Articles

Tech Investors: This 9.3% Payout Is Cheap (and Growing Fast)

Michael Foster, Investment Strategist
Updated: May 6, 2024

An unusual trend has hit Silicon Valley that’s running far below the radar: a big shift toward paying dividends.

We’re going to take full advantage by grabbing something unheard-of, even for die-hard tech investors: A 9.3% dividend that grows. 

That’s a real eye-opener for tech, to be sure. Because while more tech stocks are paying dividends these days—even long-time holdouts Meta Platforms (META) and Alphabet (GOOGL) now offer payouts—most of these are still tiny. (Meta and Alphabet both yield just 0.5%).

Of course, there are tech-dividend stalwarts that pay at least a bit more and offer long histories of payout growth, too, like Microsoft (MSFT) and Cisco Systems (CSCO), which yield 0.7% and 3.3%, respectively.… Read more

This Ticker Turns Nvidia Into a 9.2% Dividend Payer

Brett Owens, Chief Investment Strategist
Updated: May 3, 2024

Stock market rallies climb walls of worry. Well, we have no shortage of such worries today!

A few days ago, Bloomberg lamented there was “no relief in sight for bonds”. This was ironic because relief—the catalyst for the next big bond rally—is hidden in plain sight. Despite the despair, 10-year Treasury rates are still a ways off from their recent 5% highs last October:

Reality Check: Rates Still Lower Than Last Year

If they put in a “lower high”—as I’m expecting they will, thanks to a slowing economy and labor market—it will be wildly bullish for bonds (which trade inverse rates.)… Read more

What Every Investor Gets Wrong About AI (and Where the Real Profits Are)

Michael Foster, Investment Strategist
Updated: May 2, 2024

If you’ve been following the AI space lately (and honestly, who hasn’t?), you’ve probably seen stories about tech investors feeling a bit shortchanged on the profits they’re getting.

That’s actually good news for the rest of us—a sign the market is maturing and ripe to be tapped for income.

Specialists Often Miss the Bigger Picture

Experts make this mistake all the time. There are a few reasons for this, but probably the biggest is overreach: You can be a wizard at technology, you can even be a genius at investing in technology, but you can still be wrong if growth happens differently than you expect.… Read more

Ditch the Goofy Spreadsheet for This “Must Have” Dividend Tool

Brett Owens, Chief Investment Strategist
Updated: May 1, 2024

“If you own dividend-paying stocks, you’d be a fool to not be using Income Calendar,” my man Mark P. from California writes.

Tell ‘em, Mark!

We are devoted to retiring on dividends here at Contrarian Outlook. But a little bit of work in retirement is OK. As income investors, we should be able to, well, project our income.

Note that I said a little bit of work. Not a lot! I am not interested in fiddling with spreadsheets until the end of time, and neither is my man Mark.

That said, I’m springing a pop payout quiz on you.… Read more

Analysts Think This 170% Dividend Grower Is “Old News.” They’re Wrong.

Brett Owens, Chief Investment Strategist
Updated: April 30, 2024

One of the best ways to grab a dividend payer set to surge is a strategy you never hear about anymore: Pick up shares of a conglomerate.

I know, I know. The word brings to mind “old school” companies like 3M (MMM)—which we discussed a couple weeks ago—and Honeywell International (HON).

The deal on these companies is that they’re basically a collection of businesses that often have little overlap. They’re hated by Wall Street because they’re just too much work for the suits to value!

That’s great for us because these firms often have the most value waiting to be unlocked—especially if you buy as they tighten their focus on a specific industry.… Read more

These 3 Letters Could Cost You Up to $70,000 in Dividends

Michael Foster, Investment Strategist
Updated: April 29, 2024

Right now—today—we’re looking at a terrific buy window on 8%+ yielding closed-end funds (CEFs). Interest rates are maxed out (and let’s be honest, they’re headed lower—even if “go time” on cuts has been pushed back a bit).

That will drive up the appeal of CEFs, thanks to their outsized income streams.

So now is a great time to take a look at these (too) often overlooked income generators. Today we’re going to do just that. We’ll start by debunking a CEF myth called “return of capital,” or ROC, that has caused many investors to miss out on the sustainable high income streams these funds offer.… Read more

Can You Earn a $40,000+ “Salary” With Monthly Dividend Stocks?

Brett Owens, Chief Investment Strategist
Updated: April 26, 2024

Monthly dividend stocks baby. Most income investors don’t even realize they exist!

Out of the few thousand stocks that trade publicly, only a few dozen pay monthly dividends. These hidden gems tend to have market caps in the hundreds of millions rather than billions.

Their relative obscurity is perfect for us. We’ll take them over their blue-chip quarterly cousins.

Quarterly dividends are pay days we prefer not to wait for. Plus, the payouts typically disappoint.

Let’s consider the distributions from a $500,000 portfolio split evenly among a group of five mega-cap dividend payers. These are uber-popular, widely held blue chips that you’ll see near the top of most major large-cap funds.… Read more

Forget Treasuries: These 7%+ Dividends Are Much Safer

Michael Foster, Investment Strategist
Updated: April 25, 2024

Don’t believe anyone who tells you there’s such a thing as a safe investment. Truth is, every asset—from Treasuries to houses to dividend stocks—involves risk.

The “safest” investment, according to the Financial Industry Regulatory Authority (FINRA), is a short-term US Treasury bill. You lend the government $100, say, and you’ll get $105.17 back in a year. Not bad.

But there are some caveats:

  1. Short-term Treasury rates fluctuate, and the Federal Reserve has said they’ll try to get them lower later this year.
  2. In a truly apocalyptic disaster, you might find that the Federal Reserve doesn’t pay your money back. In fact, you might find that money itself is worthless.
Read more

Perfect Pullback Play with a Safe 8.4% Payout

Brett Owens, Chief Investment Strategist
Updated: April 24, 2024

Some are fast. Some are slow.
Some are high. Some are low.
None of them is like another.
Don’t ask us why, go ask your mother.

Dr. Seuss

Here at Contrarian Outlook, we prefer slow—as in slow-moving share prices. And high—as in high yields.

As to why, well, I need to address why other (less sophisticated) investing websites have bad information regarding a very good fund. So bad, in fact, that vanilla investors are scared to buy this perfectly safe 8.4% dividend!

Before I send you to ask your mother, I’ll explain why our website is right and other websites are wrong.… Read more

This 10.4% Dividend Ticks Our 2 “Must-Have” Boxes

Brett Owens, Chief Investment Strategist
Updated: April 23, 2024

As folks who are always on the hunt for high-yield investments, we love 8%+ paying closed-end funds (CEFs).

CEFs, of course, are renowned for those high payouts—and the vast majority pay monthly. No “regular” stocks offer such a potent payout combo.

Best part is, many CEFs are on sale now: Of the 422 tracked by the CEF Connect screener, 372 currently trade at discounts to net asset value (NAV, or the value of their underlying assets).

That’s a great place to start our search for top-notch CEFs because a discount to NAV is basically free money: it lets us pick up, say, red-hot tech stocks like Texas Instruments (TXN), Amazon.comRead more