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Andrew, Arthur and Paul knew their REIT stock was too cheap. So, last August 21, the trio slapped down three independent bets on their firm’s stock using their own money. Their reward? Quick 26% returns:

REIT Moguls Know Best, for Quick 26% Gains

Did they time the entire sector bottoming? No – Vanguard’s Real Estate ETF (VNQ) dropped 5% over the same time period. But that was just noise, because these boys knew their own business. They cherry picked the bargain.

It shouldn’t be a surprise that a chief financial officer (CFO) and his cronies would nail this trade. After all, finding deals with real estate investment trusts (REIT) is a straightforward 2-step process:

1. Find a high relative yield, and
2. Buy it if “first-level worries” will soon prove fleeting.

Today we’re going to dive into the two “cheapest” corners in the S&P 500. Because with the terrible performance these 2 sectors have put in this year, you could think both are bargains now.

But the truth is, only one of these sectors is worth buying into now (I’ll name 4 specific stocks in a minute). In fact, the last time we saw a market like today’s, stocks in this overlooked pool spiked 41%!

The other sector? A textbook “value trap”—it’s cheap for a reason, and is about to plunge further.

You can see the 2 sectors I’m talking about in this chart from Yardeni Research:

The 2 worst performers, consumer staples (the purple line) and real estate investment trusts, or REITs (beige line) have flopped 12.4% and 8.5%, respectively.… Read more

Remember when stocks took some of the biggest nosedives in market history back in early February?

I know that sounds like a ridiculous question, but I ask because many folks seem to have forgotten, with stocks quite a bit calmer now than they were in those days, even though they’ve seen a little more turbulence recently.

But it’s not too late for us contrarians to go on a bargain hunt—and we’re going to do it with my tool of choice: a high-dividend (I’m talking 7%+ cash yields here), yet easy-to-buy fund called a closed-end fund (CEF).

Wall Street’s Hidden Winners

First off, don’t be surprised if you’re not familiar with CEFs.… Read more

Whenever a dividend payer goes on sale, it’s a chance for you and I to make a lot of money and collect steady income. Today, we’ll highlight four stocks that are worthy of our review.

Not only do we bank a higher yield, but we can also enjoy price appreciation as shares rise in value. This is the benefit of combining value and dividend investing.

For example, let’s say we like a stock at $40 that is paying a $1.50 yearly dividend. If we like it at $40, then we should love it at $30 – because our potential upside (and hence total return including dividends) is that much greater:

The same exact stock.… Read more

By this point, you’ve probably heard that earnings season has been off the charts so far.

But there’s a problem.

You see, corporate profits are so good that the big buying opportunity I’ve been telling you about for months is vanishing fast!

Why? Because US firms are too profitable, and economic growth is too strong for the herd to not want to pile into stocks very soon.

So today we’re going to front run those folks by buying before they do.

In a moment, I’ll show you not only why you should buy now, but 2 funds you that are solid bets for serious upside and a huge dividend stream of 7%.… Read more

Most investors live in the past and fixate on dividend track records rather than a payout’s forward prospects. That’s too bad for them, but it provides opportunity for us to bank big returns that shouldn’t be available in any “efficient” market.

By looking ahead, we can identify the dividends that are likely to grow the fastest. And when we identify payouts that are poised for yearly raises of 15%, 20% or even 25% or more, we should buy those stocks and enjoy annual stock price gains in that neighborhood.

Sure, it isn’t quite that simple. But it’s pretty close. Let me explain my entire dividend growth strategy first – and later, I’ll also share my 7 dividend payers with 100% to 200% price upside with you.… Read more

You and I both know that dividends just don’t get much respect from most folks.

But most folks have it all wrong. I’ll show you why in a moment (I’ll also reveal 2 “accelerating” dividends to put on your buy list now).

First, it’s easy to see why dividends are (way too often) an afterthought: it’s tough to get excited about them when the typical S&P 500 name dribbles out the measly 1.9% yield it does today.

It gets worse when you look at the US inflation rate: 2.1% as of March.

So at best, you can hope your dividends offset inflation, while you hope the underlying stock price soars.… Read more

We need to talk about a rare double discount in the stock market that’s out there now—just waiting for us to jump on it.

And doing so couldn’t be easier. It all comes down to 3 funds primed to spike when one of these discounts closes—and then spike again when the second one snaps shut!

Both of these ridiculous markdowns are already starting to narrow, so we need to make our move soon.

One other thing: these 3 funds pay massive dividends—from 7.4% to 11.7%!

Before I reveal the names of these funds, let’s talk about the first discount: the massive undervaluation of the stock market—and when we can expect investors to go from extreme fear to extreme greed.… Read more

Business development companies (BDCs) are the kings of yield right now, and it’s not even close. As I write, the average yield in the space is 9.5%, and more than half of all publicly traded BDCs boast a yield in the double digits.

That’s thanks to a long drubbing among these companies – but for the first time in a while, things are starting to look up in this high-yield arena. And right now, I have my eye on three glimmers of hope in the space that are throwing off 9% to 10% dividends.

2017 was a downright dreadful year for BDCs, which managed to even underperform bonds despite their high yields.… Read more

Today I want to show you a beaten-down sector that has a long history of crushing the market—and 4 funds that should be on your radar now.

These 4 funds are a great place to pocket dividends up to 10.9% (or $10,900 a year on a $100k investment) while you wait for the market to realize that it’s discounting their industry far too much.

I’m talking about 4 standout fund buys from the biotech sector.

Biotech has fallen over 10% from its 2018 high and is now down a bit more than the broader market. Just look at the iShares Nasdaq Biotechnology ETF (IBB) vs.… Read more