Author Archive: Brett Owens

A few weeks back, bond giant PIMCO trimmed a bunch of payouts from its closed-end funds (CEFs). Which was no bueno for income investors, who buy CEFs solely for their dividends.

We don’t own any PIMCO funds in our premium portfolios currently. But readers, who rightfully recognize me as a PIMCO fanboy, have written in to ask what’s up.

“Any thoughts on PIMCO recent slashing of dividends? Do you think they will also cut PDI’s dividend?”—John S 

John, you know me well. Maybe too well! Here’s a live look at my nightstand which boasts a copy of The Bond King: How One Man Made a Market, Built an Empire, and Lost It All.… Read more

If 2022 taught us anything, it’s that we need to swing our portfolios away from this:

We’re Fading “Cardiac” Share-Price Action Like This … 

That’s the chart of “America’s ticker”—the SPDR S&P 500 ETF Trust (SPY)—last year. I call SPY “America’s ticker” because it’s by far the most popular way to track the S&P 500.

But its popularity does not translate into safety. Just holding this simple index fund last year meant taking a 20% haircut—with plenty of heart palpitations along the way! That’s why we want to shift our portfolio returns toward the smooth and steady growth of dividends:

… And Toward the Serene Upward Drift of Dividend Growth

That’s more like it!… Read more

Today we’ll discuss a duo of cheap dividend stocks paying 11.2%. And, for good measure, we’ll throw in another bargain even though it “only” yields 9.5%.

I jest because I love. Dividends, that is. And bear markets don’t usually last much longer than this. So, it is double-digit yield shopping we go.

These are serious yields we’re looking at—the kind we need to retire on dividends alone. They’re hard to find among over-followed, over-analyzed and over-owned blue-chip stocks. But they’re abundant in BDCland (populated by business development companies (BDCs), of course).

Like real estate investment trusts (REITs), business development companies are a creation of Congress.… Read more

“You had me at VIP,” my buddy Nick texted back to me.

Our babysitter canceled due to a last-minute illness. My wife took one for the team and kindly sent me to the Sacramento Kings game solo—which meant I had a seat to fill on 35 minutes notice.

No problem for my man, a fellow dad and fan. (I’ll let you decide the order!) Nick flipped the game off at home, kissed his own wife and kids goodbye and beelined from his house to our seats.

He only missed a few minutes of gametime because, as I alluded to at the open, we got him in through the VIP entrance.… Read more

Look, we’re probably going to see a recession in 2023. And if you’re like most folks, you’re wondering how to respond.

Here’s the good news: overall I see a much better year ahead than the mess we lived through in 2022. But we could see a pullback—and a recession—before the market bottoms and bounces.

That leaves us contrarian dividend seekers in a tricky spot. It’s why we’ve held a lot of cash in my Contrarian Income Report service over the last 12 months.

But I also hear from a lot of folks who want stocks they can hold no matter what, to keep their payouts rolling in.… Read more

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