Articles

5 Ways to Profit From the Trade War (and Grab 14.5% Dividends)

Michael Foster, Investment Strategist
Updated: June 3, 2019

There’s really just one way to cushion your portfolio from this trade war.

It’s one of the oldest pieces of advice there is:

Diversify.

I know. You’ve heard that one tons of times before, right? Well, there’s a twist.

Because I’m not going to just tell you that you need to spread your money out among stocks and bonds, say. Or that you need to add more healthcare or tech stocks or (heaven forbid) low-yielding Treasury notes.

No way. I’m talking about diversifying between countries.

Because the truth is, most Americans have too little exposure to the rest of the world in their portfolios.… Read more

Weekly Market Summary: Bond Rally Spooks Stocks in Short Week

David Peltier, Senior Investment Analyst
Updated: June 1, 2019

U.S. markets were closed on Monday for the Memorial Day holiday, but the selling pressure on stocks did not take a break this week.

There was little progress in trade talks between the U.S. and China. In fact, President Trump declared trade war in a new theater on Thursday, proposing a 5% tariff on all goods imported from Mexico, beginning June 10.

This continued global economic uncertainty sent investors looking for safety in bonds. Short-term rates moved so low on Wednesday that the yield on 3-month bills T-bills was 14 basis points below 10-year notes, which is a level of inversion that hasn’t been seen since the Financial Crisis.… Read more

5 Safe, “Secret” Dividends Up to 11.9%

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

I love “secret dividends.” They’re one of the few safe ways to collect yields up to 11.9% in a 1.9% world!

They’re also a great way to protect your portfolio against big market pullbacks, too. If you find yourself wincing every time you check your stocks, perhaps some secret dividends would help steady the ship.

“I’m 11 years older now. Brett, I just can’t have a repeat of 2008,” my new subscribers often share.

“Now tell me which of these dividends will survive a bear market like that. I want to buy the safest yields,” they continue.

Fortunately I’m no stranger to dividends that thrive in bear markets.… Read more

Revealed: 3 Big Dividends the Government Pays You to Own

Michael Foster, Investment Strategist
Updated: May 30, 2019

What if I told you I’d found a way to protect your portfolio from this twitchy market without giving up big gains (and income)?

My guess is you’d be interested—if a little skeptical.

I get that. A skeptic is a good thing to be, in investing and pretty much everything else.

So let me tell you right away that I’m talking about one of the most unsexy investments you can think of—but also one poised for some very nice gains as volatility drives scared investors to look beyond stocks.

I’m talking about municipal bonds, debts issued by state and local governments to fund badly needed infrastructure projects.… Read more

This 7-Stock “Never Go Down” Portfolio Pays 6% Today

Brett Owens, Chief Investment Strategist
Updated: May 29, 2019

Where’s the market going from here? Well, if you own these seven “never go down” dividend payers, you probably don’t care.

My readers are often asking for safe income ideas. For stocks that pay dividends and never drop in price. It’s a very difficult task, but not quite impossible.

For most long-term investors who want big dividends–I’m talking 6%, 7% and even 8%+ current yields–I recommend a combination of a contrarian and “No Withdrawal” approach. This consists of buying safe dividend-paying bonds and funds when they are out of favor and holding them through any market turbulence.

Big dividends are the rubber duckies of the investing world.… Read more

Here’s How I’m Investing for 6% Dividends and 852% Gains

Brett Owens, Chief Investment Strategist
Updated: May 28, 2019

Think it’s impossible to bag 852% gains and a 6% dividend in one stock?

It’s not only possible—it’s easy! I’m going to give you the three (and only three) simple steps you need to do it yourself today.

Let’s start with the one thing we’re not going to do: follow the “buy and hope” crowd into a fanboy (and girl) favorite like Netflix (NFLX).

In search of big gains, first-level investors crowd into a non-dividend-payer like Netflix, simply because it’s delivered stunning growth in the past. And they almost always dive in when the stock is at the height of its popularity, like last July, when NFLX was scraping all-time highs.… Read more

Warning: These 10 Funds Could Pull a 2008 Repeat (sell now)

Michael Foster, Investment Strategist
Updated: May 27, 2019

I want to show you 10 funds that yield up to 9.4%—and that you should sell now (or steer clear of if you don’t own them).

Of course, near-10% yields are attractive, and I often see attractive funds yielding as much as (and more than) the 10 funds I’ll reveal in a second. But sometimes a big yield is too good to be true, and that’s the case here.

The reason I’m saying this now? These funds have been on a tear in the last few months, which is far out of character for both them and their asset class.

I’m talking about utilities funds.… Read more

Weekly Market Summary: Lower Rates Highlight Value of Dividends

David Peltier, Senior Investment Analyst
Updated: May 25, 2019

A three-day holiday may be just what the U.S. stock market needs. Investors turned more defensive in the last week of trading before Summer kicks off on Monday with the Memorial Day holiday.

Traders bought bonds this week, pushing rates lower, while selling stocks. The trade war between China and the U.S. heated up again and investors were spooked by reports of slower growth in Europe. UK Prime Minister Theresa May also said on Friday that she will step down in June, after failing to execute a Brexit strategy in the past three years.

Elsewhere, crude oil posted its worst one-day performance for 2019 on Thursday, though remains 25% higher year-to-date.… Read more

17 Monthly Dividends That Pay $2,629 Per Month

Brett Owens, Chief Investment Strategist
Updated: May 24, 2019

Mortgage payments. Car payments. Cell-phone bills. Power bills. Water bills. Credit card bills.

What do they all have in common?

Nobody likes them, of course. But more importantly, they all arrive relentlessly month after month.

That’s fine when you have a normal job that pays you every couple of weeks or every month. But that regular bill routine becomes considerably more daunting once you hit retirement, when much of your regular income is coming from your portfolio of dividend paying stocks … which pay out every quarter, not every month.

Investors in turn often build complicated dividend calendars that get knocked out of whack whenever they ever have to cut back on certain stocks.… Read more

2 Massive Dividends (Up to 13.7%!) About to Collapse

Michael Foster, Investment Strategist
Updated: May 23, 2019

Right now, there are two closed-end funds (CEFs) you need to sell immediately—or steer clear of if you don’t already own them.

Before I reveal them, I want to explain the unmistakable sell signal both are showing as I write this. You can easily use it to “crash-test” the CEFs in your own portfolio, or spot CEF bargains.

A Built-in CEF “Sell Alert”

I’m talking about the difference between the fund’s market price and per-share net asset value, or NAV (which is just another way of saying the value of the CEF’s holdings).

CEFs usually trade at a discount to NAV, and if you’re a subscriber to my CEF Insider service, you know we’ve banked some impressive returns by waiting for those discounts to get ridiculously wide, buying, then holding on as the discount reverts to normal, pushing the share price higher as it does.… Read more