Author Archive: Brett Owens

While most income investors are reaching for big yields right now, a small group of “hidden yield” stocks are quietly handing smart investors growing income streams plus annual returns of 12%, 27.1% and even 54% or more per year.

So if you want to double your money every few years – and double your income as well – then you need to focus on the seven stocks I’m about to share.

(All seven are about to hike their dividends. Yet the “forward-looking market” hasn’t yet priced in these payout raises. This is free money the market is giving us, thanks to the most “underrated” shareholder return vehicle.)… Read more

“First-level” investors – those who buy and sell on headlines – mistakenly believe that real estate investment trust (REIT) profits will suffer if rates continue to rise. They’re wrong. This is actually an ideal time to buy the strongest names in the sector.

Note that I said strongest. The sector’s popular proxy is something you should avoid, despite its popularity. I’ll call it out in a moment.

Overall, rising rates are actually good for the best REITs because it signals a rolling economy. These landlords have no problem raising their rents when their tenants are making money.

Unfortunately, the business world is increasingly becoming a neighborhood of “haves” and “have nots.”… Read more

Today, the 10-year Treasury pays just 2.7%. Put a million bucks in T-Bills, and you’re banking $27,000 per year. Barely above poverty levels!

Hence the appeal of closed-end funds (CEFs), which often pay 8% or better. That’s the difference between a paltry minimum-wage income of $27,000 on a million saved or a respectable $80,000 annually.

And if you’re smart about your CEF purchases, you can even buy them at discounts and snare some price upside to boot!

Unfortunately this rising-rate environment has income seekers scared of CEFs. Many of my readers have asked me if they should bail on our high paying vehicles.… Read more

Had enough market drama? If so, it’s time to trade in your overly-sensitive stocks for some domestic cash cows paying 5% or more.

I’ll show you how to find these secure yet somewhat-obscure payers in a minute. They are ideal income investments (especially today) because…

• Their monthly payments are comfortably powered by secure cash flows,
• They pay us more than Treasuries (5%+), and
• Their coupons reset higher as rates rise.

Facebook’s folly, the Fed’s latest murmurs and even trade tariffs are mere noise in this corner of the income universe. Cash is king in these parts, and these firms have plenty to cover your yield no matter what Zuck mumbles to Congress or how much China taxes pork.… Read more

The 10-Year Treasury yield is holding at 2.85%, but another run to 3% is coming soon. Let’s use this breather to sell our weakest dividends and replace them with stocks that should actually head higher as rates rise.

You know the playbook by now. When the 10-Year yield rallies, it crushes stocks with pathetic yields or meager dividend growth. These “bond proxies” get dumped for the real thing as first-level investors scamper to the 3% yields on “safe” US government debt.

If your portfolio relies on laggards like these—I’m talking about penny-a-year hikers like AT&T (T) and Walmart (WMT), or stocks that haven’t hiked their payouts in years, like Wynn Resorts (WYNN)—I have two words for you:

Sell now!… Read more

Real estate investment trusts (REITs) are as cheap as they’ve been since the financial crisis right now. The sector as a whole has been battered for more than half a year, driving yields on the Vanguard REIT ETF (VNQ) to their highest point since 2009:

The REIT ETF VNQ Pays Nearly 5% Today…

If you bought REITs then, you doubled your money in less than four years:

… A Bullish Sign for Those Who Like 100%+ Gains!

And while this may be a fine time to buy VNQ, there are even better deals to be had amongst the “niche” landlords – both in, and outside, of the benchmark REIT index.… Read more

The Fed funds rate is 0.25% higher now than it was this time last week. What does this mean for our income investments – especially our monthly dividend payers?

We’ll explore in a minute. First, let’s allow ourselves a moment to appreciate the attractiveness of meaningful monthly distributions.

Our bills arrive every 30 days. But most stocks only pay their dividends every 90. So why don’t we bridge the gap and line up our income with our expenses?

Electricity bill? No problem – got an emerging market bond distribution to cover that.

Cable? No hurry to cut the cord (and risk live sports) when we have a REIT stock that covers this month’s bill.… Read more

A few weeks back, I revealed my proven 3-step process for a “do-it-yourself” 10% dividend yield.

I’ll sum it up for you in 5 words: buy stocks with “accelerating” dividends. That is, payouts that grow faster and faster every year.

It’s a double win!

Take Royal Caribbean Cruise Lines (RCL), a stock I focused on in a March 6 article (and still like today). Plenty of dividend investors look at RCL’s current dividend yield—a meager 2.0%—shrug and walk away.

Terrible move!

I’ll show you why in 2 charts … well, make that one chart with 2 different layers.

Let’s start with this one:

“Accelerating” Payout Drives a 500% Income Boost!… Read more

One down, two to go.

The Federal Reserve launched yet another interest-rate hike after its mid-March policy meeting – the sixth such increase since December 2016, and what the Fed anticipates will be the first of three this year. Predictably, a certain subset of the market shuddered in response: lazy, low-growth dividend stocks. But at the same time, shareholders of a few other stocks quietly celebrated what should be a win for the years ahead.

Today, I want to highlight both types: The Fed-proof, and the Fed-frightened.

2018 isn’t shaping up to be a bad year for dividend growth, but it’s not a particularly good one.… Read more

If you’re planning to retire (or are currently retired), I urge you to become intimately familiar with monthly dividend stocks. They offer the ultimate consideration: income payments that actually line up with your monthly bills.

Today, I’m going to help get you started by introducing you to four monthly dividend payers that yield up to 12%. But first: What’s so great about this type of stock?

When you pay your bills – be it the mortgage, the electricity, the TV – you don’t sit down at the kitchen table to do that every quarter. You do it every single month.… Read more