Articles

Get a Private Equity Edge with 13.7% Yields

Brett Owens, Chief Investment Strategist
Updated: July 7, 2016

Contrary to popular belief, you don’t have to be a multi-millionaire to invest in private equity. In fact, if you have as little as $10 available in a brokerage account, you can do it.

This is especially important nowadays, because the stock market just isn’t cutting it anymore. Let’s face it: 2016 has not been that great for stocks. As we pass the halfway mark for the year, the S&P 500 is up 3%, meaning you’re looking at a 6% gain by the end of the year if the trend continues. For sure, that’s better than Treasuries, but it’s still not that great on a risk-adjusted basis.… Read more

5 Dividend Stocks With 3% Yields and 335% Upside

Brett Owens, Chief Investment Strategist
Updated: July 6, 2016

Since the salad days for stocks ended with the 2008 financial crisis, the new normal has been slower than average economic growth coupled with friendly (low) interest rates.

The financial world hasn’t returned to, well, normal due to some setbacks (Brexit most recently) and more headwinds (too much debt and bad demographics in developed economies). Post-Brexit, the “smart money” is now wagering that interest rates are all-but-certain to stay low for longer (til 2018, at least).

In a world where growth and yield remain scarce, assets that provide one or the other will be in hot demand. And how about stocks that provide both?… Read more

How I’m Getting 8.5% Yield From a 4-Fund Tech Portfolio

Brett Owens, Chief Investment Strategist
Updated: July 5, 2016

Dividend growth investors today are lucky to get 3% from their large cap stocks while tech investors endure painful volatility without any short-term reward. But I know how to get the best of both worlds with a 4-fund tech portfolio that generates 8.5% income. Best of all, you can collect these yields while you wait for these companies’ massive growth to drop through to their bottom line into shareholders’ pockets.

How? Simple: covered calls. Well, not so simple—call options are a complicated strategy that, if used without care and guidance, can turn a portfolio into a big loser. So we must create a portfolio that we can trust while selling options that won’t get assigned.… Read more

The 3 Best Dividend-Growth Stocks to Buy for the Next 6 Months

Brett Owens, Chief Investment Strategist
Updated: July 4, 2016

We’ve hit the midpoint of 2016, which makes it a great time to review your portfolio and shop for some top-notch dividend-growth stocks as we head into the back half of 2016.

In a moment, I’ll give you three of my favorites to buy now.

The good news? With the market up just 2.4% so far this year, buying now means you probably won’t pay much more than you would have back in January.

SP500-2016-Chart

As I’m sure you’ll recall, the S&P 500’s nosedive started before we’d even put the New Year’s confetti away. By mid-February, it had shed 11% of its value.… Read more

4 Brexit Bargains With Big Dividends

Brett Owens, Chief Investment Strategist
Updated: July 1, 2016

Right now, the market only cares about one thing: Brexit. The market is volatile—which means now is a time to buy, buy and buy more as fears drive stocks too cheap.

But the simple fact is no one knows exactly how Brexit will impact the world’s various economies. For sure, there’s a consensus that Britain will take a hit—how big of a hit, though, is uncertain. And then there’s fear that political instability will impact Europe. But why should that cause the S&P 500 to lose 5% in just a few days?

Simply put: it shouldn’t.

Which is why I’m getting greedy as the world gets fearful.… Read more

How To Brexit-Proof Your Portfolio

Brett Owens, Chief Investment Strategist
Updated: June 29, 2016

Britain’s out – should you care? It depends on what’s in your portfolio today.

Here’s a five-point checklist to help you Brexit-proof your nest egg. There’s no shortage of noise floating around about the potential ramifications. Let’s separate the “first-level” headline worries from the second-level realities – and make sure your portfolio is set to thrive regardless of the nonsense coming out of Europe.

Reality #1: Interest Rates Here Aren’t Going Anywhere

Regular readers know I’ve been skeptical of the Fed’s “tough talk” about raising rates ever since it started. Perfectly good high paying issues have been pummeled by their empty threats of sustained hikes, providing contrary-minded income investors like us with excellent buying opportunities.… Read more

The Post-Brexit Retirement Portfolio: 4 Buys for 100% Gains and 6.0% Yields

Brett Owens, Chief Investment Strategist
Updated: June 27, 2016

All weekend long I’ve heard from investors terrified of Brexit’s impact on their nest eggs. For the most part, they are in or near retirement—and now more than ever they are looking to shift more of their portfolio into fixed-income securities.

The problem? These are grim times for fixed-income investors. A one-year CD yields around 1.25%, and 10-year Treasuries aren’t much better, at 1.6%. That’s flirting with an all-time low—and leaves you with a loss after inflation.

But don’t worry. There are still good places to hunt for yield in the fixed-income space. In a moment, I’ll give you two options that together pay out a tidy 6.0%, so a $250,000 investment in each one would bring in a nice $30,000 income stream.… Read more

The Fatal Flaw in the 4% Retirement Myth – And the Solution

Brett Owens, Chief Investment Strategist
Updated: June 22, 2016

Are you relying on this casino for your retirement income?

The S&P 500, after two major heart palpitations, sits 1.2% lower than it did this time last year. That’s a tough roller coaster to ride if you actually need the money you invest in stocks! Plus, the index only pays a 2.1% yield due to its elevated price levels. That’s not very much income.

SP500-1Year-Chart

Then again you probably know this already. And perhaps you’ve attempted to stabilize your retirement ship by investing only in America’s best blue chip stocks. That’s definitely preferable to the broader market, but do me a favor and check out the following two charts.… Read more

3 Top Buys for Your Dividend-Growth Portfolio

Brett Owens, Chief Investment Strategist
Updated: June 20, 2016

A couple weeks ago, I showed you a 4-stock dividend portfolio that’s throwing off a gaudy 7.3% yield today.

It’s ideal if you’re retired and leaning on your investments to pay the bills. But if you’re looking to grow your nest egg, your best bet is to reinvest your dividends and harness the magic of compounding.

Today I’ve got three stocks for you that are perfect for doing just that.

But first, I’d say the name of the game here isn’t necessarily a high current yield; instead, you’ll want to home in on stocks that boost their payouts year in and year out.… Read more

3 Funds With 10% Yields AND Almost No Taxes

Brett Owens, Chief Investment Strategist
Updated: June 17, 2016

If you live in America, you can get tax-free dividends over 5% by investing in incredibly low risk bond funds. And I’m going to show you how to do it today.

You probably know that tax-free is a big deal. If you’re in a 25% tax bracket, a 5% tax-free yield equates to a 7.4% taxable yield. In the top 43.4% bracket? You’re banking a payout above 9%.

How is this possible? Simple—with municipal bonds. “Munis” have been a long-term favorite of retirees because of their tax-exempt status and low default rates, but now is a better time than ever to jump into the market.… Read more