Author Archive: Brett Owens

In just over a month, the script has flipped for us dividend investors: Russia’s war on Ukraine has cleaved the world into two teams: east vs. west.

Some pundits have dubbed it Cold War 2.0. But whatever you call it, I think you’ll agree that the risks in this new arrangement are higher for us: we’re likely looking at another pop in the inflation rate, for one, due to (seemingly) never-ending supply-chain issues.

So it follows that Fed Chair Jay Powell will probably hike interest rates further than he otherwise would have as he tries to fix those supply-chain problems by making borrowing more expensive (if you can follow the logic there, please let me know, because it beats me!).… Read more

Volatility is high, stocks are shaky and there’s a major land war in Europe. So we’ll take a pass on the highflyers, thanks.

Give us the monthly dividends instead.

Of course, easy enough for us to say. We “retire on dividends” folks have spent years building up a nest egg that would last us forever. Now, it’s time for us to turn this pile of cash into cash flow.

I’m talking about dividend payers that will keep on paying no matter what happens around the world. We’ll discuss some elite monthly dividend payers in a moment—the types that will dish us 9.8% per year, paid every 30 days.… Read more

“C’mon daddy.”

Pause. And a sigh.

“I’ll pay you back?”

Ah, there it was. The fiscal responsibility we’ve been working to instill in our seven-year-old clicking in. An acknowledgement that money does not grow on trees.

(Everyone knows that greenbacks only grow on the Federal Reserve’s balance sheet!)

My daughter’s intentions were sweet. She had successfully lobbied to reroute the “daddy bus” to a boutique retail store. The young boss had her eyes on a toy, and offered to buy one for her sister, too.

Well, I should clarify. Initially she offered me the opportunity to purchase both. Your income strategist offered a compromise:

“How about you pay for your own.… Read more

If this mess of a market has taught us anything (and it’s fair to say it’s taught us many things!), it’s the value of dividend reinvestment plans (DRIPs).

DRIPs are always a popular topic here at Contrarian Outlook—they’re a smart “set it and forget it” way for us to plow the payouts we don’t need back into our favorite dividend-paying stocks.

Markets Crackups Make DRIPs Profitable

At their core, DRIPs essentially take dollar-cost averaging (which you likely used to build your portfolio) and apply it to our dividends. By reinvesting a fixed amount of dividend cash at specific times (i.e.,… Read more

I’m an investor in Invesco QQQ, a fund that gives me access to Nasdaq-100 innovations like volumetric video technology.

• Invesco TV ad for its Nasdaq-100 ETF 

My fellow hoops fans watching March Madness are seeing a million commercials for Invesco QQQ Trust (QQQ). They feature flashy camera angles with average investors “dropping knowledge” about the tech stocks they are proud to own via this ETF.

In the spot, the investor humble brags about her “volumetric” video technology investment. English translation: The use of many cameras at different angles to make a sporting event look three dimensional on TV. (Last week, ESPN broadcast a professional basketball game for the first time using this technology.)… Read more

Here are eleven highly rated charities that benefit Ukrainians. Our extra dividend dollars can go a long way towards helping the millions of people who are suffering as a result of the Russian invasion.

All eleven nonprofits have a four-star rating from CharityNavigator.org, an independent service that rates charities for their financial efficiency and their transparency.

From there, I (Brett) cherry picked the very top candidates based on their individual Financial and Accountability & Transparency rating from CN. I have donated to each of these charities myself. Here they are in alphabetical order.

• A Chance in Life is preparing to help the 900,000 Ukrainian refugees (mostly women and children) that are expected to flee to Italy.

Friday morning, I mentioned to my wife that it was time for us to log into her 401(k) and move it back into stocks.

“Funny,” she said. “On NPR they just mentioned that money managers are moving into cash.”

If that isn’t a contrarian confirmation that a short-term low may be in, I don’t know what is!

Aside from the scaredy cats running money, there is also a misinformation campaign floating around about closed-end funds (CEFs). Since these vehicles are a favorite source of 7%+ dividends for us, we’re going to bust apart these lame claims today.

Then we’re going to roll into two CEFs that are savvy buys now, as Jay Powell starts cleaning up the inflationary mess he made by leaving the switch on his money printer stuck in “high.”… Read more

What’s better than an asset class that can deliver 8% in annual income like clockwork? How about one that’s actually poised to pop as interest rates rise?

And oh by the way, this industry lets us invest like privileged private equity investors. No “seven-digit” buy-in needed here though! We buy these dividend machines just like we would any other stock.

That might sound too good to be true, especially when we consider that stocks broadly still yield less than 2%. But we’re simply talking about an underappreciated area of the market that includes only a few dozen stocks or so.

Let’s talk about three of these payout powerhouses today.… Read more

“This wine is crap.”

My wife (girlfriend at the time) glared back. I couldn’t let it go.

“Seriously…we paid $50 for this? I’d rather drink a bottle of Niagara.”

My comment—and ode to the New York wine that tastes like Welch’s grape juice—didn’t help the glare.

I was 22 years old, making $50K per year. It wasn’t a bad starting salary back in the day, but I didn’t have many extra $50s to spend on a Napa Valley wine tasting.

Plus, this guy had been drinking cheap Canadian beer since he was 16! The thought that I could procure 100 Labatt Blues for the price of our tasting raised my temperature further.… Read more

Dividend stocks reward us with more than just cash flow. They actually benefit our retirement portfolios in four ways:

• A high current yield—for meaningful cash flow today. In a moment we’ll spotlight a timely play with a neat 3.5% yield.

• Dividend growth, which tends to pull a company’s share price higher (as we’ll see below with this stock, whose payout exploded 450% in the last decade).
  

• Share buybacks, which cut the number of shares outstanding, boosting earnings per share and share prices in the process. And of course …

• Price appreciation, as the stock moves up on strong results for the company, its industry or the economy as a whole.