Articles

5 Ways to Invest in Oil (Ranked From Worst to First)

Michael Foster, Investment Strategist
Updated: July 25, 2022

When oil spikes, like it has in recent months, many folks get tempted, wondering if there’s a way to time their way into—and out of—crude for maximum profits and dividends.

Unfortunately, timing markets is tough—especially the oil market, which is global and highly complex. Heck, the experts have trouble doing it! Consider this chart:

Bloomberg analysts looked at how the price of energy commodities trended over the last 20 years and how an index of energy-related investments performed over the same period. They found that professional investors whose job is to turn changes in commodity prices into cash profits had a hard time doing so.… Read more

This Megabank Is a Megabuy After Earnings

Jeff Reeves, Senior Investment Analyst
Updated: July 22, 2022

Last week, I shared with you one of my top picks right now in pharmaceutical giant AbbVie (ABBV). The stock has tripled its dividend in about 10 years and is one of the rare investments that’s actually up in an admittedly rocky 2022.

And the week before that, I detailed another “MVP” stock in Stellantis (STLA). This automaker is plotting big cost-savings after a recent merger, currently delivering more than 5X the yield of the typical stock in the S&P 500.

This time around I want to share with you another recommendation, megabank JPMorgan Chase (JPM). This financial stock also exhibits the three must-have factors I look for – strong management, attractive value and generous payouts – but has recently been making headlines after earnings that make this trade a bit time-sensitive.… Read more

This “Trick” Lets Us Play the VIX for Strong 7.5% Payouts

Michael Foster, Investment Strategist
Updated: July 21, 2022

Today we’re going to look at how we can play the market’s “fear gauge”—known as the VIX, for a 7.5% dividend that’s as steady as they come.

As you can guess, the VIX has been on the rise this year as the Fed-induced market selloff has deepened:

Fear Gauge Rises. A Plus for Our Dividends?

You can’t outright buy the VIX, and even if you could, you wouldn’t get any dividends from it. But there is an asset class that uses the higher volatility the VIX is showing us to generate extra cash, resulting in a higher (and safer) income stream for you: closed-end funds (CEFs) that sell covered-call options.… Read more

677% Dividend Growth (and More to Come)

Brett Owens, Chief Investment Strategist
Updated: July 20, 2022

Welcome back to Contrarian Outlook, the only dividend research service focused on 6% weekly returns.

What a formula! Wash any 2022 losses away with this swift “6% every seven days” solution.

I kid, of course. This rate of return, while not sustainable, sure is nice when it happens. Especially in a dumpster fire market like this one.

So thank you, UnitedHealth Group (UNH)! In these pages last week, we called out UNH as a recession-resistant stock because the health carrier is always growing EPS at a 10% annualized rate.

Thanks to these profit gains, UNH’s dividend has been doubling every few years.… Read more

If You See a Dividend Stock That Does This, It’s Time to Buy

Brett Owens, Chief Investment Strategist
Updated: July 19, 2022

Buying into companies that split their stocks tilts the odds sharply in your favor—and buying a “splitter” that grows its payout will help you do even better.

Today we’re going to look at how you can “front run” the next dividend split for fast share-price (and dividend!) growth.

“But wait,” you’re probably thinking. “Aren’t share splits meaningless when it comes to the stock’s overall value?”

True! Let’s look at the case of Amazon.com (AMZN), which performed a share split last month. After the close of trading on Friday, June 3, the company divided each of its shares (which closed at $2,447 that day) into 20 pieces, so the stock opened at $124.79 on Monday, June 6.… Read more

Beat the Recession AND Inflation With This “3-D” Portfolio (Yields 8%)

Michael Foster, Investment Strategist
Updated: July 18, 2022

When it comes to high-yield closed-end funds (CEFs), I’m a big fan of the “three Ds”: discounts, diversification and—of course—dividends!

These days, a “3-D” portfolio is a snap to put together, with CEF dividends at multi-year highs and oversold discounts everywhere across the asset class.

Below, we’ll look at a three-fund, bargain-priced “3-D” CEF portfolio you can buy today. It yields 8% now and gives you the diversification you need to reduce your volatility—and collect your payouts in peace.

I know that preaching diversification at a time when bonds, stocks and everything else is down might sound a bit outdated, but over time, this time-tested strategy always pays off.… Read more

Dividends So Large, You’ll Think They’re ZIP Codes

Brett Owens, Chief Investment Strategist
Updated: July 16, 2022

Well, it took seven months. We finally have some serious dividends!

Today we’re going to highlight 53 of them that yield at least 14%. That is not a typo—these 53 dividend stocks actually pay between 14.1% and 44.6%.

Are they all buys? Of course not. But why not take our calculated contrarian chances with real income stocks, rather than wasting our time with mainstream ideas?

While we are considering payout plays like these, vanilla income investors are stuck with:

  • The S&P 500 yielded 1.3% to start the year. Now? About 1.7%.
  • REITs, which are better but still only yield 3.1% as a group.
Read more

This Recession-Resistant Healthcare Play Has Tripled Its Dividend

Jeff Reeves, Senior Investment Analyst
Updated: July 15, 2022

Last week, I shared one of my top picks in this volatile market via automaker Stellantis (STLA). You can get all the details in my analysis, but the short version is that this stock is set up for big cost-savings after a recent merger, trades at P/E ratio of just 3X earnings, and delivers more than 5X the yield of the typical stock in the S&P 500 index at present.

This week, I want to share a bit more about the “MVP” philosophy behind this pick by highlighting another stock that is equally attractive.

MVP stands for three core factors that any income-oriented investor should explore before making an investment — Management, Valuation and Payouts.… Read more

This Fund Beats Inflation and Recession (and Yields 11%, Too)

Michael Foster, Investment Strategist
Updated: July 14, 2022

If you’re like me, you’re getting sick of this tug-of-war between inflation and recession worries. One steals our purchasing power, while the other knocks down our portfolio values!

But I’ve got good news for you—two pieces of good news, actually.

  1. Our closed-end funds (CEFs) continue to deliver high, and reliable, income. The portfolio of my CEF Insider service boasts many funds yielding north of 8%, and the vast majority pay dividends monthly. Those high yields help us hedge against inflation, and the extra dividend cash (should we let it build up in our portfolios) naturally reduces our volatility.
  2. Recession fears are overblown, according to the latest data (which we’ll get to in a bit).
Read more

The Fastest (and Safest!) Way to Recoup ’22 Stock Losses

Brett Owens, Chief Investment Strategist
Updated: July 13, 2022

Some losses are just so bad it is dead money…

Look, I know several of you got into some sketchy stocks over the past couple of years. I’m not naming names but c’mon, as a dad of two young ones, I can tell when something is amiss.

Our safe dividend stocks have held up better than, well, just about anything else in this market. We’ve been cautious since late ’21, booking profits along the way. As the market topped, we sold early and often to raise cash.

So if you’re writing to me about dead money, let’s face it, you got into something bad.… Read more