Author Archive: Brett Owens

The broader market is expensive right now. Price-to-earnings (P/E) ratios in the 20s and even 30s and higher are the current “norm.”

No thanks—we’ll take a look in the bargain bin.

Today we’ll discuss a four-pack of dirt-cheap dividend payers dishing between 4% and 9.2%. They are much cheaper than their peers. Check it out:

• The S&P 500’s forward P/E (22.2) has only been this high twice in the past 40 years: the COVID bottom and recovery, and the dot-com bubble and burst.

• The small-cap Russell 2000’s forward P/E (26.5) isn’t in as rarefied air, but it’s still near the top of its historic long-term range.

Real estate investment trusts (REITs) tend to shine when there is a lid on interest rates. And that rate top is secure, for reasons we’ll review shortly.

Net lease REITs, in particular, are compelling here. They are the boring landlords of the real economy. (Yawn? Love that reaction from vanilla income investors!)

The net lease landlords own the pharmacies down the street, the big-box retailers at the busy intersections, and the warehouses and distribution hubs we pass on the highway. These REITs sit back and collect rent checks while the tenants pay their own way.

Here’s how the business model works:

1. The REIT buys the property and builds (or renovates) the facility to rent out.

This administration is set on cutting interest rates—and they have the tools to do it.

The last thing we contrarian income investors want to do is fight Uncle Sam. Instead, we’re going to front-run his moves with an 11% payer that’s set up nicely for what’s coming.

The reason behind the lower-rate push is pretty obvious: 2026 is an election year, and the administration wants lower borrowing costs heading into the vote.

Bessent, Not Powell (Or Warsh) Is the One to Watch Here

Most people think Jay Powell, or newly nominated Fed chief Kevin Warsh, are the lynchpins here. But when it comes to rates, the real power lies with Treasury Secretary Scott Bessent.… Read more

New tariffs. A government shutdown. A brutal selloff in the software sector with speculation that AI will eat everything in its wake.

Concerned about a pullback? An outright bear market? Fair enough and, if so, let’s talk about beta.

Low beta stocks are our best friends for surviving a bear market. Stocks with betas below 1 are considered less volatile than the overall market. For example, we’d expect a stock with a beta of 0.5 to drop only half as much as the S&P 500 during a pullback.

Let’s consider low-beta fund iShares MSCI USA Min Vol Factor ETF (USMV), which did its job in the leadup to the “Liberation Day” panic last year.… Read more

“Wheel of Fortune”, Sally Ride, heavy metal suicide

Foreign debts, homeless vets, AIDS, crack, Bernie Goetz

Hypodermics on the shore, China’s under martial law

Rock and roller, cola wars, I can’t take it anymore

Billy Joel had had it with, well, everything geopolitical when he belted these lyrics to his latest number one hit in 1989. We Didn’t Start the Fire reached number one on the Billboard Hot 100 chart for two consecutive weeks, teaching listeners:

It was always burning since the world’s been turning.

And while Fall Out Boy gave us a worthy sequel “cover” of Joel’s hit in 2023 (encompassing Harry Potter to Brexit), the headlines have already lapped them.… Read more

Most people are totally missing the point on the AI trade. To use a hockey analogy (it is the dead of winter, after all!), they’re skating to where the puck is, not where it’s going.

They’re debating whether Meta Platforms (META) or Microsoft (MSFT)—which took a header last Thursday—are spending too much on AI, or whether all of this cash is pumping air into a stock-market bubble. Or whether OpenAI will turn out to be the Netscape of AI—jumping out to an early lead only to lose out to a competitor.

Distractions. All of them.

Big Tech is so 2025.… Read more

Quarterly-paying dividend stocks? Ha!

We save those for the poor vanilla investors. Give us the monthly payers—those that dish divvies every 30 days.

Today we’ll discuss four monthly payers yielding between 5% and 11% per year. An average yield of 7.9%.

This means a $500,000 investment portfolio can buy this four-pack, earn $39,500 per year in dividend income alone and keep principal intact.

Better yet, the payments show up in neat monthly installments. No need to wait 90 days to get paid. The “checks” show up every 30!

Let’s contrast our monthly dividend strategy with the tried, true and (let’s be blunt) inferior techniques employed by unimaginative Wall Street suits who jam their clients into standard broad-based bond funds (or worse, a cheesy 60/40 portfolio):

The advantages of monthly payers are many:

1. We cut down on “lumpy” portfolio income.

“And what can we do to get better shots?”

Your fulltime income strategist and part-time basketball coach asked his team of fifth and sixth graders for their ideas. Or, at least, tried to.

Then a ball bounced. After coach specifically said hold balls for a second time. This third infraction ended the conversation.

“That’s it—on the line. Start running.”

When coach says run, the players don’t really have a choice. Get moving in practice or lose playing time in the games they all love.

Likewise, when the government tells an industry that there is a cap on their profits, well, they’d better get moving too.… Read more

Natural gas prices are ripping. And we’re going to play it through a “contrarians-choice” 5.9%-payer whose stock is headed in the other direction.

This is a perfect contrarian setup, and I don’t expect it to last.

I’m talking about Enbridge (ENB), whose share price has lagged in the first few weeks of 2026, even as gas prices went to the moon:

Gas Soars—and Enbridge Gives Us an Opening

To be sure, this gas-price spike is driven by the arrival of a “generational” winter storm here in the US. But it’s a sign of things to come, as gas demand is not going anywhere.… Read more

New year, new dividends. And today we’ll review seven brand new payouts.

Why are new divvies potential money makers? Because companies love to deliver big raises out of the gates to reward shareholders.

And to be honest, it doesn’t cost them much. These current yields are often modest, so they have room to grow.

But in percentage terms, these payout pops look impressive. And with gaudy growth numbers comes the “momentum” buyers, who often bid these stocks up, up and away.

Which sophomore dividends are likely to impress soon? Let’s discuss.

Tutor Perini (TPC)
Dividend Initiation Announcement: Nov. 18, 2025
First Dividend Payment: Dec.… Read more