Articles

Often as dividend investors we buy stocks that provide us with income now. We take the current yield and happily collect the monthly or quarterly payout.

Sometimes, though, it is wise to punt a bit of current yield today in exchange for serious upside tomorrow. Especially when a megatrend is unfolding, as we have in the energy sector today.

A dual boom in electric vehicles (EVs) and artificial intelligence (AI) tools is driving a transformation in power generation. New batteries are needed for storage. The grid is being tapped for more and more “juice.” This is a potential windfall for income investors who are tuned into this important energy transition.… Read more

In the last few weeks, we’ve talked a lot about “hated” dividends set to soar as mainstream investors get it wrong on Trump 2.0.

Last week, we covered utility stocks, “bond proxies” that look great here, and a 7.6%-yielding utility fund to buy now.

This week we’re shifting to another despised corner of the market, again thanks to the new administration—healthcare. But our play isn’t some middling payer, like 3%-yielding Johnson & Johnson (JNJ).

A 13% Dividend That Grows

Instead, we’re going to drop a “1” in front of that “3” and buy a 13%-yielding healthcare closed-end fund (CEF).… Read more

Today we’re going to use a simple strategy to (legally!) beat the tax man. The key is a (too) often-ignored group of funds whose dividends are beyond the reach of the IRS.

The low-risk assets behind this income stream really should be part of any income investor’s portfolio. And the three funds we’ll discuss below, which yield up to 7.3%, are a great place to start. Thanks to their tax-free status, their “real” yields will likely be considerably more for us.

Enter “Boring But Beautiful” Municipal-Bond Funds

Here’s the truth on taxes: If you’re an American and you receive any kind of income, you’re going to get taxed.… Read more

Stocks are climbing a wall of worry, which is a hallmark of bull markets. Higher equity prices really do require fear!

Today we’ll highlight the least-liked stocks on Wall Street. Why? Because each analyst has nothing to do but upgrade these plays from here. As always, we’ll focus on big dividends—I’m talking about yields starting at 6% and going all the way up to 24%.

Let’s recap our profitable sources of fear. First, the broader market per one of our preferred “vanilla gauges”:

Source: CNN Fear & Greed Index

While retail investors are fearful, analysts at large are quite bullish. At least on paper.… Read more

We contrarians love a beaten-up corner of the market—especially these days, when cheap stocks (and funds) are so thin on the ground.

Right now, real estate investment trusts (REITs) are that corner of the market: unloved, cheap and boasting high, stable dividends. And they have even more appeal with interest rates stabilizing and likely to move lower over time.

We’re not taking advantage of this opportunity by purchasing our REITs individually or through an ETF, though. Instead, we’re looking to REIT-holding closed-end funds (CEFs). These income machines, kicking out 8%+ dividends, are no less than my top contrarian income plays for 2025.… Read more

Inflation continues to creep higher. Meanwhile tariffs are here, and more are on the way.

Vanilla investors are rattled. The AAII (American Association of Individual Investors) Investor Sentiment Survey reveals 47% bears and only 28% bulls, its highest level of despair in a year.

Contrarians like us, meanwhile, are salivating. We like it when individual investors are down in the dumps. And it’s not just AAII members—CNN’s Fear and Greed Index has been floundering in fear territory for the last month:

Inflation fears? Tariff worries? Bring ‘em on!

Let’s talk inflation first. The basic spreadsheet jockeys are surprised—sad even—that the Fed may not be cutting rates at all this year.… Read more

Bonds (and bond proxies) are hated right now. That’s our shot at big dividends—because mainstream investors’ thinking here is totally backward.

We’re going to pounce, and use this opportunity to grab ourselves a huge 7.6% payout sporting an unusual “discount in disguise.”

Tariffs: Don’t Believe the Hype

The reason for this opportunity comes back to tariffs—which I admit, dear reader, I’ve heard so much about that I’m starting to dream about them at night!

The badly flawed logic most people are applying to tariffs is this: Tariffs will drive up prices, adding to an inflation rate that, according to last week’s CPI report, hit 3% year over year, up from 2.9% the month before and a mere 2.4% in October (and was ahead of expectations, to boot).… Read more

If you’re like most income investors, you’re on the hunt for stocks and funds that can stand up to a storm these days.

So that’s what I’m going to give you below—in the form of three “all-weather” closed-end funds (CEFs) kicking out an outsized 6.8% average yield.

They’ve stood firm through every headwind imaginable—wars, pandemics, inflation, you name it—and have done nothing but profit over the long haul. Through all that, this trio has kicked out annualized total returns (with dividends reinvested) of 15%+ each.

“Shock-Proofing” Your Portfolio, Crushing ETFs

These funds’ stellar returns come from both the sector they focus on—tech—and smart management that’s kept all three going strong.… Read more

President Trump has been talking about tariffs since 1989, when he advocated for a 15% to 20% tax on imports from Japan because of unfair trade practices. This is how he describes Canada, China, Mexico and Europe today.

Trump has already imposed a 10% levy on Chinese imports. Meanwhile, Mexico and Canada have secured a 30-day reprieve from planned 25% tariffs, contingent upon their commitments to bolster border security and curb the flow of illicit drugs into the United States.

More tariffs are coming. Trump says he is willing to take the short-term pain for potential benefits.

We contrarians don’t have to grit our teeth and suffer with stocks that are suddenly tariff losers.… Read more

No two ways about it: This stock market is getting twitchy, and it’s (frankly beyond) time for all investors to take it seriously.

Trade wars. The possibility of spiking inflation. The Fed’s “will they or won’t they” act around rate cuts. And then there’s the ongoing doubt about whether AI will deliver on its big profit promises.

Our 3-Step Volatility Plan: Boost Income, Cut Taxes—and Go Beyond Stocks

We’re all feeling it: The market heads higher, and every day it does, the voice in our head telling us that a fall is around the corner grows just a little bit louder.… Read more