Articles

These 7.5% Yields Will Survive a 2008 Repeat

Brett Owens, Chief Investment Strategist
Updated: May 22, 2019

“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 only the safest yields,” they continue.

Fortunately I’m no stranger to dividends that thrive in bear markets. We fittingly launched the Contrarian Income Report months before the market’s tantrum in 2016. The S&P 500 promptly dropped 10% as a welcome present!

It was no problem for our strong dividends, however. In fact, subscribers who focused on their own holdings rather than the financial news likely have missed the broader carnage altogether.… Read more

These “Pullback-Proof” Dividends Soared 64% (They’re Just Getting Started)

Brett Owens, Chief Investment Strategist
Updated: May 21, 2019

Let’s ride this “tariff tiff” to a cash stream that’s double (and maybe even triple) the 2% and 3% payouts your friends are likely “grinding it out” with today.

I’m talking about a stout 5% yield here. And that’s just the start, because that payout has surged 64% in the last 10 years, and is set to repeat that feat in the next 10.

While we’re at it, we’ll “2008-proof” your portfolio, too, carefully cushioning your nest egg from the next market collapse.

And we’ll do all of this with the three unusual “pullback-proof” stocks I’ll show you shortly. Each is set to hold its own in the next crash, then soar when the dust settles.… Read more

3 “Tariff-Proof” CEFs You Can Buy Now (7% dividends and upside)

Michael Foster, Investment Strategist
Updated: May 20, 2019

You’re no doubt wondering if there’s anywhere you can invest and still get a decent return—without wincing every time you open your brokerage account.

Good news: there is just such a place. And today I’m going to show it to you—along with three specific “crash-resistant” funds yielding up to 7.1%.

The magical place I’m talking about is an often-ignored corner of the market called closed-end funds (CEFs).

Steady Dividends for Rocky Markets

There’s a weird twist that lets CEFs pay us dividends of 7.1% (and a lot higher) without exposing us to the risk of a surprise payout cut.

It comes down to the fact that several CEFs’ prices (on the open market) trade at a discount to the per-share net asset value (or the liquidation value of their portfolios).… Read more

Weekly Market Summary: Stocks Attempt Recovery as Volatility Persists

David Peltier, Senior Investment Analyst
Updated: May 18, 2019

The ongoing trade dispute with China frightened U.S. investors again on Monday, sending the Dow Jones Industrial Average down 617 points. However, markets were able to claw back those losses over the next three trading sessions.

While no resolution has been made between the two superpowers, the war of words has since quieted down. In addition, investors cheered solid earnings reports from blue-chips, like Cisco Systems (CSCO) and Wal-Mart (WMT).

Calculating the Tariff Cost

Still, President Trump has vowed to consider tariffs on another $300 billion of Chinese goods next month, if the two countries don’t agree to a truce by the G20 Summit in Japan.… Read more

4 Tariff-Proof Dividend Stocks Poised to Double

Brett Owens, Chief Investment Strategist
Updated: May 17, 2019

Is it time to tariff-proof our dividends (again)?

A couple months into the U.S.-China trade tensions, I said the key was to buy dividend-growth stocks: “Payout growth like that is proven to throw an updraft under share prices when the markets get skittish due to any kind of worry: trade spats, terrorist attacks, wars—you name it.”

Then I highlighted a trio of dividend growers–Life Storage (LSI), Ecolab (ECL) and Carnival Corp. (CCL)–that looked primed to swim upstream. Unpredictable fuel costs helped weigh on our Carnival pick, but even then, the combined total return of all three selections nearly doubled the S&P 500’s return.… Read more

Alert: This Life-Changing 7% Dividend Is Vanishing Fast

Michael Foster, Investment Strategist
Updated: May 16, 2019

If you’re like, well, everybody, you’ve been mulling these three questions lately:

Is this “tariff tantrum” the end of the bull market? Is it time to sell? Or buy more?

I’ll deal with the first question in a second. Meantime, let’s start with the second one: no, it is not time to sell. Because after all, we need to stay invested to keep our dividend checks rolling in.

What about buying?

Yes, it’s still a great time to buy—especially in one corner of the market where 6%+ dividends are everywhere: closed-end funds (CEFs).

In a moment, I’ll reveal a CEF whose yield recently soared to nearly 7%!… Read more

How to Retire on 7.2% “Tariff-Proof” Dividends

Brett Owens, Chief Investment Strategist
Updated: May 15, 2019

Is it time to tariff-proof our dividends (again)?

Let’s look at our favorite payers with respect to a potential trade war. Could tariffs derail the 7.2% gravy train I’ve put together for you? Let’s rewind to the last time protectionism flared in America, 17 years ago, to see how some of our stocks and funds performed during the last trade tiff.

On March 20, 2002, President George W. Bush whacked steel imports with tariffs ranging from 8% to 20%. The duties stayed in effect until December 4, 2003. The European Union was unamused and hit back with tariffs of its own.… Read more

Yes, You Can Retire on $490K (or less). Here’s How.

Brett Owens, Chief Investment Strategist
Updated: May 14, 2019

Is your nest egg way smaller than a million bucks? Do you worry you’ll never be able to retire?

I know: who doesn’t have this fear, right? Especially in today’s twitchy market.

Good news: you absolutely can leave the grind behind. And probably sooner than you think.

You can do it on far less than a million, too—just $490K (and maybe less than that, depending on your circumstances). The best part: you won’t have to sell a single stock in retirement.

Choose Your Own (Retirement) Adventure

Today I’m going to show you two routes to our $490K retirement: if you’re near (or already in) your golden years, you’ll want option 1: a collection of steady dividend payers yielding 7% and up.… Read more

3 Big Dividends (up to 6.9%) That Thrive in any Market

Michael Foster, Investment Strategist
Updated: May 13, 2019

If this wobbly market has you parked on the sidelines, worrying the big 2019 rally might evaporate at any second, I have good news: this is still a great time to buy.

But you need to buy carefully if we want to maximize our upside (and protect ourselves from a 2008-style meltdown).

The solution?

Top-quality closed-end funds (CEFs) handing you dividend cash that more than doubles (and in many cases more than triples) what your typical S&P 500 stock pays. I’ll give you three solid CEF picks (selling at fire-sale prices up to 23% off) at the end of this article.… Read more

Weekly Market Summary: Trade Dispute Sparks Return of Volatility

David Peltier, Senior Investment Analyst
Updated: May 11, 2019

Needless to say, this week got off to a bad start for Bulls, before Monday morning even rolled around.

Selling pressure started over the weekend, when most investors probably weren’t even thinking about stocks. President Trump fired off a tweet on Sunday, suggesting the U.S. would raise tariffs on $200 billion Chinese goods from 10% to 25% on Friday and consider taxing another $325 billion of items.

A war of words ensued on both sides and the news kicked off a roller coaster ride in the global markets. The U.S. followed through with its threats on Friday and the Chinese have promised retaliatory trade actions.… Read more