Author Archive: Brett Owens

Healthcare—along with consumer staples (“buying stuff”) and utilities (“keeping the lights on”)—provide portfolio stability. Plus, they usually pay dividends, too!

Of the three safety sectors, healthcare is a steady growth market, too. Consider these stats from the Centers for Medicare & Medicaid Services:

• National health spending is projected to grow at an average annual rate of 5.4% for 2019-28 and to reach $6.2 trillion by 2028.
• National health expenditures are projected to grow 1.1 percentage points faster than gross domestic product per year during that same time period.
• Between 2019 and 2028, healthcare’s share of the economy will rise from 17.7% to 19.7%.

I recently accomplished something that had been on my “to do” list for no fewer than three months.

I figured out how to log into my 401(K)!

You would think a simple “password reset” would not be that difficult, especially for a guy who has started a software company or three in his day. Well, I’m not embarrassed, just glad that my long personal investing nightmare is over.

What is it about 401(K) access? It’s a circus when we try to log into my wife’s retirement plan, too. (Any task that starts with “logging into her company’s VPN” is off to a rough start.)… Read more

In a levitating market like today’s, we dividend investors absolutely must have a portfolio that does three things:

1. Automatically “times” the market for us.
2. Frees up cash for us to grab bargain dividend stocks on pullbacks and, of course …
3. Pays us a growing income stream!

We’ll get to point No. 1 in a second. Let’s start with point No. 2.

Most people panic when the market drops, but we dividend investors know that volatility is our friend. It’s easy to see this just by looking at what the S&P 500 benchmark SPDR S&P 500 ETF Trust (SPY) has done in the last five years.… Read more

There are dozens of huge yields out there that no one ever talks about. I’m talking about payouts 6-times (or bigger) than the pathetic 1.4% dividend the typical blue-chip stock pays.

Swapping Dividend Yield for Shareholder Yield 

These big “hidden yields” really are hiding in plain sight. The key to finding them is to set aside dividend yield for a moment and focus on shareholder yield.

Shareholder yield is a simple measure that goes beyond dividends to show you the big-picture view of what you’re pulling in from a stock—including another way companies pay us that doesn’t get nearly enough press (or at least nearly enough positive press!).… Read more

Oil stocks—and their fat dividends—are breaking out to new highs.

Question for you. If Fed Chair Jay Powell hadn’t printed a bunch of money over the past 14 months, would energy stocks still be this electric?

Chairman JP Prints Lots of Money

My take? No way. Their recovery would be (much) more muted.

According to the International Energy Agency (IEA)—the best and most unbiased source of industry information I know—world oil demand is projected to hit 96.7 million barrels per day this year.

Meanwhile, global supply is just 93.6 million barrels per day. Production was halted when the world shut down a spring ago.… Read more

Who’s up for speedy 80% stock gains? Believe it or not, there’s a “split secret” hiding in plain sight for us to apply.

Let’s discuss the details. And appreciate that we can tap this strategy using safe dividend paying stocks, too.

Believe it or not, stock splits can hand us a nice price bump. When a company—especially a top-notch dividend grower—splits its shares, the move draws in folks who’ve been holding off, seeing the pre-split price as too expensive.

Let’s be honest: we’ve all done this. How many times have we avoided a stock because it trades for $300 a share?… Read more

Business development companies (BDCs) are big dividend paying companies that tend to thrive as rates rise. Today, we’ll discuss three inflation-powered payouts up to 10.7%.

BDCs extend loans to small businesses and often their loans have a “floating rate” component included. So, the BDC tends to make more money as long-term rates rise.

A quick background on BDCs. Since traditional banks have backed off on lending over the years, BDCs have stepped in. They provided much-needed debt, equity and other financial solutions to small businesses.

Congress whipped up business development companies with a few pen strokes in 1980, creating a structure that’s incentivized to provide smaller companies with financing.… Read more

Are the best things in life actually free? It depends how we handle the hidden costs.

Free coffee is good. At home, I drink one mega-cup per day. At fixed income conferences, I typically scale that “complimentary” consumption up to double-digits per day. (Hey, they’re just hotel cups.)

Free breakfast is usually better than just free caffeine. And open bar, of course, reigns supreme for your income strategist.

No doubt these freebies are baked into ticket costs, but I will gladly accept the bacon and beer challenge to get my money’s worth.

When readers write in to ask my thoughts on “risk free” yields on certain bonds, it’s time for us to talk.… Read more

With stocks grinding along near all-time highs, decent discounts (and decent dividend yields!) are thin on the ground. But if we look close enough, they are there.

The answer to this no-yield problem is simply going one step beyond the blue chips everyone buys. Our big dividends (at discounts) are lying there in a corner of the market that few serious investors pay attention to. That’s too bad for them, but great for contrarians like us.

I’m talking about closed-end funds (CEFs), which, as a group, yield around 7% on average as I write this.

And here’s the truly underappreciated thing about these high-paying funds: many of them own the big names of the S&P 500 anyway!… Read more

Energy prices have rallied furiously, but they likely have further to go. Oil and gas prices last peaked around 2014 and sunk slowly until the black goo hit negative prices in the spring of last year.

A six-year bear market takes more than 13 months to unwind. Which is why energy dividend stocks remain quite attractive.

Oil and gas stocks are 4% yielding on average, which is nearly a full percentage point more than we can get out of real estate investment trusts (REITs) at the moment. And as I’ll show you in a moment, we can squeeze yields of between 5.0% and 9.2% from “Texas tea” if we know just where to look.… Read more