Author Archive: Brett Owens

Few people would put the words “artificial intelligence” and “big dividends” in the same sentence—but those folks have never heard of closed-end funds (CEFs)!

These “yield machines” are perfect plays on the surging AI megatrend for three reasons:

• Big dividends: Thanks to CEFs, we can “download” big cash payouts from stocks that pay low (or no!) dividends themselves. Getting our payouts in cash, rather than paper gains, is priceless in the sometimes-volatile world of AI investing.

• Lower volatility: Speaking of volatility, as most equity CEFs invest in various sectors—not just tech—we get some extra insurance over folks who try to “cherry-pick” the AI trend themselves.

Do you also believe that a recession is on the way?

Note that we’re not saying when. Maybe later 2023. Or 2024. For sure 2025.

We are good economists. Casting out predictions without set timelines!

At some point, of course, all of the rate hikes add up. The housing market slows because mortgages become more expensive. Commercial landlords feel the pinch because, well, nobody rents office space anymore!

One by one, industries slow down. Eventually, the much-anticipated recession arrives.

As contrarian investors, we don’t actually care about economic data. GDP. CPI. PPI. PMI.

Whatever. It’s all TMI.

We’re after dividends and growth, in this order.… Read more

$600K 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 $50,400 per year or more in dividend income on that nest egg, thanks to 8.4% yields.

These are passive payouts that show up every quarter or, better yet, every month. Meanwhile, we keep that $600K 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

No matter what Jay Powell says, interest rates are topping out here—and that’s put three “stealth” stocks (growing payouts double digits!) in perfect position to gap higher.

This trio are midcap stocks—which we love now because of, well, history: at times like this, midcaps, particularly midcap dividend growers, soar. This chart paints the picture:

Midcaps Counter Rate Moves

Here you can see that the Vanguard Mid-Cap ETF (VO), in purple, rose when the yield on the 10-year Treasury fell at the start of the pandemic. But look at the right side of the chart: as rates soared, midcaps slipped. That opens a buy window as Powell steps to the side and (eventually) cuts, flipping rates lower—and midcaps back up.… Read more

If retirement gets any better than monthly dividend payers then, well, I don’t want to know about it.

Seriously. I’m a simple guy! Pay me every 30 days and I’ll smile and shut up.

And I’ll grin even wider when my monthly dividends add up to 8.7%, 14% or—get this—19.5% per year.

These are not typos. They are real yields from actual stocks and yes, they are spectacular. We’ll highlight them in a moment. But first, let’s review the magic of monthly dividends.

Bills keep showing up every month. Active paychecks from our jobs do not, which is why we rely on payouts.… Read more

Retiring on dividends. It’s the income investors’ dream, right?

It sure beats working for the rest of our lives!

Check out this July 2023 income summary, courtesy of Income Calendar, a nifty tool we built to project dividend income. I loaded up a 10-stock portfolio, featuring popular payers we discuss in these pages:

Source: Income Calendar

This is an “equal opportunity” collection of both picks and pans. Please, don’t run out and buy Global X Nasdaq 100 Covered Call ETF (QYLD) just for its impressive 12.2% annualized yield. Let the Nasdaq bubble pop, at least!

QYLD buys the Nasdaq index and sells covered calls to generate income.… Read more

Don’t buy Jay Powell’s tough-guy act. This rate-hike cycle is on its last legs. And that’s opening up an opportunity for us to grab high—and growing—cash payouts in a “sleepy” corner of the dividend world.

As rates roll over and we enter a recession, the unsung stocks we’re going to discuss today will gain. That growth will compress their dividend yields (as yields and prices move in opposite directions). So our best play is to get in now, before that happens.

I’m talking about utilities.

Most people don’t think of utilities as growth plays. But the stars are aligning for our favorite “utes” to do just that as Powell steps to the side.… Read more

AI bubble? Bear market rally? I don’t care because I see five dividends between 10.1% and 13.5%.

Now that’s rarified air for yields! A benefit of a manic market such as this, where we have fear alongside insanity at the same time.

The five double-digit dividends we’re about to discuss aren’t tied to individual stocks, either. These payouts are dished by diversified funds with dozens or hundreds of holdings. All have experienced managers at the helm.

They just happen to be cheap because CEFland is still on sale after a rough run in 2022. Which is where we contrarians pick up the case.… Read more

Let’s talk about legitimate financial engineering today. An easy, real and (honestly) no-brainer move to boost a timid 2.5% yield into an 8.4% dividend.

Just type this ticker, not that ticker, and we’ve got it. An 8.4% dividend. Pay up, Wall Street—and give us a 5% discount to boot!

The Wolf of Wall Street would term this type of move fugayzi. Slang for BS. The suits ripping off the little guy.

This reverse fugayzi is our revenge. The wolves are scavenging for this 2.5% yield. We’ll buy the same stock, at a discount, and boost our dividend to an elite 8.4%.… Read more

Too many folks are letting so-called “safe” yields on Treasuries distract them from the real action these days: 10 “stealth” bond plays yielding way more—I’m talking 9%+ payouts here—that Jay Powell just put on sale.

These deals won’t last: As the Fed pauses rate hikes, bond yields will roll over, driving up prices—and our chance will be gone.

These 10 Bond Deals (Yielding 9%+) Crush Treasuries

These 10 picks, which we’ll get into below, are bond-focused closed-end funds (CEFs), and they’re miles ahead of 2-year Treasuries on every count.

Dividends? These funds yield twice (and more) the 4.7% that 2-year Treasuries pay.… Read more