Bonds or stocks? Do both with these investment options

If you’re looking for reliable income in this rough market, dividend stocks and high-yield bonds may be your best bets right now. With President Trump’s pro-energy policies potentially easing infrastructure and prices, the value of these assets is rising.

• Enbridge has enjoyed cash flow for 31 consecutive years with a constant payout ratio of 74%.

• TLT is a top bond ETF investors can add to portfolio stability and long-term security.

• SCHD has returned 15% year-to-date while maintaining a payout ratio of 57-60% among dividend growth companies.

  READ: The analyst named NVIDIA in 2010 Just naming his top 10 AI stocks

• An analyst named NVIDIA just named his top 10 AI stocks in 2010. Get it for free here.

With that in mind, here are three smart options to juice up your portfolio, backed by rock-solid foundations.

Enbridge (NYSE:ENB) is a high dividend stock that I view as a semi-bond proxy in this market. I think this is one of the reasons why this particular pipeline giant has seen its share price rise over the past year, especially as interest rates have declined.

Once a perennial 6-7% dividend stock, Enbridge’s current dividend yield is now around 5.4%. The decline is indicative of the increased interest the energy infrastructure giant has seen in terms of investor interest, with billions of dollars of capital once again flowing into the sector. I think the increase in oil prices that we’ve seen following this heightened geopolitical environment (especially around the Middle East) should bolster demand for Enbridge stock for the foreseeable future.

Now, such cycles are being implemented, and the question many investors will have is what will ultimately come when the dust from these conflicts settles. The reality, he said, is that Enbridge’s revenue and cash flow are closely tied to long-term volume contracts, which are actually exposed to oil prices over time. Thus, while higher oil prices should be beneficial on this front with any contracts that are renewed in the coming months and quarters, the truth is that this is a stable cash cow worth considering in any environment in my view.

In the world of fixed income ETFs, the 20+ Year Treasury Bond ETF (TLT) is one of my top picks on the market right now.

This ETF provides investors with a market-weighted basket of U.S. Treasury bonds with maturities greater than 20 years. Thus, investors can consider very safe, long-term government debt from the likes of 2% to 4.75% coupon issues. With interest rates falling, this ETF, which was launched by BlackRock in 2002 and has about 47 securities, I think long-term investors can own to sleep through the market (which is becoming increasingly difficult to find).

With an expense ratio around 0.15 and a dividend yield north of 4.4%, I think locking in that yield now (and taking advantage of potential capital appreciation as interest rates fall, which is my base case) is a smart move. I think the long-term mix of this fund can provide great growth for investors looking for interest rate sensitivity in such a reduced rate environment.

Additionally, for investors who are worried about drastic corrections or market deterioration associated with recessionary concerns, TLT is a good place to hide. Earning a guaranteed 4.4% yield while waiting for near-term volatility in equities may suit most risk-averse investor profiles.

For manual exposure to share stocks, d Schwab US Equity ETF (SCHD) is one of the top dividend ETFs I think is worth considering right now. In fact, it’s a fund that makes a compelling portfolio position for me, thanks to its high-quality dividend growth holdings.

With a 3.5% dividend yield and a rock-bottom expense ratio of just six basis points (0.06%), this is an ETF that offers some broad exposure to dividend stocks at very reasonable valuations. Additionally, the way this ETF is structured (with a focus on quality) ensures that investors are only in the best quality names on the market. In today’s environment, I would rather discuss quality issues than in the long run.

With a portfolio payout ratio below 75% and strong dividend growth (historically a little less than 4% per year), this is a great ETF for investors looking for full returns and capital appreciation over time. I think SCHD is one of the best diversified dividend ETFs on the market, and it’s a holding I’ll continue to table as interest rates continue to fall over time.

Wall Street is pouring billions into AI, but many investors are buying the wrong stocks. The analyst who first identified NVIDIA as a buyback in 2010 — before its 28,000% run — has identified just 10 new AI companies that he believes can deliver returns beyond that point. One dominates the $100 billion equipment market. Bill addresses the single biggest obstacle to maintaining AI data centers. The third segment is a net play in the optical network market that is quadrupling. Most investors haven’t heard of half of these names. Get a free list of all 10 stocks here.