5 Ways to Find the Best Long-Term Dividend Stocks

Brett Owens, Chief Investment Strategist
Updated: November 25, 2022

We love dividend stocks because they pay us now. But hey, I’m greedy. And when I research income plays, I want more than just those payouts.

I’m looking for price gains, too. Give me a dividend with a stock that could potentially double, and we’re talking.

These types of stocks are rare, but they’re not impossible to find. They tend to share five key “dividend double” characteristics. Let’s discuss them now.

Dividend Key #1: Annual Dividend Growth

The core trait of an excellent long-term dividend holding is dividend growth, for numerous reasons.

For one, dividend growth is a pretty sure sign that the underlying company has the financial fortitude to pay the bills.… Read more

3 Bargain Funds With Huge Yields (up to 13.7%) to Consider for 2023

Michael Foster, Investment Strategist
Updated: November 24, 2022

We’re in one of the trickiest times I’ve seen in my investing career: inflation is receding and we’re well positioned for gains next year. Yet after the year we’ve had, many folks are still hesitant to jump into the market.

Even the 12%+ dividends we’re seeing in our favorite high-yield investments, closed-end funds (CEFs) haven’t been enough to tempt many of them.

I get it.

This period reminds me of the early months of 2009, when “green shoots” were appearing in the economy and markets, but investors were still too scarred by the preceding plunge to get in. But those who did buy then—around the bottom in early March 2009—have done very well:

Buying in Times of “Investor Shell Shock” Pays Off

We’ve got a similar opportunity now.… Read more

The Simple, Safe Way to Bank 15% Gains in 2023

Brett Owens, Chief Investment Strategist
Updated: November 23, 2022

Why chase the market when we can let 15% per year—every year—come to us?

This is the perfect time to buy what I call “hidden yield” investments. These are stocks that dish out dividends today. But, more notably, they have an important catalyst coming in the year ahead that will help boost their stock prices.

This trigger is so powerful that it sends these stocks sailing by 15% or more per year, every year. Which is truly great when other equities and even bonds are getting buried around us.

We’ll talk about these stocks and their “dividend spark” in a moment.… Read more

This “Diesel-Powered” Dividend Is Up 400% (With a Big Hike Likely in ’23)

Brett Owens, Chief Investment Strategist
Updated: November 22, 2022

26 days.

That’s how much diesel America has in its collective tank. Imagine that: a fuel that powers the shipment of goods pretty well everywhere. And only 26 days of it left.

It’s a crisis no one is talking about. Except folks in the shipping business. Or those who’ve had to buy home heating oil (a diesel derivative) recently.

Okay, I’ll admit I’m being a tad dramatic, as that 26-day figure is a rolling number: new diesel is added at one end as it’s burned at the other. But even so, the amount of diesel in storage has sunk to its lowest levels in 70 years.Read more

An 11%+ Dividend Plan Your Adviser Won’t Tell You About

Michael Foster, Investment Strategist
Updated: November 21, 2022

Despite all the doom and gloom out there, there has never been a better time to retire.

I know that sounds absurd, but it’s true, especially if you plan to retire on dividends alone. With the 2022 crash crushing stock prices—and driving up dividend yields—it’s prime time to grab some outsized payouts for cheap!

But the blue chips that everyone buys are not the answer. Because even with the selloff, the average S&P 500 stock’s yield has risen to … 1.6%.

No way that’ll cut it, and Treasuries won’t cut it, either. Buying the 10-year at the current 3.8% yield only gets you $19K a year in dividends on your $500K—poverty-level income.… Read more

Value-Priced Income Stocks Yielding Up to 9%

Brett Owens, Chief Investment Strategist
Updated: November 19, 2022

Thank you, bear market. Thanks to a terrible 2022, we have four dirt-cheap dividend payers dishing up to 9%.

These are cash cows I’m talking about. Companies that gush free cash flow and shovel it back to us in the form of big yields.

Earnings are accounting numbers. Cash flow is real life.

And it’s not out of deals, either—in fact, over the past few days, I’ve kept increasingly close watch over a four-pack of cash cows with high yields of up to 9% and deliciously low prices.

But given a still-dangerous market environment, we need to focus on quality.… Read more

This Turnaround Dividend Play Could Break Out in 2023

Jeff Reeves, Senior Investment Analyst
Updated: November 18, 2022

Income investors can, in many ways, be even harsher critics than growth investors.

That’s because while some traders can delude themselves into believing the fancy growth stories of biotech or software startups … for “risk off” investors interested in dividends, the numbers matter.

And when a company isn’t measuring up, it shows.

There’s no greater proof of that than tools company Stanley Black & Decker (SWK). The stock has stumbled dramatically over the last year as supply chain pressures brought about the pandemic were compounded by rising raw material costs.

Thanks to weak margins and flat revenue, the stock is down a gut-wrenching 56% or so year-to-date.… Read more

This 13.4% Monthly Dividend Is Absurdly Oversold

Michael Foster, Investment Strategist
Updated: November 17, 2022

Savvy contrarians know that when markets crash, the most beaten-up sectors are often the ones that lead the (inevitable) surge higher.

It’s one of the most reliable trends in investing. With their valuations (and dividend yields) crushed, these stocks are tempting bait for bargain hunters who like to run against the herd.

The 2008 financial crisis is a great example. Financial stocks, which were pummeled as millions of mortgages went bust, went on to soar after the market bottomed in ’09. So did real estate investment trusts (REITs).

Which is why I’m looking to roughed-up tech stocks, and tech-focused closed-end funds (CEFs), to lead the way in 2023.… Read more

SEC Yield Calculation (and Why It’s Better Than TTM Yield)

Brett Owens, Chief Investment Strategist
Updated: November 16, 2022

“Hey Brett. How’s the weather out there in California?”

My usual reply is “warm and sunny.” Simple. Gives the asker what they expect and keeps the pleasantries moving along.

If I was one for small talk, I would be tempted to mix in a confusing and way-too-detailed response. Like this:

“The weather? Well, Sacramento hit a low of 27 degrees in the early morning hours of February 24. And we cooked at an extreme 116 degrees on September 6. It has been quite the 12 months!”

Twelve months? Who cares about 12 months? Well, bond funds do.

Last week, we highlighted the iShares 20+ Year Treasury Bond ETF (TLT): “It (TLT) boasts a 4.1% yield and has some serious upside potential.”… Read more

2 Big Dividend Hikes Set to Drop Soon (Tickers Revealed Below)

Brett Owens, Chief Investment Strategist
Updated: November 15, 2022

Now is the best time to roll out our favorite dividend “hack.” It’s a sneaky-smart strategy that lets us “time” the market for soaring dividend payouts (and a steady drip of price gains, too).

Our plan consists of two simple steps, which we’ll look at now. Then I’ll name two stocks that are perfect for this strategy. Both look set to roll out big dividend hikes soon.

Step 1: Buy Just as a Payout Hike Is Announced

We’ll start by “timing” our buys just as dividend hikes are announced. That’s a veteran move because a company’s stock almost always rises with its payouts—a predictable pattern I call the Dividend Magnet.… Read more