Stock Market Crash 2022 Update: It’s Hammer Time

Brett Owens, Chief Investment Strategist
Updated: July 6, 2022

You’ll probably get hyped, boy, ‘cause you know you can’t 
You can’t touch this
Ring the bell, school’s back in
Break it down!
Stop, Hammer time!

Rapper and dancer Stanley Kirk Burrell—better known as MC Hammer—penned this poetic verse in his 1990 hit “U Can’t Touch This.” (Rick James shares songwriting credits, by the way, because Hammer borrowed James’ opening riff from “Super Freak.” Thanks to Wikipedia for clarifying something I’d always wondered about but never took the time to look up.)

Been awhile since you thought about Hammer? Maybe it’s time to start tuning your dial over to the 90s on 9 and Downtown Julie Brown next time you make a trade.… Read more

Confession of a Die-Hard Dividend Fan: “Dividend Yields Mean Nothing”

Brett Owens, Chief Investment Strategist
Updated: July 5, 2022

A stock’s current yield holds an almost untouchable place in most investors’ minds. But here’s the thing: it’s lying to you.

My take: you’re much better off going by a company’s shareholder yield, which tells the full story on the payout we get.

Shareholder what?

We’ll get into exactly what shareholder yield means for us in a second. But we first need to look at how going by a stock’s current yield alone can steer you into a ditch.

Lumen Technologies Shows How a High Yield Can Be a Trap …

Consider regional telecom operator Lumen Technologies (LUMN), which we discussed last week in our third article on my proven “Dividend Magnet” investing strategy.… Read more

Play This “Quiet Shift” in Housing for 7% Dividends and Upside

Michael Foster, Investment Strategist
Updated: July 4, 2022

Demand for rental property is literally going through the roof—and we can play the trend for a rock-solid 7% dividend that can be had at a discount!

What’s driving this opportunity? Higher interest rates. As you can see below, the average 30-year mortgage issued today bears an interest rate near 5%, a level we haven’t come close to since the subprime-mortgage crisis.

Mortgage Rates Soar

The trend is so aggressive that it’s getting analysts and journalists into full-blown panic mode, as they begin to report on what I call “seller’s remorse.”

Seeing how rates are soaring and home values are hitting a bump, sellers are already reducing their asking prices and looking to offload property as fast as possible.… Read more

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.
Read more

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