Author Archive: Michael Foster

Preferred stocks are in the doghouse, and you just might be wondering whether this is the start of a buying opportunity.

Let me put that question to rest: it is.

Today we’re going to look at what’s behind this superb chance to buy, as well as 3 preferred-stock funds to consider: the Flaherty & Crumrine Dynamic Preferred & Income Fund (DFP), Flaherty & Crumrine Preferred Securities Income Fund (FFC) and John Hancock Premium Dividend Fund (PDT).

As you can see, all 3 of these funds are in the dumps.

A Steep Slide Down

But these are great funds, not only because of their sustainable 7% dividend yields and diversified portfolios, but also because this preferred-stock selloff is misguided.… Read more

There’s one income-producing sector you probably hold in your portfolio—and you may be wondering why it’s crashing out this year.

I’m talking about utilities, which are famous for their rock-steady dividends (and predictable dividend hikes). These companies literally power the economy. But if utilities are so important, why are they in the toilet while the rest of the market is on fire?

Investors Loathe Utilities

Before we go further, if you’ve noticed your portfolio’s utility sleeve taking a dive like the one above—or bigger—don’t worry. This dip is a buying opportunity! I’ll give you one option paying a fat 8.7% dividend below.… Read more

The S&P 500 has already increased in value by over $1 trillion in 2018—and January isn’t even over yet!

What’s behind this incredible bull market isn’t euphoria or hysteria—it’s actually sound investing principles. As I wrote in a January 18 article, the bull market is being driven by the best possible trend: higher earnings and sales for America’s best companies, which is itself the result of improving economic conditions for everyday Americans.

Parties ultimately end, of course. And this one is no different—the bull market is being driven by a solid and reasonable belief that American companies will go up in value.… Read more

There are, as I write this, 3 high-yielding funds giving investors over 5% in dividend income. Plus they pay out every month, tax-free.

All 3 sold off at the end of 2017. And I’m watching one group of investors who are waiting to buy back in when a “time limit” I’ll explain in a moment expires in the next few weeks.

That makes now a good time to buy. Because when this “deadline” comes and goes, I expect all 3 of these funds to rise.

Before I show you these funds, I want to give you the inside scoop on this unique situation.… Read more

I’m about to show you 3 funds to buy for the raging bull market we’ll see in 2018.

You read that right. After a massive 22% gain in 2017, stocks still have room to run, no matter what the naysayers tell you.

Before we get to these 3 funds—with dividend yields up to 8%—I want to tell you why the negative Nellies are all washed up when it comes to the outlook for stocks this year.

Then we’re going to “pick our spots,” highlighting the 2 fastest-growing sectors of this surging market (both of which our 3 fund picks are dialed into) to grab the highest dividends and upside!… Read more

What if I told you that you could reap huge dividends (I’m talking life-changing 15% payouts) and quick upside from … the weather?

I’m talking about the bone-chilling polar vortex, which, especially if you live on the US east coast, probably already has you feeling winter weary—and we’re only in mid-January.

I’ll show you 3 beaten-down funds at the center of our “polar-vortex profit plan” in a moment. But first, here are the raw numbers behind this opportunity for income and gains.

A Heat Map for Frigid Times

Since it’s freezing outside, it makes sense to warm our hearts with a heat map—and there’s no better heat map than the one for the S&P 500.… Read more

In investing, it’s just as important to know what to buy as what to avoid.

And if there’s one thing you need to keep away from at all costs, it’s a dividend cut like the huge 16.8% slash the PIMCO Global StocksPLUS & Income Fund (PGP) announced on January 2.

It caught first-level investors completely off guard (though it shouldn’t have, as I’ll explain in a moment).

Here’s how they responded:

And Down She Goes

If you’re a regular reader of my articles on ContrarianOutlook.com, you’ll recognize PGP, a PIMCO fund that mixes stocks and bonds to give investors the biggest dividend possible.… Read more

With 2017 in the books, it’s time to turn our attention to 2018.

And if you invest in closed-end funds (CEFs)—and you should—there’s a lot to look forward to.

In a moment, I’ll show you the one type of fund not to buy in 2018—and give you a simple 2-step plan that lets you zero in on the funds set to outperform the market and deliver you outsized dividends, too.

First, I want to give you my prediction for the market as a whole in 2018. You’ll be pleased to hear that a lot of the things that made 2017 fantastic for investors are still in play as we roll into the new year.… Read more

2017 was an amazing year for closed-end funds (CEFs)—and 2018 is setting up to be just as strong, if not stronger.

So if you’re on the hunt for big dividends and upside this year (and who isn’t?), this is a perfect time to take a closer look at high-yielding CEFs.

That goes double for the 10 unloved CEFs I’ll show you in a moment.

In fact, I’ll go as far as to say this: I predict these 10 funds will be this year’s biggest comeback story, after investors mostly threw them over the side in 2017.

More on those in a moment.… Read more

Worried that a bursting bitcoin bubble will sideswipe stocks in 2018?

Don’t be. Because as I’ll explain in a moment, the hysteria over the so-called “cryptocurrency” is actually good for stocks this year, no matter if bitcoin explodes for a 10,000% gain … or flames out and crashes back to earth.

I’ll also show you the one surprising group of stocks poised to benefit from bitcoin in 2018, no matter what happens.

First, if you’re like most people and find bitcoin a complete mystery, stick with me for a minute and I’ll show you how it works—and what’s pumping up the bulging bitcoin bubble.… Read more