Articles

Even legends can lose their edge. This applies to acclaimed investors and dividend aristocrats alike.

2018 was an explosive news year that will be remembered for many reasons. But one thing that will go under the radar is how this year has been a turning point for numerous old-guard dividend stocks. These companies have been no-brainer holdings in countless retirement portfolios for years – in fact, chances are you hold one if not several of them.

I’m going to highlight five of these revered but poorly aging blue chips in a minute. But first, I want to show you the danger of avoiding warning signs, even in legendary investments.… Read more

One of the best characteristics about dividends is they usually offer a consistent, preferably growing stream of income. However, investors can easily fall into the trap of becoming complacent that future payments will continue to flow in, even when the business isn’t generating enough cash to fund the dividend.

The higher the yield being offered generally means the riskier the dividend is and sometimes losses can outweigh the expected income. For example, Dynagas LNG Partners (DLNG) cut its 16% yield back in April and shares are down 16% since.

It’s very tempting to reach for higher yielding stocks, especially when the 10-year government bond is at a seven-year high and north of 3.2%.… Read more

Today I’m going to show you a quick trade you can repeat over and over for an 8% gain in just over 2 months (or 40% annualized!).

How do I know?

Because this is exactly what happened with the PIMCO Global StocksPlus & Income Fund (PGP), which I urged Contrarian Outlook readers to buy in June and then sell in August.

A Fast, Easy Gain

So how was this win so easy to call the last time around, and how can we ride PGP and other funds to the same—and even bigger—gains in the future?

Let’s start at the beginning.… Read more

Certain closed-end fund (CEF) investors are getting a little desperate for dividends. It’s tough to blame them for reaching for 5%, 6% and even 7%+ yields in a 2% to 3% world.

But by grossly overpaying for funds, they are risking too much capital to bank these payouts. If you own any of the five popular funds I’m about to call out, you should consider selling them immediately.

(There are bargain replacements, after all. I’m talking about funds trading as cheap as $0.88 on the dollar and yielding 7.2%. We’ll discuss specifics in a moment.)

“First-level” income seekers can be greedy one minute and fearful the next.… Read more

If you want to double—or even triple—your dividend income overnight, there’s an easy way to do it: buy stocks that pay special dividends.

And today I’ve got 3 totally ignored special-dividend payers for you. Each of these top-notch income plays throws off “hidden” payouts yielding up to 9.7%!

We’ll unmask all 3 as we roll through this article. We’ll also look at the almost comical reason why stocks like these get completely overlooked, and I’ll give you everything you need to get in on the next big special payout before it drops.

A $2-Trillion Cash Stash Looking for a Home

It happens like clockwork: a company announces a blowout quarter or a hike in its regular payout … and rolls out a big special dividend either days before or just after.… Read more

You may be surprised to hear that big hedge-fund honchos are struggling with the exact same question you probably are when it comes to tech stocks: are they pricey or cheap?

The good news? I have the answer for you—and a little further on, I’m going to name one fund that taps straight into that answer to hand you rich 5% dividends, plus the massive upside tech is renowned for.

But before we get to that, let’s look at why the biggest names on Wall Street disagree on this question, and the one dead-obvious indicator that many of them have walked right by.… Read more

Smart income investors know that the best REITs (real estate investment trusts) do just fine as rates rise. That’s been the case historically, and they’re rally again during this rate hike cycle too.

Why? Because elite landlords simply keep raising their rents.  These higher cash flows translate to higher dividends, and higher stock prices, regardless of what the Fed is up to.

For example, almost three years ago I recommended Medical Properties Trust (MPW) to my Contrarian Income Report subscribers. It was paying nearly 8% at the time – discarded to the bargain bin because the first-level types fretted that higher rates would harm its ability to collect rent checks from its hospital operators.… Read more

By most measures, 2018 has been a solid year for U.S. investors. Including dividends, the S&P 500 has generated a 10% total return in the first three quarters of the year.

However, trading volatility has steadily increased throughout 2018 and the Fed just enacted its third of an expected four interest rate increases this year. Sprinkle in some cautionary economic headlines coming out of Europe and the chances are increasing that stocks could experience a pullback between now and the end of the year.

Rather than worry or panic about any selling that could materialize in the near term, I’ve created a list of low-dollar stocks with secure dividends that could weather any potential storm.… Read more

Members of my CEF Insider service often tell me they’d love to know a lot more about the people at the helm of closed-end funds—the good, the bad and the ugly.

It makes sense: after all, when you buy a CEF, these folks play a huge role in whether you notch a big gain (and income stream) or, well, not so much.

An Insider’s View

As one of the few analysts who focuses solely on CEFs—especially smaller CEFs—I’ve had several conversations with managers at CEF companies from across the market.

A common theme? They’re all frustrated that the average investor doesn’t know the many benefits CEFs deliver.… Read more

Money-losing firm India Globalization Capital (IGC) found the magic formula. They put the 2018 and 2017 investing buzzwords side-by-side:

1. Cannabis, and
2. Blockchain.

The savvy marketers at IGC then introduced an energy drink infused with hemp, and wow, what a rush!

IGC Rises 10-Fold on Buzzwords

We level-headed contrarians should stay away from this circus. In fact, you need to be honest with yourself about the latest weed craze. If you’re tempted at all to buy this junk, it’s better if you change the channel.

Many marketers know that you and your peers are fixating on these parabolic charts. It’s going to end in tears, but they don’t care.… Read more