These 5 REITs Paying Up to 7.0% Will Soar as Rates Fall

Brett Owens, Chief Investment Strategist
Updated: June 14, 2019

Real estate investment trusts (REITs) are simply the best dividend payers you can own right now. These tax loopholes literally “print money” when interest rates fall. So, with Fed Chair Jay Powell signaling that rate easing is on the way, we should load up on real estate dividends.

REITs themselves have flown under cover for years, but “basic” income investors have finally started to wake up to just how effective REITs are. In fact, these income-friendly real estate plays are, quite literally, world beaters.

A Netherlands study examining global assets from 1960 to 2015 found that the top-performing area of the market was not stocks, not bonds, not gold – but real estate investment companies and trusts.… Read more

Exposed: The 6% Dividend The IRS Doesn’t Want You to Buy

Michael Foster, Investment Strategist
Updated: June 13, 2019

This levitating market just might have you thinking there are no more cheap 6%+ dividends out there.

Well, don’t worry, because there certainly are—particularly if you fish in the obscure pool of funds we’re going to dive into today.

It boasts plenty of big payouts of 6% and more. But most folks don’t even consider it, for two reasons:

  • These funds have already soared this year (but one in particular is throwing off a big tax-free dividend and trades for 11% less than its “true” value; I’ll name that fund shortly).
  • These funds’ yields are much higher than they appear.
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This 12.8% Yield is Too Good to Be True (But This 13% Payout Isn’t!)

Brett Owens, Chief Investment Strategist
Updated: June 12, 2019

Most dividend investors understandably love the idea of 10%+ yields. It sure makes retirement easy!

Earn $50,000 per year in dividends alone on a $500K portfolio, or $100,000 annually on a million? Spend your lavish payouts without ever tapping principal? What’s not to like!

Plus, the recent stock market pullback has benefited investors like us because we can snag more dividends for our dollar. Yields are higher overall, and that’s a good thing.

But this strategy is a bit more complicated than simply finding 10% yields and buying them. We must smartly select the stocks that are going to pay our 10%+ dividends securely without tapping their own share prices to pay us.… Read more

3 Steps to Avoid the Next 36% Dividend Cut

Brett Owens, Chief Investment Strategist
Updated: June 11, 2019

Forget the trade war. There’s a bigger danger that too many investors (and especially vulnerable retirees) are ignoring today.

That’s the threat of a snap dividend cut—and the massive damage it can do to your income and your nest egg.

More on that—and 4 imminent dividend cuts you need to dodge now—shortly.

Why I’m Sounding the Alarm

First, there are two reasons why folks are sleepwalking along, wrongly thinking all of their dividends are safe:

  • The economy is strong, churning along at a 3.1% rate—lulling most folks to think that only the worst companies would be forced to slash payouts.
  • The Fed’s kabuki theater: After being set on raising rates last year, Fed Chair Jerome Powell is signalling a rate cut.
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3 Simple Steps to 73% Gains and 6% Dividends (starting now)

Michael Foster, Investment Strategist
Updated: June 10, 2019

What if I told you I’d found a way for you to bank 7%+ in cash (often paid monthly, no less) from real estate?

And no, we’re not going to send you out on the streets, pounding the pavement with your real estate agent, trooping through one disappointing house after another. And you won’t have to deal with deadbeat tenants, plugged toilets or noise complaints, either.

You’ll have just one job: collect your dividends!

One more thing: we’ll run our “one-click” property play from the safety of our brokerage account, which we can do thanks to a high-yielding investment called a real estate investment trust (REIT).… Read more

Weekly Market Summary: New Month Brings New Investor Sentiment

David Peltier, Senior Investment Analyst
Updated: June 8, 2019

U.S. investors appeared more than happy to turn the calendar to June this week. After the Nasdaq Composite reached correction territory on Monday, the broader stock market averages rebounded more than 2% across the board on Tuesday.

Even with 5% tariff on Mexican imports set to go in effect on June 10, the initial recovery sparked a multi-day rally. The rebound was ignited by the realization that the FOMC would be more likely to step in and lower interest rates, to better reflect market pricing in the Treasury yield curve.

The May jobs report on Friday was another case where “bad news is good for stocks”.… Read more

The Next GameStop? 5 Zombie Dividends Up to 13.3% (Sell Now)

Brett Owens, Chief Investment Strategist
Updated: June 7, 2019

I told you GameStop’s (GME) dividend was toast. Did you sell, or better yet, short the stock?

Just one quarter ago, we chatted about the inevitability of this paper payout ending in tears:

Brick and mortar video game retailer GameStop (GME) is a throwback to yesteryear. It’s survived the rise of digital distribution for video games thus far because Microsoft, Sony and Nintendo haven’t fully digitalized their sales. (In other words, they still sell physical boxes that are bought at stores like GameStop.)

 

But this sales model is ultimately toast and GameStop doesn’t have a convincing second act.

Read more

This $11 Fund Is Set to Skyrocket (and it yields 9%!)

Michael Foster, Investment Strategist
Updated: June 6, 2019

The most worrying recession indicator I know of is now shining bright red.

And now is the time to buy stocks.

I know that sounds like a blatant contradiction. Let me explain—then I’ll reveal a closed-end fund [CEF] yielding an amazing 9% and set to skyrocket in the coming 12 months.

Recession Signal Switches On

The recession indicator I’m talking about is called the “inverted yield curve.”

It sounds like technical jargon, but the idea here is straightforward. The term refers to the different rates bondholders get on different US Treasury issues; this has big implications for the stock market.… Read more

Are These mREIT Dividends (Up to 13%) Safe?

Brett Owens, Chief Investment Strategist
Updated: June 5, 2019

In a word… no.

Interest rates are plummeting, which is usually “prime time” for mREITs like Annaly Capital (NLY). The “original mortgage REIT” has traditionally held fixed-rate securities, which rise in price as rates decline.

Annaly investors remember the “roaring ‘00s” fondly. From 2000 through 2012, mortgage rates ticked down, down, down while the stock climbed higher and higher:

The Roaring ‘00s (and Beyond) for Annaly Investors

While Annaly delivered total returns of 609%, its yield bounced between a handsome 10% and a gaudy 15%. What a run!

Of course, even the best party has its lulls. This happened when then-Fed chair Alan Greenspan began raising rates in the summer of 2004.… Read more

Revealed: The 4X Income Secret

Brett Owens, Chief Investment Strategist
Updated: June 4, 2019

I know I don’t have to tell you it’s tough (and very frustrating) trying to get any kind of income stream from your savings these days.

The average S&P 500 stock yields just 1.9%. That’s not even enough to cover inflation!

Treasuries? The 10-year note yields an almost equally pathetic 2.3%.

But there are still safe 7%+ dividends to be had—even in the “income desert” we’re living in now. I’ll show you three funds yielding up to 8.5% (more than 4 times the typical S&P 500 yield) in a second.

Dividends like those can let you clock out on a nest egg that’s far smaller than advisers say you need.… Read more