Articles

These 3 Dividends Could Grow Forever

Brett Owens, Chief Investment Strategist
Updated: March 21, 2016

Billionaire investor George Soros said it best: “Good investing is boring.”

Two great examples: dividend reinvestment plans (DRIPs)—an automatic way of building wealth that most investors ignore—and the S&P 500 Dividend Aristocrats.

Let’s take the second one first. Many of the 50 companies on the Dividend Aristocrats list peddle everyday staples like tape, telephone service and over-the-counter drugs—products that are about as humdrum as you’ll find.

These are household names like Colgate-Palmolive (CL), Kimberley-Clark (KMB), and Clorox (CLX). (I’ll give you the names of my three favorite Dividend Aristocrats in a minute.)

But these companies have a big edge over the flashy wearable tech and biotech stocks investors usually go gaga for: they pay steady dividends.… Read more

The 3 Best Dividend-Paying Telecom Stocks To Buy Now

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

Looking for high, safe income? If you’re like many investors, you probably look to electric utilities first.

But I think telecom stocks are a better bet right now. I’ll give you my top three in a minute. First, let me explain why.

The allure of utilities is obvious: you have to buy power whether the economy is soaring or tanking. Utilities also give you “China insurance,” because they’re almost entirely focused on the US.

But here’s the problem: after last year’s panic over rising interest rates sent utilities plunging, they’re back in vogue. Since January 1, the Utilities Select Sector SPDR Fund (XLU) has jumped 11.2%, while the S&P 500 is down 1.1%.… Read more

6 Cheap Dividend Growth Stocks

Brett Owens, Chief Investment Strategist
Updated: March 24, 2016

Growth at a reasonable price, or GARP, is an investing strategy that blends value and growth investing. Instead of just buying a stock that’s cheap, or one that’s growing earnings fast, we look for stocks that appear decently priced with respect to year-over-year growth.

For example, a company growing 15% annually with a price-to-earnings (P/E) ratio of 15 or less would be considered cheap by GARP standards. Since the “E” is growing at 15% per year, the P/E next year will either decline towards 13, or the stock price will rise in tandem with earnings.

It sounds like a foolproof investing formula.… Read more

5 Big Dividend Investing Mistakes (and How to Avoid Them)

Brett Owens, Chief Investment Strategist
Updated: March 14, 2016

Dividend stocks are a great way to build long-term wealth. But how do you pick the right ones—and steer clear of companies whose payouts are headed off a cliff?

You can start by avoiding the five classic blunders below. If you’ve made any of them, don’t worry. We all have. But keeping them in mind will help you stay off the rocks and boost your future returns.

  1. Focusing on High Yields—and Nothing Else

For many investors, buying dividend stocks is a simple matter of seeking out a high yield—above 6%, say—and hitting the buy button.

That’s the worst thing you can do, because many stocks paying out at those levels are nothing more than “yield traps”: their profits and cash flow simply can’t back up their hefty payouts.… Read more

4 High Yield REITs Paying Up To 11%

Brett Owens, Chief Investment Strategist
Updated: March 11, 2016

The S&P 500 may yield just 2.2% today – but if you smartly invest in stocks that specialize in profitable niches, you can collect 6-11% yields right now. With double-digit price upside to boot!

Real Estate Investment Trusts (REITs) are some of my favorite vehicles for specialization and yield. REITs must have 75% of their assets in actual real estate and earn 75% of their income from those assets. These dividend machines are legally required to pass along at least 90% of their earnings to shareholders.

This is actually the best time to buy REITs this decade. The Vanguard REIT Index ETF (VNQ) pays 3.9% today – just about its highest since 2009.… Read more

3 Healthcare Dividends With 200% Upside

Brett Owens, Chief Investment Strategist
Updated: March 24, 2016

Worried about President Trump? The Fed? China’s economy?

All of the above?

If so, here’s some simple advice – ignore it all, and invest only in “sure things.” You see, no matter what American voters, Janet Yellen, or Xi Jinping decide to do later this year, there’s one sure economic bet in the U.S…

The country will be a lot older in the future than it is right now – thanks to 10,000 Baby Boomers turning 65 every day. Remember how this generation drove the U.S. economy since their infancy in the 1950s?

  • Post-WWII makers of baby products recorded record profits thanks to their wares flying off the shelves.
Read more

These 2 Stocks Could Boost Their Dividends Twice In 2016

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

Looking for an easy way to boost your portfolio’s yield by 30% and watch your dividends rise more than once a year? I’ve got one for you. And it’ll help you pick up some valuable international exposure, to boot.

All you have to do is look north, to Canada, where there are plenty of top-flight dividend stocks on sale now, like the two I’ll name a little further on.

I know that when most US investors think of Canada, they think of oil and gas—not exactly the best place to be right now. (And these days, some of us may be looking to our northern neighbor as a refuge if Donald Trump wins the presidency.)… Read more

5 Overlooked REITs with Growing Dividends

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

Income investors, specifically those invested in stable Real Estate Investment Trusts (REITs), have been able to ignore most of the recent market mayhem. These issues have little exposure to energy prices, and China. Typically, they’re a pure U.S. economic play with stable income streams.

Plus, they’re pretty cheap right now. The Vanguard REIT Index Fund (VNQ) is paying its highest yield this decade (4.1%).

I’ve been a strong advocate of REITs since they became “too cheap” in mid-2015. After all, they’re legally required to pass along at least 90% of their earnings to shareholders. It’s a solid formula for market-beating dividend yields.… Read more

4 Dividend Stocks Superstar Investors Love – and You Should Too

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

One of my favorite ways to find new investment ideas is by keeping an eye on what the smartest players in the game are up to. That’s hardly a novel concept. After all, it’s always wise to study the greats – in investing or anything else.

But investors can do more than just watch the smart money; we can see every stock in their portfolios – and we can do it for free.

How? Through Form 13F, which every institutional investor in the U.S. with more than $100 million of assets must file with the Securities and Exchange Commission within 45 days of the end of every quarter.… Read more

11 More Dividends in Serious Danger

Brett Owens, Chief Investment Strategist
Updated: March 2, 2016

First, it was Kinder Morgan (KMI). Then, ConocoPhillips (COP). Which sacred dividend is going to get cut next?

Regular readers know that I believe big oil is a big avoid for now. But if you insist on speculating in the goo patch, stick with Exxon (XOM).

There are payout problems outside of energy, too. A quick look at Reality Shares’ DIVCON screen reveals seven 4% payers in “DIVCON 1” territory. This means they’re more likely to cut their dividend than raise it. Let’s discuss these, and a few more high yielding problem children.

1 Shaky Telecom

Frontier Communications Corp.Read more