Articles

How to Outsmart the Machines for REIT Yields up to 11.1%

Brett Owens, Chief Investment Strategist
Updated: August 9, 2019

If you’re a serious dividend investor, you should never trust a stock screener.

They might be OK for blue-chip stocks like Pfizer (PFE) and Procter & Gamble (PG). But these stocks don’t pay enough to properly fund a retirement portfolio powered by dividends anyway.

The big problem with screeners is that they get tripped up when yields get serious. They handle the 2% and 3% payers alright. They’ll spit back a fairly accurate dividend payout ratio based on earnings, and give you price-to-earnings metrics that are fair enough.

But high-yield structures like REITs and BDCs? Forget it. They break the machines.… Read more

These “Chameleon” 4% Dividends Turn Into Huge 6%+ Payouts

Michael Foster, Investment Strategist
Updated: August 8, 2019

Municipal bonds are the perfect play for this trade-war obsessed market—they’re far more stable than your typical stock and they pay bigger dividends, too.

And today I’m going to show you how to tap the very best “munis” for a 4.3% average dividend yield.

That’s just the start.

One of the three “steady Eddie” buys I’ll show you below even pays an outsized 4.7% dividend. Plus, it trades at a discount to its “true” value, adding to its already legendary stability and setting us up for some nice gains, too.

Turning a 4% Yield Into 5.8%

Here’s something that’s often overlooked about muni bonds: their payouts are tax-free to most Americans.Read more

How to Rent-a-Dividend-Machine for 6% Yields, 52% Returns (Per Year!)

Brett Owens, Chief Investment Strategist
Updated: August 8, 2019

Nine weeks ago, our fellow income investors were concerned about rising tariff tensions and falling stock prices. (Sound familiar?) So, in late May, we discussed seven dividend payers (yielding 6% on average) that wouldn’t go down if stocks-at-large kept dropping.

The broader markets soon reversed, as they usually do when pessimism is running high. But our defensive dividend machines did even better. Five out of my seven “never go down” plays beat the S&P 500. On average they returned 12.5% (including their big dividends) over the last nine weeks. A percent a week or better will sure boost your retirement account quickly!… Read more

3 Hopeless ETFs Ranked From “Disastrous” to “Poor” (You likely own #1.)

Brett Owens, Chief Investment Strategist
Updated: August 6, 2019

Is last week’s rate-cut temper tantrum the start of a bigger meltdown?

That’s the big question—and today we’re going to do what we have to do to protect our nest egg—and set ourselves up for big gains (and dividends) in the long run.

That means we may only have days to prepare—maybe even hours.

The one thing we’re not going to do? Sell and go to cash.

Because I know I don’t have to tell you that “money under the mattress” pays no dividend—and isn’t even safe, for that matter: you’re guaranteed to bleed money after inflation!

No way.

Instead, we’re going to play it smart—deftly pruning our portfolio of laggards and shifting into a set of low-key dividends that will balloon our income (and nest egg) for decades to come.… Read more

Warning: This “2-Step” Retirement Blunder Will Cost You 9.8% Dividends

Michael Foster, Investment Strategist
Updated: August 5, 2019

I run into a lot of investors who think retirement investing is a two-act play.

In Act 1, when you’re younger, you try to balloon your nest egg with high-risk growth stocks that pay little (and often no) dividends.

Then, in Act 2, as you near—and enter—retirement, you pivot to the big dividends you need to pay your bills.

Trouble is, this approach exposes you to far too much risk, so today I’m going to show you a better way.

Your Best Play: Big Dividends and Growth—Right Now

I’m talking about 10 funds that can hand you dividends up to 9.8% right now, plus annual returns of 10% or more.… Read more

Undercover Yields Up to 8.3% That the Computers Overlooked

Brett Owens, Chief Investment Strategist
Updated: August 2, 2019

We buy real estate investment trusts (REITs) for their yields first and foremost. Show us the money!

Dividend growth is good, too. A 4% yield looks twice as nice if we believe our income will double in just a few years.

After all, a 4% payer that boosts its dividend by 10% won’t yield 4.4% for very long. Investors will buy its price up and in doing so bid its payout per share back down. And that’s OK. This dividend-powered appreciation is actually the easiest way for us to double our money with safe REITs!

But dividend safety really is the key here.… Read more

Sick of Overpriced Stocks? Buy This 9.7% Dividend at a 16% Discount

Michael Foster, Investment Strategist
Updated: August 1, 2019

There’s an intriguing trend showing up in second-quarter earnings. And today I’ll show you how you can jump on it with a cheap closed-end fund (CEF)—I’m talking a 16% discount here.

Then there’s the dividend: a “hidden” 9.7% yield. I’ll say more about that shortly.

This trend might sound boring at first, but it’s crucial, because it proves that most folks have the wrong idea about the markets: they should be buying instead of fretting over interest rates, the next recession or other headline-driven fears.

But now more than ever, it’s where you buy that’s important. And the overlooked trend I’ve discovered proves that you need look no further than our own backyard: in the USA.… Read more

These 21 Safe Bond Funds Pay Up to 8.5% and Never Go Down

Brett Owens, Chief Investment Strategist
Updated: July 31, 2019

“Brett, give me some bond funds with big yields. And it’d be great if their prices never went down!”

My money manager friend was chasing the holy grail of retirement income. He wanted safe payouts from bonds to balance his clients’ stock exposure.

“How about the Artisan High Income Investor Fund (ARTFX)?” I replied. “It pays a steady 6% or so. And it never goes down.”

Same S&P Yearly Return, Less Heartburn

“The only problem is that it never goes up, either. And that’s prevented me from recommending it to my Contrarian Income Report subscribers.”

Our CIR portfolio holds eight bond funds today (versus ten stocks and stock funds).… Read more

Jay Powell’s Favorite REITs for 5.3% Yields and 301%+ Gains

Brett Owens, Chief Investment Strategist
Updated: July 31, 2019

Will interest rates really get the chop everyone thinks they will as 2019 rolls into the home stretch?

The smart money certainly thinks it knows. Beyond the July 31 rate cut (which the pros see as all but in the can), futures traders predict two more chops—in September and December:

But here’s something no one will tell you: not a single person outside of Jerome Powell has any clue what the Fed will do next.

Not futures traders. Not your adviser. Certainly not the talking heads on CNBC.

That’s why we’re going to dive into three “forever” stocks that beat the market no matter what rates do.Read more

These 2 “Silent Wealth Builders” Are Set to Soar (and yield 6.8%+)

Michael Foster, Investment Strategist
Updated: July 29, 2019

Real estate investment trusts (REITs) sound boring, but the truth is they’re the hottest investments out there. And today I’m going to give you two great ways to buy in: both are REIT-focused funds with big yields—I’m talking 6.8% and up!

You’ve no doubt noticed that REITs get little attention in the financial press. That’s because the media is obsessed with stories of big growth or big failures, and REITs are rarely one or the other. Instead, they help you quietly build wealth by providing big income and gains year in and year out.

Today I’m going to give you three reasons why REITs are a great buy now.… Read more