Author Archive: Brett Owens

Chief Investment Strategist

Stock Market Crash 2022 Update: It’s Hammer Time

Brett Owens, Chief Investment Strategist
Updated: July 6, 2022

You’ll probably get hyped, boy, ‘cause you know you can’t 
You can’t touch this
Ring the bell, school’s back in
Break it down!
Stop, Hammer time!

Rapper and dancer Stanley Kirk Burrell—better known as MC Hammer—penned this poetic verse in his 1990 hit “U Can’t Touch This.” (Rick James shares songwriting credits, by the way, because Hammer borrowed James’ opening riff from “Super Freak.” Thanks to Wikipedia for clarifying something I’d always wondered about but never took the time to look up.)

Been awhile since you thought about Hammer? Maybe it’s time to start tuning your dial over to the 90s on 9 and Downtown Julie Brown next time you make a trade.… Read more

Confession of a Die-Hard Dividend Fan: “Dividend Yields Mean Nothing”

Brett Owens, Chief Investment Strategist
Updated: July 5, 2022

A stock’s current yield holds an almost untouchable place in most investors’ minds. But here’s the thing: it’s lying to you.

My take: you’re much better off going by a company’s shareholder yield, which tells the full story on the payout we get.

Shareholder what?

We’ll get into exactly what shareholder yield means for us in a second. But we first need to look at how going by a stock’s current yield alone can steer you into a ditch.

Lumen Technologies Shows How a High Yield Can Be a Trap …

Consider regional telecom operator Lumen Technologies (LUMN), which we discussed last week in our third article on my proven “Dividend Magnet” investing strategy.… Read more

47 Ways to Squeeze Out Larger Dividends Each Year

Brett Owens, Chief Investment Strategist
Updated: July 1, 2022

Some of the greatest dividend growers on the planet are cheaper than they’ve been in many years. Plus, these blue-chip yield machines finally pay.

The problem with bull markets is that they whittle yields down to nothing. Enter the bear, a dividend growth investor’s best friend. These fantastic stocks are finally in the bargain bin.

Today we’re going to do more than highlight one or two. We’re going to fawn over 47 companies about to raise their dividends.

These stocks are set to grow for years to come thanks to their “dividend magnets.” This is a tactic used to identify a three-pronged way to win with stocks:

  1. Growing payouts = growing yields over time.
Read more

Listen to Bob Barker, Not Jay Powell, On Inflation

Brett Owens, Chief Investment Strategist
Updated: June 29, 2022

Just when I thought 2022 couldn’t get any stranger, my inflation research led me to a bold but inescapable conclusion. We’re living a financial prophecy foretold by the gameshow The Price is Right.

Cliff Hangers, to be specific, teaches the 2022 monetary scene perfectly.

The contest features a climber moving from left to right along an upward-sloping mountain, with a scale of 0 to 25. The contestant bids on a few household items, and the climber moves by the number of dollars the guess misses by.

A perfect bid and the climber will stay put. Off by $10, and the climber will move up 10.… Read more

How My “Dividend Magnet” Strategy Helps You Dodge Payout Cuts

Brett Owens, Chief Investment Strategist
Updated: June 28, 2022

Most investors ignore the “magnetic” connection between dividends and share prices. It’s causing them to miss out on huge gains—and setting them up for big losses, too.

Here’s what I mean: in my earlier article in our ongoing series on my “Dividend Magnet” approach to investing, I gave you example after example of how a rising dividend almost inevitably drags a company’s share price up with it.

This is one of the main reasons why we demand a dividend that’s not only growing but accelerating in my Hidden Yields dividend-growth service.

It’s clear as a bell in the chart of Texas Instruments (TXN), below, one of the examples we discussed in our previous article.… Read more

A Nearly 13% Portfolio Yield, Paid Monthly? Come On.

Brett Owens, Chief Investment Strategist
Updated: June 24, 2022

Patience is the key to being a successful contrarian investor.

We buy when fear is widespread. Bear markets are our friends. Let’s sit back and let the market’s valuations come down to us.

I wrote very recently that the market is this close to sending out a market-wide buy signal. Let’s get ready to back up the truck.

Today, we’ll discuss targets for retirement income yielding a ludicrous 12.9%—after all, a self-sustaining portfolio that allows you to live off dividends alone can give you enormous peace of mind once you’re past your working years.

And if those dividends land in your mailbox or account every 30 days or so, matching your monthly bills…well, that’s even better.… Read more

Did the Stock Market Bottom Last Week?

Brett Owens, Chief Investment Strategist
Updated: June 22, 2022

Have we seen the lows yet?

Well, we’re oversold and due for a rally. Overdue, really. (Stop me if you’ve heard this before…)

Assuming we get a bounce, I’m still inclined to sell any rips higher that we see.

Someday we’ll buy this dip. Heck, we’ll back up our dividend truck. I just don’t think it’s time yet.

First, I’d like to see market breadth begin to improve under the surface. This is often what typically happens before markets bottom. We see individual stocks begin to “act better” than the Dow or S&P. These leaders quietly establish their lows and begin to rally.… Read more

Here’s Our Trading Plan to Survive the Storm, Grab 7%+ Dividends

Brett Owens, Chief Investment Strategist
Updated: June 21, 2022

Look, I’m as ready for this selloff to end as you are. And when stocks drop—sending dividend yields skyward—I so badly want to back up the truck.

As value-focused dividend investors, buying dips is what we live to do. Sitting in cash is agonizing to me, as I’m sure it is to you, too.

But it just isn’t time yet. Which is why I’ve recommended just one stock this year in my Contrarian Income Report service, while urging my readers to stockpile cash. And after last Thursday’s dumpster fire, we’re sure glad we did!

We’ve also lightened up our portfolio over these last few months, including taking some nice profits on three bank stocks we sold in May:

There was nothing wrong with these three: they were just benefiting from the Fed’s injection of cash into the markets, and the gap between the 10-year Treasury (at which they lend to clients) and the Fed’s policy rate (at which they lend to each other).… Read more

Where to Find 10% Yields at 20%-30% Discounts

Brett Owens, Chief Investment Strategist
Updated: June 17, 2022

Get your dip-buying lists ready, because it’s almost time to pounce.

Just recently, I explained to investors that, as a contrarian, we only want to fully dive into the market when we have a clear edge—the kind of edge you get when Wall Street has fully capitulated:

“We only want to fully invest when the regular investor has thrown in the towel. And there are plenty of indicators that can tell us exactly when our time has come. Consider, for example, the closely watched CNN Fear/Greed Index, which sits at 26 as I write.”

That was just a week ago.… Read more

Is This the Dividend Trade of the Decade?

Brett Owens, Chief Investment Strategist
Updated: June 15, 2022

Attention, growth investors! A quick stock market question for you.

(Dividend people, you are welcome to play, too.)

Take a quick peek at the chart below. The lines are revenue gains over the past twelve months for four stocks.

Three of them are top holdings in ARK Innovation ETF (ARKK). The fourth, well, is a contrarian special that careful readers already know. (Hint, hint.)

Which sales curve would you want to own?

Pick Your Growth Stock

Did you peek at the key? Of course you did. Well, were you surprised that Exxon Mobil (XOM) was running laps around these three laggards?… Read more