Big Yields, Little Stocks: 5 Small-Caps Paying up to 14.7%

Brett Owens, Chief Investment Strategist
Updated: November 3, 2023

Small dividend stocks are dirt cheap right now. I’m talking about stocks trading for less than one year’s worth of sales. Yields up to 14.7%. And single-digit P/E ratios.

Why such deals? Well, because they’ve been pummeled into bargain territory of late. A number of high-yield bargains are staring us right in the face.

Small firms, straight up, are the cheapest stocks on the planet right now:

Value is great but show us the money! We’ll do so with five small-caps averaging a stellar 12% in yield among them. Are these deals or are these equities cheap for a reason?… Read more

A 16.2% “Forever” Dividend? It’s Here (and It’s Cheap)

Michael Foster, Investment Strategist
Updated: November 2, 2023

Imagine a fund yielding 16.2% that’s likely to keep that high payout steady for years and years. I know it sounds unthinkable, yet we have just such a fund sitting in front of us today—ripe for buying at a discount, no less.

That would be the PIMCO Dynamic Income Fund (PDI), a bond fund throwing off that 16.2% payout, as of this writing. PDI uses a variety of credit investments to produce that outsized income stream. Thanks to high interest rates that look set to stay high for some time, and thanks to a sudden drop in the fund’s valuation, that income stream is sustainable.… Read more

This 11.1% Dividend is a Sucker’s Bet

Brett Owens, Chief Investment Strategist
Updated: November 1, 2023

Closed-end funds (CEFs) are ready to climb after a two-month decline. In preparation for this pop, select vanilla investors are buying this 11.1% dividend with its 14% downside.

Wait, what?!

Everyone hates bonds today. Yet, somehow, these bonds are selling for $1.14 on the dollar.

I sure wouldn’t do it. I’d favor the fixed income that everyone hates. (More on these discounted dividends in a moment.)

Who is this “I’ll pay a premium” belle of the basic income ball? Convertible bonds. Convertibles pay regular interest. In this way, they act like bonds. You buy them and “lock in” regular coupon payments.… Read more

1 Megatrend That Will Power Our Dividends for Decades (2 Tickers Below)

Brett Owens, Chief Investment Strategist
Updated: October 31, 2023

Look, this deglobalization trend is hitting high gear—and if you miss your chance to tap it for surging dividend payouts, you will regret it down the road.

After all, it’s megatrends like this one that we contrarian income-seekers live for. Let the “basic” investors sweat headline-driven fears like rising rates and recessions. We’ll happily lock in our “megatrend” dividends and ride along for years, and even decades, as our payouts soar triple-digits!

Really, terms like “deglobalization,” “onshoring” and “friendshoring” are just fancy ways of talking about the flow of manufacturing jobs back to the US, or to US neighbors like Canada and Mexico, from basket cases like Xi’s China.… Read more

Ignore This Stupid Investing Rule (Look to These 3 Reliable Dividends Instead)

Michael Foster, Investment Strategist
Updated: October 30, 2023

I hate to see investors get snared by so-called “rules of thumb” like the 4% rule (which we’ve debunked here on Contrarian Outlook many times before).

The trouble is, these rules only “work” until they don’t. And blindly following them through an unexpected market turn could lead you to investment losses, or to run out of money in retirement.

Heck, some don’t even have a germ of truth to them, like the “100 minus your age” rule, which says you should subtract your age from 100, and that’s how much of your portfolio you should dedicate to stocks. So if you’re 30 years old, 70% should go into stocks and 30% into bonds.… Read more

How to Squeeze Yields up to 12% … From Tech Stocks

Brett Owens, Chief Investment Strategist
Updated: October 27, 2023

This entire market meltdown has been based off of a flawed premise. We income investors must take advantage of it, before sanity returns to the markets.

The 10-year Treasury yield soared above 5%. On its journey to the stars the higher 10-year has clipped equities severely along the way. A high benchmark rate upsets every applecart in finance.

But here’s the thing. This is not a sustainable move.

Inflation isn’t really in a spiral higher. In fact, it’s the opposite. Core PCE (personal consumer expenditures)—the Federal Reserve’s preferred measure of inflation—is dropping like a rock:

Fed’s Preferred Inflation Measure is Dropping Fast

Note, this excludes food and energy prices.… Read more

4 Keys to Steady 11%+ Dividends in CEFs

Michael Foster, Investment Strategist
Updated: October 26, 2023

It was the best of times, it was the worst of times. No, I’m not talking about Dickensian London—I’m talking about the mood among investors in our favorite high-yield investments, closed-end funds (CEFs), these days.

Those of us who know what to look for in CEFs are finding a rich hunting ground of big dividends. Yields are up—our CEF Insider portfolio yields an average of 10.2% today—and we’re in a good position to book longer-term profits due to the big discounts still available. (We can thank the cautious folks who invest in CEFs for that—they’ve been slower to buy back in after the 2022 pullback, due to alarmist media headlines.)… Read more

11 Simple Rules for Terrific 12% Dividends via Safe CEFs

Brett Owens, Chief Investment Strategist
Updated: October 25, 2023

If you don’t like these 10% and 12% dividends, well, you’re not really an income investor.

That’s right. As I write, select closed-end funds (CEFs) yield 12.8%.

Twelve. Point. Eight. Per. Cent!

Vanilla “investors” are panicking. Sentiment has hit washout levels. A short-term bottom is near, or perhaps already in.

We contrarians are staying calm and locking in the 10% and 12% yields. When the market seas become choppy, we stick to our script. Here it is, broken down in a 11-step playbook for these 10.1% to 12.8% yields.

CEF Rule #1: Buy the Best 

Fixed-income behemoth DoubleLine runs some well-known big funds as well as smaller, lesser-known CEFs.… Read more

Remember the 2020 Refi Wave? These Wild Dividend Deals Are Even Better

Brett Owens, Chief Investment Strategist
Updated: October 24, 2023

Do not miss these huge dividend yields we’re seeing today. In a year or two, you’re going to kick yourself for not locking these income streams in.

Take it from me. This bond guy nearly missed the great home refi opportunity of 2020-21. Fortunately, I managed to wake up and lock in a 2%+ mortgage before rates skyrocketed. Today, 30-year mortgage rates sit at 8%. Eight percent!

I mention that only because we have a similar setup in dividends today. In a moment, we’re going to discuss an elite dividend paying 8.5%. Let’s not miss it!

From Mortgage Refis to “Dividend Refis”

Here’s the upshot: the same trend that delivered that sweet refi opportunity three years ago is driving our dividend opportunity today—just in reverse.… Read more

Do This for $4,000+ in Dividend Income Every Month

Michael Foster, Investment Strategist
Updated: October 23, 2023

The hardest part of convincing folks they can lock in high dividends for the long haul (I’m talking 9%+ yields here) is that many just don’t believe it.

And frankly, I can’t blame them. Too many people are paid a lot of money to tell investors that yields like that are impossible. But the truth is you can get a 9.5% yield today—and even more. But even at 9.5%, we’re talking about a middle-class income of $4,000 per month on an investment of just a touch over $500K.

Source: CEF Insider

Below, I’ll reveal how to start building a portfolio that could get you an even bigger income stream than this today.… Read more