Cash Income Opportunities

News and Opportunities

• Investors are betting that rate cuts will be delayed, as inflation in the U.S. economy showed little signs of letting up. A key inflation metric tracked by the Federal Reserve (personal consumption expenditures price index excluding food and energy) increased 2.8% from a year ago in March. This was higher than expected. (FT) Given red-hot economic indicators, expectations of multiple rate cuts in 2024 have drastically plummeted. For us, this means continuing to observe mid to long-term bond yields while taking advantage of short-term yields of over 5%.

• Money market fund assets climbed to $5.98 trillion this week. This was driven by increased demand from institutional funds, which expect short-term rates to remain high. This also coincides with tax season winding down (Bloomberg). Tax season meant many investors were paying taxes from cash parked in money market funds. However, with tax season ending and lower expectations for an interest rate cut, investors are still piling into money market funds for 5% yields.

• In the latest Treasury auction last week, the 5-Year TIPS fetched a real yield of 2.242% and an interest rate of 2.125%. This is the second-highest real yield in over 15 years. (TreasuryDirect)

• The 1-year Treasury rate now sits at 5.212%, compared to 5.035% a month ago.

• Reminder: Series I Savings Bonds will undergo an inflation adjustment on Wednesday, May 1st, 2024. We expect the new variable inflation rate to be 2.96%, lower than the 3.94% inflation rate currently reflected in I Bonds. I Bonds can be bought on TreasuryDirect, and you can read this article for a refresher.

• The highest-yielding 6-month CD rate on Schwab has increased to 5.37% from 5.32% last week, reflecting the general increase in yields in the fixed-income market.

• Ultra Short-term Treasury Bill and Floating Rate Note ETFs still offer the best combination of yield (USFR and TFLO are paying over 5.30%) and liquidity.

All brokerage cash guides and playbooks can be found on YieldAlley.com.

Dividend Income Opportunities

News and Opportunities

• On its earnings call last week, Alphabet (Google's parent company) announced its first-ever dividend of $0.20 per share per quarter. Co-founder Sergey Brin will get a $148 million dividend payout every quarter, while co-founder Larry Page will receive $156 million. Alphabet is the fourth major technology company to introduce a dividend in 2024. (YieldAlley)

• MetLife raised quarterly dividends by 4.80% to $0.545/share. MetLife has increased its common stock quarterly dividend at an 8.7% compound annual growth rate since 2011. (Company)

Bank Bonuses, Best CD and HYSA Rates

Certain people want to take advantage of bank bonuses, and promotional CD and high-yield saving account rates. Banks often tie these promotional rates with specific terms or fees and may change rates at any time. While we recommend passive investors who want to earn a yield to hold brokered CDs, money market funds, or floating rate ETFs, we list some of the best offers we discover here.

As always, we highly recommend reading the fine print with these offers. We earn no money from these offers. Please check past emails for older deals.

Bank Bonuses

• MyUSA Credit Union — $200 checking bonus paid within 120 days when you open a new checking account. You must have an account open for 210 days; otherwise, the bonus is forfeited.

  • Availability: Live/work/learn in Butler, Clark, Greene, Miami, Montgomery, or Warren County in OH only

  • Ohio credit inquiry.

  • Offer here.

• Citizens Bank — $500 bonus when you open a new savings account and deposit $10,000 for five months or $250 if you deposit $5,000 for five months.

  • Availability: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, VT, VA, D.C., MD, FL

  • Soft credit inquiry.

  • Offer here.

Promotional Bank CD and HYSA Rates

• MyBankingDirect – 5.55% APY high-yield savings rate with a $500 minimum deposit. Offer here.

• Poppy Bank – 5.50% premier savings. This rate is guaranteed for only three months and requires a minimum balance of $1,000. Offer here.

• Western Alliance – 5.36% high-yield savings with a $500 minimum deposit. Offer here.

Credit Card Bonuses and Offers

Credit card signup bonuses are one of the easiest ways to earn extra income, as long as you are vigilant in managing payments, your credit score, and claiming bonuses. We know some of our readers are interested in the latest credit deals.

As always, we highly recommend reading the fine print with these offers. We earn no money from these offers. Please check past emails for older deals.

• Chase Aeroplan Card: Earn 70,000 points after you spend $4,000 in the first three months plus 30,000 points after you spend $20,000 in the first 12 months. Offer here.