Author Archive: Brett Owens

Today I’m going to show you a two-part dividend-growth strategy that actually made money for one group of investors in the disastrous year that was 2008. It’s an appropriate investing strategy for us to follow now, with the Federal Reserve likely to raise rates until we end up in a recession (assuming, of course, that we’re not in one already!)

Before we get into the specifics on this technique and an example stock, I want to level with you. I do believe that stocks are heading lower still before they ultimately head higher.

That said, if we look one year out from today, I like our chances.… Read more

It’s not easy to be upbeat in a bear market. This goes for people—and especially dividend stocks.

(And hey, who has time for feelings? We are looking to get paid without losing our entire portfolios. We’ll share emotions when the bear is done.)

For contrarians like you and me, it’s a time to be optimistic. We should be thinking about bargains, bargains and even more bargains.

Now halfway through the year, every major index is deep in the red. The S&P 500, Nasdaq and even the small-cap Russell 2000 are all in bear-market territory, while the Dow is down considerably too.… Read more

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

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

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.

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

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

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

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

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