Author Archive: Brett Owens

Mere “common stocks” fell 18% in last year. But these preferred shares are set to do better. Especially for contrarian income seekers like us.

I’m talking about safe 7% to 8% yields. Backed by good old fashioned cash flows. With double-digit price upside, too, as these share prices bounce back after a rough run.

A quick primer if you’re new to preferred stocks. They are part stock, part bond—and all yield, as we’ll see in a minute.

Preferred stocks trade around a par value and deliver a fixed amount of regular income, just like a bond. They don’t have any voting rights, which also is like a bond.… Read more

$500K can be enough money to retire on. Even as early as age 50!

The trick is to convert the pile of cash into cash flow that can pay the bills. I’m talking about $35,000 to $40,000 per year or more in dividend income on that nest egg, thanks to 7% and 8% yields.

These are passive payouts that show up every quarter or, better yet, every month. Meanwhile, we keep that $500K nest egg intact. Or, better yet, grind that principal higher steadily and safely.

Got more in your retirement account? Cool—more monthly dividend income for you!

We’ll talk specific stocks, funds and yields in a moment.… Read more

As dividend investors, safe payouts are our No. 1 (and 2! and 3!) priority. And with interest rates soaring and a recession looming, we’re going to be bigger sticklers than ever about this in 2023.

That’s why, last week, we talked about five popular dividend stocks whose payouts could be slashed this year. If you hold any of these laggards, you need to sell yesterday.

But how do we tell which dividends are safe?

Well, there’s a surefire indicator that no one talks about: insider buying. And when you combine insider buying with another “signal” we look for in a stock, high short interest, you can set yourself up for safe, growing dividends and serious price gains, too!… Read more

Shall we turn 2023 into a bounce back year for our retirement portfolios?

How about we shoot for, say, 23% total returns?

The surest way to do it is by employing a technique I call the dividend magnet.

It’s safe. Reliable. And works beautifully on the back side of a bear market.

I recently gave a guest lecture for a finance class at California State University, Sacramento. One of the students, to put it lightly, was excited to make money in stocks.

His hand went up from the back of the classroom. (Nobody sits in the front rows. Some things never change!)… Read more

Retirement is simple (we stop working). But it’s not necessarily easy (build up a passive income stream that replaces our previous wages).

Retiring on dividends is my jam. Payouts that arrive every quarter—or better yet, every month—are about as passive as it gets. “Mailbox” money.

Which is ideal. We’re not trying to work here, people! We’re crafting an income stream so that we needn’t answer to anyone else.

When our payouts—plus social security and any pension payments (remember those?)—surpass our expenses, we’re there. See ya, Corporate America!

And remember, we employ a “No Withdrawal” Portfolio. We live on dividends alone, which helps us keep our capital intact.… Read more

Hands up if you’ve been caught out by a snap dividend cut. Then you know the sickening feeling as investors dump the stock, tanking its price on the way out.

The result? A shriveled income stream and a crushed share price.

It’s a story I fear we’re going to hear a lot in 2023, with rising rates hitting stocks now, and a recession on the horizon. Folks who win will be those who know when to swing into—and out of—strong payers while shunning feeble dividends set to crumble.

To help you protect yourself, I’ve combed the market for dividends that could be on the chopping block.… Read more

Looking for the Dogs of the Dow, 2023 edition? You came to the right place.

We’ll explore these 10 blue-chip dividend bargains in a moment. Collectively, they are yielding 4.5%! But first, a quick recap of the strategy and homage to its 2022 “mini miracle.”

Last year was a dumpster fire for most mainstream investors. The market-at-large dropped 18%. “Safe” bond funds shed 25%, 30% or more. Yikes.

But the dogs ran. Not only did they outpace the market, but they delivered positive gains!

Who were these income greyhounds? And what’s the lineup for ’23? First, a refresher on this simple three-step strategy:

• Step 1: After the final trading day of the year, identify the 10 highest-yielding stocks in the Dow.

It’s rare to see two bad years in a row. I have a hunch that 2023 may rhyme with 2009. Bear markets don’t usually last longer than a year. A spectacular shakeout early in the year could set the stage for a steady grind higher later on.

That said, we contrarians don’t buy hunches. Until we see an edge, we’ll remain cautious—and follow these rules:

2023 Rule #1: Don’t fight the Fed. Print this rule out and tape it next to your computer. Or the backside of your phone. Or whatever device you use to make trades.

As long as the Federal Reserve is tightening, the obvious path for all stock and bond prices is down.… Read more

I heard the same question from readers all through 2022: when will we back up the truck and start buying again?

Your dividend strategist sympathizes. We “pivoted” early, starting back in late 2021, selling early and often in my Contrarian Income Report and Hidden Yields dividend-investing services.

Heck, we coined the term “pivot” long before the press did! And while Wall Street has been betting on a rebound all year, the truth is, they’ve been wrong, wrong and wrong again. 

Now 2023 is here and we’re sitting on a big pile of cash. Of course, cash doesn’t pay dividends. But our mattresses are still outperforming 90% of investors out there!… Read more

A terrible 2022 is our income treat. There’s never been a better time to retire on dividends than right now.

Today we’re going to spotlight three diversified dividend funds that yield 8% on average. That’s right, put $500K into these tickers and we’re looking at $40,000 per year in payouts.

Or $80,000 on a million. You get the idea. This is what I call a secure 8% “No Withdrawal” Portfolio where we get to retire on dividend income alone, without ever touching our capital. (The strategy has become so popular that Tom Jacobs and I wrote a book on it!)… Read more