Articles

Most investors are familiar with stock splits, but the real money is made when dividends “split.”

I’m talking about secure triple-digit returns in just 5 years (or less). And you could wind up with two dividend streams instead of one!

I’ve seen this strategy pay off time and time again.

And there’s really only one step: buy a recently spun off dividend-growth stock (or hold on to the “new” company if one of your holdings splits up) and tuck it away. Then watch as one—or both—take off into the stratosphere, cranking up their payouts as they go.

In the next few paragraphs, I’ll show you 2 spinoff stocks that have done just that, handing shareholders a 123% average return since they broke off from their parent companies no more than 5 years ago.… 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

I told you that the Infracap MLP ETF (AMZA) was a dog. Well, the fund just cut its dividend by 37%.

This is one of the biggest ETF payout cuts in recent memory, and it’s a gut punch to shareholders who rode out massive underperformance for the income tradeoff. That payout mattered. Just look at the difference between price returns and total returns in the chart below:

Just because a yield is wrapped in a fancy ETF wrapping doesn’t mean it’s safe.

This ETF dividend slash could be the first of several. So let’s talk about three ETFs – which pay between about 9% and 24% – whose dividends are far from secure.… Read more

The stock market is overdue for a correction (to say the least). And when the rising tide pulls back, certain dividend dogs will be exposed.

It’s all well and good to chase 5% and 6% dividends as “bond proxies” when the market continually grinds higher. It’s another story when stocks begin to wobble – and an entire year’s worth of yield is jeopardized in a down week!

Of course some dividend stocks will hold up just fine. But we’re going to pick on three that are likely to be exposed when the bullish music stops.

Gladstone Investment (GAIN)
Dividend Yield: 6.8%

Back in July, I highlighted Gladstone Investment Corporation (GAIN) as a business development company stud amidst a pair of BDC duds.… 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

“First-level” investors – those who buy and sell on headlines – mistakenly believe that real estate investment trust (REIT) profits will suffer if rates rise.

Sure, in the short run, the “rates up, REITs down” theory puts on quite the show. When the 10-Year Treasury’s yield rises, REITs usually fall. And when its yield drops, REITs usually rally. This inverse relationship tends to hold up over multiple days, weeks and even months:

A Short-Run Seesaw Between REITs and T-Bill Yields

However the “long view” shows that many of these short-term moves are merely noise. It is possible for REITs and higher rates to coexist in profitable harmony:

But Long-Run REITs and High Rates Can Co-Exist

Investors who are bailing on REITs are missing out, because they are currently paying their highest yields this decade:

Highest REIT Yields Since the Financial Crisis

Most income hounds get it wrong.… Read more

If you want to clobber the market in 2018—and beyond—then buying companies with accelerating dividends is an absolute must.

And I’ve got good news for you: there’s never been a better time to buy them.

That’s because dividend growth is on a sugar high: on January 6, research firm IHS Markit predicted that global dividends would jump 10% this year—a new record.

What’s more, if you’re looking to grow your nest egg fast, you’re in luck, because accelerating dividends are the beating heart of my personal 3-step system for banking 12% annual returns for life.

I’ll tell you all about this safe, simple approach, and why that 12% number is vital, in just a moment.… 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

Exchange-traded funds (ETFs) shattered growth records in 2017, with inflows topping $464 billion last year. The global ETF market now boasts more than $4.5 trillion in assets, and a large part of the appeal has been driven by dirt-cheap fees.

But many of these fund’s fees are “cheap for a reason.” We’ll talk about five today that lure investors in with appealing current yields – but then proceed to dump their dumb money out the back door.

These five funds may have sweet dividend yields, but they have produced sour total return results thanks to one fundamental flaw or another.

ETRACS Linked to the Wells Fargo Business Development Company Index ETN (BDCS)
Dividend Yield: 8.7%

One of the most basic appeals of the exchange-traded fund is the cheap diversification they provide.… 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