strategy & Risk Management

Beyond specific investment types, we explored broader themes in portfolio construction and risk management, helping investors build resilient portfolios aligned with their goals and risk tolerance.

• A Brief Introduction to Income Investing (Feb 3)

• The 5+5 Portfolio For Simple Dividend Investing (Nov 23)

• The Progression of The Income Investor (Feb 24)

• How to Find Fund Managers That Eat Their Own Cooking (Mar 2)

• What To Do When Your Financial Advisor Pushes Your Risk Tolerance Beyond Comfort (Aug 17)

• Will Lower Interest Rates Affect Your Retirement Portfolio? (Aug 31)

• Politics and Your Investment Strategy: A Clear-Eyed Perspective (Nov 2)

• The 90/10 Portfolio Myth: Is Your Retirement Strategy Too Aggressive? (Dec 21)

Looking Ahead to 2025

The markets never stop evolving, but certain principles remain timeless: focus on quality over yield, maintain discipline through market cycles, and always understand what you own. Whether rates rise or fall, whether markets surge or decline, a well-constructed income portfolio can help provide stability and growing cash flow over time.

Key themes we've explored this year remain relevant:

• Dividend sustainability matters more than current yield

• Fixed income deserves a fresh look in a higher-rate world

• Portfolio construction and risk management drive long-term success

• Cash management can meaningfully boost overall returns

• Quality and discipline beat reaching for yield

Stay tuned in 2025 as we continue exploring opportunities in dividend stocks, fixed income, and other income-generating investments. Together, we'll keep building portfolios designed to deliver reliable income through all market conditions.

We wish you and your family a very happy holiday season, and we look forward to seeing you in the new year!

INCOME BUILDING

Cash Rates

Government Money Market Funds (7-Day Yields)

• SNVXX (Schwab Government Money Fund - Investor Shares): 4.18%

• SPAXX (Fidelity Government Money Market Fund): 4.10%

• TTTXX (BlackRock Liquidity Funds: Treasury Trust - Institutional Class): 4.32%

• VMFXX (Federal Money Market Fund): 4.40%

Brokered CD Rates (6-Month Rate)

• Charles Schwab: 4.24%

• E*Trade: 4.20%

• Fidelity: 4.20%

• Merrill Edge and Merrill Lynch: —

• Vanguard: 4.20%

ETFs (30-Day Yields)

• SGOV (iShares 0-3 Month Treasury Bond ETF): 4.44%

• BIL (SPDR Bloomberg 1-3 Month T-Bill ETF): 4.41%

• USFR (WisdomTree Floating Rate Treasury Fund): 4.49%

• TFLO (iShares Treasury Floating Rate Bond ETF): 4.43%

BONUSES

Brokerage, Bank and Credit Card Bonuses

Brokerage Bonuses

• E*Trade (still active): Up to $6,000 in bonuses for deposits made within 60 days of enrollment. Offer here.

  • Use promo code OFFER24.

    • $1,000+ will receive $50

    • $5,000-$19,999 will receive $150

    • $20,000-$49,999 will receive $200

• tastytrade (still active): Offering up to $5,000 in bonuses. Lower deposit bonuses are attractive, with a $100 bonus for a deposit of $5,000 (2% return). Offer here.

• Robinhood (still active): Offering a 1% bonus for transferring any table brokerage holdings. No maximum, but deposits must be held for two years after account opening. Offer here.

Bank Bonuses

• Capital One (new) — Earn a $300 bonus when you open a new checking account and use promo code OFFER300 and set up and receive at least 2 direct deposits, each of $500 or more, within 75 days of account opening. Offer here.

  • Availability: Nationwide

  • Soft credit inquiry

Credit Card Bonuses

• Chase Ink Preferred (active) — Get 120,000 Ultimate Rewards bonus points when you spend $8,000 in the first three months after account opening. Offer here.

• American Express Hilton Surpass Card (active) — 150,000 points Hilton Honors points after spending $2,000 in 3 months. Get an additional 50,000 points after spending a total of $10,000 within the first 6 months. Offer here.

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