Articles

47 Ways to Squeeze Out Larger Dividends Each Year

Brett Owens, Chief Investment Strategist
Updated: July 1, 2022

Some of the greatest dividend growers on the planet are cheaper than they’ve been in many years. Plus, these blue-chip yield machines finally pay.

The problem with bull markets is that they whittle yields down to nothing. Enter the bear, a dividend growth investor’s best friend. These fantastic stocks are finally in the bargain bin.

Today we’re going to do more than highlight one or two. We’re going to fawn over 47 companies about to raise their dividends.

These stocks are set to grow for years to come thanks to their “dividend magnets.” This is a tactic used to identify a three-pronged way to win with stocks:

  1. Growing payouts = growing yields over time.
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Don’t Listen to the Pundits. Now Is a Great Time to Retire (With 9%+ Dividends)

Michael Foster, Investment Strategist
Updated: June 30, 2022

I don’t know if you’ve noticed, but there’s been a flurry of doom-and-gloom articles making the rounds that all preach the same thing: anyone looking to retire now faces a bleak time of it indeed.

To that I say: nonsense! Below I’ll show you three closed-end funds (CEFs) whose yields are so high right now (up to 11.2%) that buying them and living off their rich payouts has rarely been this attractive.

We’ll talk more about these three funds, and the many benefits CEFs offer retirees, shortly. First, let’s talk about the “retirement alarmism” we’re seeing in the media today. Because these articles (all driven by the fact that fearsome headlines get clicks) suggest that a mix of high inflation and still-high stock valuations will result in retirees facing much lower “safe withdrawal rates,” or SWRs.… Read more

Listen to Bob Barker, Not Jay Powell, On Inflation

Brett Owens, Chief Investment Strategist
Updated: June 29, 2022

Just when I thought 2022 couldn’t get any stranger, my inflation research led me to a bold but inescapable conclusion. We’re living a financial prophecy foretold by the gameshow The Price is Right.

Cliff Hangers, to be specific, teaches the 2022 monetary scene perfectly.

The contest features a climber moving from left to right along an upward-sloping mountain, with a scale of 0 to 25. The contestant bids on a few household items, and the climber moves by the number of dollars the guess misses by.

A perfect bid and the climber will stay put. Off by $10, and the climber will move up 10.… Read more

How My “Dividend Magnet” Strategy Helps You Dodge Payout Cuts

Brett Owens, Chief Investment Strategist
Updated: June 28, 2022

Most investors ignore the “magnetic” connection between dividends and share prices. It’s causing them to miss out on huge gains—and setting them up for big losses, too.

Here’s what I mean: in my earlier article in our ongoing series on my “Dividend Magnet” approach to investing, I gave you example after example of how a rising dividend almost inevitably drags a company’s share price up with it.

This is one of the main reasons why we demand a dividend that’s not only growing but accelerating in my Hidden Yields dividend-growth service.

It’s clear as a bell in the chart of Texas Instruments (TXN), below, one of the examples we discussed in our previous article.… Read more

These 11.1%-Yielding CEFs Could Bankroll Your Retirement

Michael Foster, Investment Strategist
Updated: June 27, 2022

Thanks to the selloff, it’s possible to buy closed-end funds (CEFs) at such high yields that we can do what seemed unthinkable just a few months ago: build a CEF portfolio that will pay $5,000 a month in dividends on about $540k invested.

That’s an 11.1% average yield!

This, of course, is because many CEFs have been caught up in the selloff, and yields move inversely to prices. So a fund that may have yielded, say, 7% six months ago (which is about the long-term CEF average) is suddenly yielding a lot more now.

In addition, it’s possible to build an income stream this big with just three CEFs.Read more

A Nearly 13% Portfolio Yield, Paid Monthly? Come On.

Brett Owens, Chief Investment Strategist
Updated: June 24, 2022

Patience is the key to being a successful contrarian investor.

We buy when fear is widespread. Bear markets are our friends. Let’s sit back and let the market’s valuations come down to us.

I wrote very recently that the market is this close to sending out a market-wide buy signal. Let’s get ready to back up the truck.

Today, we’ll discuss targets for retirement income yielding a ludicrous 12.9%—after all, a self-sustaining portfolio that allows you to live off dividends alone can give you enormous peace of mind once you’re past your working years.

And if those dividends land in your mailbox or account every 30 days or so, matching your monthly bills…well, that’s even better.… Read more

This 7.9% Yielder Is Built to Thrive (Whether the Selloff Is Over or Not)

Michael Foster, Investment Strategist
Updated: June 23, 2022

While the pundits continue to (unsuccessfully) try to call the bottom of this Fed-spooked market, we CEF investors are doing what we always do: collecting our 7%+ dividends as we patiently move through to brighter days.

In fact, we’re doing more than that: we’re making some careful long-term buys as our fellow CEF investors—a conservative lot if there ever was one—toss out funds that are actually well suited to the higher-rate world we’re moving into.

I want to talk about one such fund today: it does something that has a lot of appeal in a market like this—it keeps you invested in the S&P 500, but with a twist: it hands you an outsized income stream that actually grows more stable as volatility picks up.… Read more

Did the Stock Market Bottom Last Week?

Brett Owens, Chief Investment Strategist
Updated: June 22, 2022

Have we seen the lows yet?

Well, we’re oversold and due for a rally. Overdue, really. (Stop me if you’ve heard this before…)

Assuming we get a bounce, I’m still inclined to sell any rips higher that we see.

Someday we’ll buy this dip. Heck, we’ll back up our dividend truck. I just don’t think it’s time yet.

First, I’d like to see market breadth begin to improve under the surface. This is often what typically happens before markets bottom. We see individual stocks begin to “act better” than the Dow or S&P. These leaders quietly establish their lows and begin to rally.… Read more

Here’s Our Trading Plan to Survive the Storm, Grab 7%+ Dividends

Brett Owens, Chief Investment Strategist
Updated: June 21, 2022

Look, I’m as ready for this selloff to end as you are. And when stocks drop—sending dividend yields skyward—I so badly want to back up the truck.

As value-focused dividend investors, buying dips is what we live to do. Sitting in cash is agonizing to me, as I’m sure it is to you, too.

But it just isn’t time yet. Which is why I’ve recommended just one stock this year in my Contrarian Income Report service, while urging my readers to stockpile cash. And after last Thursday’s dumpster fire, we’re sure glad we did!

We’ve also lightened up our portfolio over these last few months, including taking some nice profits on three bank stocks we sold in May:

There was nothing wrong with these three: they were just benefiting from the Fed’s injection of cash into the markets, and the gap between the 10-year Treasury (at which they lend to clients) and the Fed’s policy rate (at which they lend to each other).… Read more

This “Low-Drama” Portfolio Is Built for This Crash (and Yields 11.8%)

Michael Foster, Investment Strategist
Updated: June 20, 2022

Look, I know this inflation-panicked market is frustrating. But despite the endless doomsaying from the pundits, there is good news: if you’re investing for income and have a long time horizon, there are some big dividends (I’m talking 10%+ yields) waiting for us in closed-end funds (CEFs).

In a second, we’re going to dive into three such funds I’ve assembled into a low-drama “mini-portfolio” yielding north of 10%.

We can thank the selloff for this opportunity: when stock (and CEF) prices go down, yields go up. And our CEFs discounts to net asset value (NAV, or the per-share value of a CEF’s portfolio) fall to bargain levels.… Read more