Author Archive: Brett Owens

The economy is a mess—and that’s presenting quite the opportunity for these landlords, and contrarians like us. Tenants are still paying, but these stocks are priced like a few are flaking.

That’s not the case. Plus, one firm is about to take advantage of a weak 2020 market to go shopping and secure future cash flows at a bargain.

Real estate investment trusts (REITs) are trading at 2020 discounts. Investors trashed these stocks swiftly and thoroughly when they realized April 1, 2020 rent payments were going to be a disaster. But we now have a few months of pandemic landlording in the books, and there’s evidence that some REITs are going to be all right after all.… Read more

We just got two powerful signals that the time is right to move into one of my favorite dividend plays: high-yield REITs (real estate investment trusts).

Before we go further, I can understand if you’re leery of REITs. Lots of income seekers were swept up in the “March Massacre,” when investors realized REITs’ April rent collections would be a disaster. And even though REITs have recovered somewhat, most are still underwater on the year.

REITs Sink, Then Bump Along the Bottom

But don’t take that to mean REITs are down for the count, because this is where our opportunity lies. Truth is, when it comes to REITs, most folks think it’s still March, even though the situation today is far better.… Read more

We’re in the deepest recession since World War II, yet the yield on the S&P 500 is at a 10-year low. Buy it today for a lame 1.7% yield.

So, we have high stock prices and investor sentiment, a terrible economy—and no dividend yield to compensate us for the concerning level of risk. Why would any serious dividend investor be interested in this “deal?”

Fortunately, there are better bargains out there. Today we’ll talk about a less-chatted-about area of the market that pays more. Seven times more, to be specific, as we craft a dividend portfolio that yields 10.9% (yes, you read that right.)… Read more

Last week, I accomplished something that had been on my “to do” list for no less 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

Be careful with conventional “wisdom”—especially when it comes to dividend investing. Some investors are so scared of a payout cut that they chase too-popular yields and watch their money grind sideways for years on end.

This safety trap is especially tempting in 2020, with dividend cuts happening left and right. We’ve had 639 publicly traded US companies reduce or eliminate their payouts in the second quarter alone, according to S&P Dow Jones Indices.

If you’ve been burned by a payout cut this year, the small consolation is you’re far from alone. Many folks were caught off guard when big names like Ford (F), Wells Fargo (WFC) and senior-care REIT Welltower (WELL) slashed or ceased their dividends.… Read more

If your dividend portfolio is like that of most investors I know, you’re probably getting paid quarterly. That’s too slow, especially for dividend payments that are most likely too low.

Why not up that frequency to a monthly payout, and increase the total yield while we’re at it?

The secret to monthly payouts that add up to 9.1%, 9.4% and even 10.8% yields per year is a simple three-letter acronym: C-E-F.

For whatever reason, closed-end funds (CEFs) don’t have nearly the following that popular dividend-paying stocks boast. This “secret” is one of the last great efficiencies in an otherwise tough-to-beat market.… Read more

It’s August, it’s hot, we’re all still quasi-captives…and the collective love for stocks is getting downright steamy.

Investors have not felt this passionate about equities since January. That was, ominously, the last time the “Dumb Money” confidence level marched down from ebullient levels. Here’s a look at the “Smart/Dumb Money Confidence” chart produced by our friend Jason Goepfert at SentimenTrader (who was kind to let us republish here):

The Dumb Money is named so for a reason—it’s made up of the investors who are always late to the party. They pile in at market tops and bail at bottoms, while their “Smart Money” counterparts (fundamental-focused managers) take their lunch money.… Read more

What are we dividend investors to make of this presidential election? Are we supposed to buy now or wait to see what happens in November?

Before we get into that—and discuss a 10.7% dividend that’s very appealing pre–E-Day—there’s one thing we must do: set aside our personal politics and stay laser-focused on the investing angle here.

With that said, there are two things I see as likely no matter who wins this thing:

• A post-election rally: According to Deutsche Bank global chief strategist Binky Chadha, stocks typically rally 5% from Election Day until the end of the year when an election is close, regardless of the result.

These 31 dividends are more than just safe. They are likely going up between now and October!

Recently, S&P Dow Jones Indices’ Howard Silverblatt put a hard number on 2020’s tough dividend decay, writing that second-quarter payouts were whittled down by $42.5 billion during the second quarter. The worst might now be over. Here’s a key excerpt from Silverblatt’s latest note about the month of July (emphasis mine):

“There were significantly fewer dividend actions, as 15 issues increased their dividend rates, one issue initiated dividends, two decreased them (including Wells Fargo’s USD 6.8 billion cut, the second-largest in index history), and one suspended them.… Read more

Historically speaking, it’s best to avoid bonds when your central bank is printing money like crazy. More cash can lead to inflation, which can lead to higher interest rates—and put a damper on any fixed-rate holdings.

But not all bonds are bad ideas. Some have their coupons tick higher with rates. Others can even provide you with the upside of a stock! Let’s review US-centric fixed income, starting with the “outhouse” and working our way up to the “penthouse” quality bonds paying as much as 8% today.

US Treasuries: For 0.5%, Why?

Ten-year Treasuries pay just 0.5% or so as I write.… Read more