Author Archive: Brett Owens

I run into far too many investors who think the best way to build their bond income is to buy through an ETF.

It makes sense. After all, buying corporate bonds “direct” means playing in the murky over-the-counter market, or forking over a hefty brokerage commission.

What’s more, the media—with help from ETF providers’ marketing departments—has most folks believing an “automated” ETF always beats a human manager.

So it follows that more people are buying ETFs like the Bloomberg Barclays SPDR High-Yield Bond ETF (JNK). With one click, you’re getting a portfolio of corporate bonds throwing off a nice 5.6% dividend yield—and charging just 0.4% of assets.… Read more

Some of the stock market’s best dividend stocks are hiding in plain sight. But today, I’m going to introduce you to four long, longtime dividend-growing powerhouses that yield up to 6.6%.

Wall Street has naturally slept on these companies simply because they’re not easily covered mega-caps like Coca-Cola (KO). That’s too bad because in many cases, their returns have shredded many blue chips with similar dividend histories.

Just consider this “mystery” company:

This global chemical firm was founded in 1932, and currently boasts 18 manufacturing locations across the world. Like many industrial companies, it’s boring but makes our everyday lives better.… Read more

This week we’re going to get a bit greedy (responsibly, of course) and discuss fast double-digit gains from safe dividend stocks. Many of you probably sat back and enjoyed Arbor Realty Trust’s (ABR) “parabolic” move to the upside in recent weeks. Since we purchased Arbor for our Contrarian Income Report portfolio in July 2018, we’ve enjoyed epic 60% total returns!

This Tree Might Grow to the Sky

We paid $10.85 per share and have already collected $1.51 in dividends, about 14% of our initial capital—in 16 months!

Payouts alone have provided a solid return, but it’s been the price gains that have really made this stock a winner.… Read more

Looking for a 27%+ gain in 2020? Then you’d better buy now. But you won’t want to go near the media darlings most folks gamble on: I’m looking at you, Tesla (TSLA).

Instead, we’ll ride to 27%+ gains with some of the sleepiest stocks out there! I’m talking about dividend payers—and better yet dividend growers. I’ll show you three names and a powerful (and simple) strategy you can start using now shortly.

First, let me tell you why, even with the S&P 500 popping new records daily, there’s still plenty of upside left as we roll into 2020.

2020 Market Drivers: The Election and the Fed 

The first?… Read more

Big brand names can’t rely on their past “glory days” forever. Today we’re going to make sure you don’t hold any “household name has beens” in your retirement portfolio.

I’m talking about washed up brands like Tupperware (TUP). The yesteryear firm’s shareholders just received yet another brutal reminder of the fickleness of brands in 2019.

Earlier this month, I pointed out the danger in blindly diving into high yields like Tupperware’s, which only hit double digits because its stock had been pelted so badly. Mere days later, shares of the ubiquitous container company sank to new all-time lows as Tupperware did the inevitable.… Read more

Interest rates are the talk of the bond world right now. They are going up for once!

Does this mean we should book profits on our fixed-rate bond positions? They have benefited greatly from sliding interest rates throughout 2019 (and that’s an understatement).

Most income investors are thrilled to see 4% or 5% returns from their bond funds. What they wouldn’t give for the eight-pack of “bond moonshots” we contrarians have enjoyed for 25% average returns!

How We Made 25% in 11 Months with Safe Bonds

Yet I’m sitting here at the Inside Fixed Income conference (the bores I endure for you, dear subscriber) in San Diego, California (well… never mind) hearing about the $74 billion now held in bond ETFs.… Read more

Real estate investment trusts (REITs) have momentum now. And don’t let their terrific 2019 scare you—next year is setting up to be even better thanks to Jay Powell’s gang of doves!

I’ll reveal three strong REITs for 2020 at the end of this article. Together they give you growing dividends that double (and even triple) the market’s payout. And to be honest, one isn’t exactly a REIT—it’s a REIT-owning closed-end fund (CEF) that drops a huge 6.5% dividend into your account every month.

REITs: The Ultimate Rate-Proof Play

First, no matter what Jay Powell says, you can take this to the bank: more rate cuts are on the table as the on-again, off-again trade war lingers and the president batters the poor fellow tweet by tweet.… Read more

Are interest rates heading to zero in the US? Or, dare I say, negative range?

I don’t think so. But if they do, real estate investment trusts (REITs) are going to absolutely skyrocket. This year-to-date has been a sneak preview. Most REITs have seen their valuations expand with the market rally, but we haven’t missed out on all of them.

In a minute, we’ll discuss a trio of dirt-cheap REITs with attractive yields between 5% and 6%. But first, let me show you just how overstretched this market has become.

First, let’s look at the “Shiller PE.” This is the “second-level” price-to-earnings ratio, created by legendary economist Robert Shiller, that factors in average inflation-adjusted earnings over the past decade.… Read more

Most stocks that pay more than 10% are, honestly, trash. Their yields usually look big because their stocks have split once or twice “the wrong way.”

Take Tupperware Brands (TUP), for example. The party ended abruptly for these shareholders. I feel bad for anyone who was mistakenly holding these shares “just for the dividend.”

The yield has skyrocketed from the 3% to 4% range into double-digits. Which would normally be pretty sweet, except the reason for the 10%+ payout is a collapse in the stock price from $72 to $9-something:

The Tupperware Party Ends in Tears

“First-level” income investors tend to turn their brains off once they have identified the yield.… Read more

Real estate investment trusts (REITs) are on fire—and we need to be very careful not to get burned.

Yellow Light on Some (but not all) REITs

Look above and you’ll see what I mean—the Vanguard Real Estate ETF (VNQ), in blue, has topped the S&P 500 on price returns alone. That’s a monster run for income investments like REITs.

More REIT Gains to Come—But Be Cautious

Here’s the twist: there’s plenty more upside ahead—and you can thank the Fed for that. Its latest rate cuts will keep powering REITs higher, for two reasons:

1. Lower rates cut REITs’ borrowing costs, and these trusts (owners of everything from senior-care centers to cell towers) need lots of borrowed cash to buy new buildings and upgrade current ones.