8% Dividends Today, 20.3% Dividends Tomorrow. Here’s How.

Brett Owens, Chief Investment Strategist
Updated: October 29, 2019

Forget today’s pathetic Treasury rates. And forget the lousy payout on your typical S&P 500 name, too.

Put your nest egg in either and you’re locking in an income stream that’s actually less than zero for years to come!

I know that sounds crazy—I’ll get into precisely what I mean, and how it could jeopardize your golden years—shortly. Then I’ll show you my two-step dividend strategy (and four specific stocks and funds you can buy now).

Put all four of these picks together and you’ve got a perfect setup for these days of miserly yields, giving you gaudy 6.1%+ payouts today and an incredible 20%+ cash stream in short order!… Read more

A Secret Way to Buy Apple (with a 9.2% dividend)

Michael Foster, Investment Strategist
Updated: October 28, 2019

I run across “buy and hope” investors all the time. You know the type: they latch on to a big-name stock, like Visa (V) or Berkshire Hathaway (BRK) and “hope” for big price gains.

Truth is, that’s their only option. With most big-cap stocks paying less than 2%, they’re sure not getting much in dividends!

Sad thing is, most people think this is the only way to invest. But there’s a better, safer approach. That’s what I’ll show you today.

It’s a simple investment that lets you buy the big-cap stocks you know well, but with two key differences: you’ll get a 9.2% dividend, so you’re getting much of your return in steady cash payouts …

… and you’ll be able to buy them for less than folks who pick them up individually, or through an index fund.… Read more

A 64-Year Dividend Increase Streak: Buy, Hold or Sell?

Brett Owens, Chief Investment Strategist
Updated: October 25, 2019

Dividend yields are so low today that dividend growth is actually becoming cool. Income investors are combing over “Dividend Aristocrats”–stocks that have raised their payouts for 25 straight years–in desperation to find any meaningful yield.

Problem is, these stocks are so popular and richly valued that they don’t pay much today. Nor will they yield much more tomorrow, even with yearly raises. Our princely picks pay less than 2% today, which is going to net you less than $20,000 on a million bucks.

Dividend Aristocrat Yields Head Towards Zero

The Dividend Aristocrats are the well-worn, oft-recommended dividend growers of the S&P 500.… Read more

Is This Another 2008? Here’s the Surprising Answer

Michael Foster, Investment Strategist
Updated: October 24, 2019

It’s a statement we hear from readers a lot: “I’m worried about another 2008.”

I get it. After all, we’re all 11 years older and have that much less time to recover from a crash. So today we’re going to cut through the noise and look at whether there really is something to worry about here.

We’ll do it by comparing, point for point, what’s happening now to the run-up to the 2008 crash. I think you’ll be surprised by the results.

Let’s dive in.

This Happened in 2006—and Again Last March

We started hearing about the inverted yield curve—when yields on short-term Treasuries move higher than those on longer-term ones—seven months ago.… Read more

OHI is Back: This 6% Payer is Raising Its Dividend Again

Brett Owens, Chief Investment Strategist
Updated: October 23, 2019

Our healthcare landlord Omega Healthcare Investors (OHI) is officially back. This 6% dividend has upside once again. We are about to receive our first payout raise since early 2018, which ends our seven-quarter drought in which the big dividend was paid but not raised.

I say “drought” partially in jest because OHI yielded a fat 10% when it froze its payout. The stock slipped on the news, but we discussed that a freeze isn’t the same as a cut, and OHI’s payout was well covered by its funds from operations (FFO).

Congratulations to you calculated contrarians who stuck with the pick.… Read more

How I Plan to Grow My Money 2X (with 50% more dividends)

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

I know you’ve got cash lying around you’d love to double. Heck, even the most buttoned-down investor wouldn’t turn down a quick 2X gain.

So let’s go ahead and double your stake—and do it safely, too.

Before you ask, no, this isn’t some wild pot-stock speculation: my 2X money plan only works on companies paying—and growing—their dividends. Like the stock I’ll show you shortly, which ballooned its payout 50% in less than three years.

The 2X growth plan we’ll dive into shortly hinges on three strategies I rarely reveal in public (but they won’t come as a surprise to my Contrarian Income Report and Hidden Yields members).… Read more

The 8.6% Dividend Your Advisor Hides From You

Michael Foster, Investment Strategist
Updated: October 21, 2019

When I show people how closed-end funds (CEFs) can hand them safe 7% yields and let them retire on much less than a million bucks, they often say one thing:

“Why the heck hasn’t my financial advisor told me any of this?” 

The reasons are both simple and surprising: 1) Many financial advisors don’t fully understand how CEFs work, and 2) Some CEFs involve a bit of research, so for a lot of advisors it’s easier to recommend low-cost index funds and call it a day.

Both of these (unacceptable) reasons are costing folks millions in profits!

So today we’re going to demystify CEFs by zeroing in on a fund that’s crushed the market for nearly two decades.… Read more

Small Biz, Massive Cash: BDCs Yielding Up to 11.8%

Brett Owens, Chief Investment Strategist
Updated: October 18, 2019

Income investors have been crushed this year. Bond yields are down and stocks pay less and less “dividend per dollar” with each rally. But there’s still one little-known corner of the investing world we can look to for safe yields up to 11.8%.

Business development companies (BDC) provide debt and equity financing for small and midsize businesses. Banks, in recent decades, have deemed these types of lenders “too risky.” So, BDCs put on their big boy risk-evaluating pants and began to provide some powerful payouts that are backed by the cash flows of the firms they lend to.

Double-digit yields are the norm, not the exception, in this extremely niche area of the market.… Read more

This Surprising Fund Has Soared 59% (it’s just getting started)

Michael Foster, Investment Strategist
Updated: October 17, 2019

If you own closed-end funds (CEFs), I have great news: equity CEFs are doing exactly what we want them to: crushing the market while handing us 7%+ dividends.

(And if you’re not yet in CEFs, or want to bulk up your CEF holdings, sit tight: I’ll name a fund you can buy shortly. It has an extra kick in store, thanks to an over-torqued corporate failure: I’m looking at you, WeWork.)

First, here’s what stocks have done this year:

Stocks Soar …

And here’s what CEFs are up to (with the beige line at the top being the equity CEFs tracked by my CEF Insider service).… Read more

1 REIT Clown Show, 2 Better Stocks for Fast 40%+ Returns

Brett Owens, Chief Investment Strategist
Updated: October 23, 2019

Investors have finally pitched a tent above the WeWork circus. Should we REIT (real estate investment trust) shareholders be concerned about a fallout?

The stock was touted in some circles as a potential savior for the office REIT market. As fewer and fewer employees work in traditional workspaces, co-working spots have popped up all over the place in recent years.

Your income strategist knows from experience. Back in 2012 I was a founding tenant for a new tech-focused co-working location here in town. I’m an introvert when I work and found it impossible to take a phone call with everyone yapping in the place.… Read more