Articles

GOP Tax Plan Will Send These High Yielders Soaring

Michael Foster, Investment Strategist
Updated: December 7, 2017

The tax reform debate in Washington is roiling the municipal bond market—and that’s setting up a screaming buying opportunity for contrarians on the hunt for income.

I’ll tell you why, and show you exactly how to cash in, in a moment.

First, if you’ve been watching “munis” for any length of time, I probably don’t have to tell you that muni-bond investors detest uncertainty.

That’s because they’re risk-averse folks who just want a high, tax-free yield on their money.

After all, that’s what municipal bonds are for; they offer higher yields than US Treasuries; they’re untaxed for most Americans, unlike federal bonds and stock dividends; and their prices don’t fluctuate much.… Read more

The Best 6%+ Yields for the New Tax Plan

Brett Owens, Chief Investment Strategist
Updated: December 6, 2017

As income investors react to the new tax plan, it’s a good bet that some are overreacting to certain aspects of it. They always do.

There’s confusion between high yielding fixed income, and pure junk. There’s also a flood of tax-advantaged paper about to hit the market, creating bargains for smart buyers.

The result? Yields up to 10%, with some price upside to boot!

Bargain #1: “Smart” High-Yield Bond Funds for 7.5%+

If you hold high-yield (often called junk) bonds, you may have noticed they’ve sold off as the Republicans’ tax talk became serious. They’ve taken down other assets, too – some for good reason, some not.… Read more

The Ultimate 3-Step Strategy for Big REIT Profits

Michael Foster, Investment Strategist
Updated: December 5, 2017

I’ve spoken to a lot of investors who are still scared of real estate after the housing bubble burst in 2008. These folks have a lot of cash on the sidelines, and they’re desperate for income, but they’re too scared to jump into real estate.

Usually when investors express these fears, I show them this chart:

Real Estate Beat Stocks in the Real Estate Crash

This is a chart of the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones REIT ETF (RWR). The latter only holds real estate investment trusts (REITs), which are companies that rent out real estate and pass most of the rental income to shareholders as dividends.… Read more

56% Dividend Growth From an Unstoppable Trend

Brett Owens, Chief Investment Strategist
Updated: December 7, 2017

It’s the biggest demographic tidal wave ever to sweep the US. And today I’m going to give you 3 quick ways to profit from it.

I’m talking about the retirement of the baby boomers—10,000 of whom are clocking out of the workforce every day.

And if you’ve been reading my columns, you know I’ve been banging the drum on the most obvious way to cash in: by investing in real estate investment trusts (REITs) that own senior-care facilities.

But that’s not the only way.

Today I want to show you 3 other investments that are turning the surge in America’s senior population into soaring dividends and double-digit annual gains.Read more

Your 2018 Wish List: 13 Funds Yielding 5%-10%

Brett Owens, Chief Investment Strategist
Updated: December 2, 2017

Let’s discuss 13 funds that offer substantial, retirement-fueling payouts, as well as diversification that will serve you well in most market conditions.

The second-longest bull market in history is long in the tooth, and Wall Street has baked in more than its fair share of the corporate tax cuts likely coming to the U.S. at some point. Diversification and dividends are the proverbial tortoise versus the high-growth hare – so it will pay to turtle up, especially if this go-go market goes sour next year.

You could dive into individual blue chips with long-standing payouts, but even some of the market’s most conservative, defensive names have swelled to outrageous valuations, putting them at risk for a reckoning should the bears take the wheel.… Read more

Dividend “Century Aristocrats”: Ranking 5 Buys Today

Brett Owens, Chief Investment Strategist
Updated: December 1, 2017

Today we’re going to rank the longest-lasting dividends on the planet – five stocks that have written checks to shareholders for at least a century.

Dividends don’t get more secure than that.

Think about what the world was like in 1917. The United States was in the midst of World War I. Girl Scout cookies and Converse Chuck Taylor All-Stars were in their infancy. And the Dow Jones Industrial Average made several attempts on the 100 mark.

Yes, 100.

Since then, the United States has suffered 16 recessions and a pair of depressions, including the granddaddy of them all, the Great Depression of 1929-1933.… Read more

These 10%+ Dividends Will Get Chopped in 2018

Michael Foster, Investment Strategist
Updated: November 30, 2017

I usually write about the beauty of closed-end funds (CEFs) and how we can tap them for yields of 7% or more while also beating the S&P 500 index.

Today I want to talk about the dogs of the CEF world.

And there are plenty of dogs to talk about—they’ll kill your returns while promising big income streams that aren’t what they seem.

It’s a shame, because a lot of these rotten CEFs attract first-level investors who don’t look beyond the dividend yield. As a result, these folks often get buyer’s remorse when they discover those big dividends were actually hiding a grim—and riskier—reality.… Read more

How to Double Your Bond Returns

Brett Owens, Chief Investment Strategist
Updated: November 29, 2017

Don’t be cheap when you buy bonds this holiday season (or ever, for that matter). Bargain shoppers, sadly, tend to be the most at-risk of outliving their fixed income portfolios!

But it’s easy for you and me to double up “regular” bond returns simply by swapping out popularity for quality.

Let’s walk through some of the most popular fixed-income plays today – and replace each with something that yields more (with superior price upside to boot).

The obsession with fees is understandable. Most investors are conditioned by their experience with stock-based mutual funds and ETFs to search out the lowest fees, almost to a fault.… Read more

The “Smart Money” Will Buy These 10%+ Yields in 2018

Michael Foster, Investment Strategist
Updated: November 28, 2017

If you’re a contrarian investor, you know that the market loves to overreact—and that mass hysteria can hand you some nice profits.

That’s because panicked first-level investors toss great investments over the side along with the bad. We’re happy to step in when they do, buy at a discount, then sit back and watch the price snap back.

This is exactly what Warren Buffett refers to when he says to “buy when there’s blood in the streets.”

And it’s even better if there are high dividend payouts on offer.

Funny thing is, these deals are often hiding in plain sight. In fact, one of the most popular stocks in the world was ridiculously underpriced just under two years ago: Apple (AAPL).… Read more

4 Cheap Dividend Growers to Buy Now and Hold Forever

Brett Owens, Chief Investment Strategist
Updated: November 27, 2017

Today I’m going to reveal my personal strategy for outperforming the market over the long haul.

It’s simple. All you have to do is buy dividend stocks—but not in the way most people think.

I’ll also name 4 terrific dividend growers you can buy now and safely tuck away in your retirement portfolio forever. More on those in a moment. First, we need to talk about…

The Wrong Way to Buy Dividend Stocks

When picking stocks for the long haul, many folks put too much emphasis on the current dividend yield.

Trouble is, the high yielders that could really make a difference to your retirement—I’m talking payouts of 6%, 8% and up—are getting scarce as the S&P 500 grinds upward:

Few Trophies for Dividend Hunters

Worse, a high yield can easily lead you onto the rocks, something many people learned the hard way with telecom operator Frontier Communications (FTR).Read more