“Money printer go brrrrrrrrr!”

This humorous investor war cry making the social media rounds these days is all you need to know about the Federal Reserve’s tactics to fight off the coronavirus. Jerome Powell is printing money like there’s no tomorrow.

In fact, since March, he’s created more than $3 trillion fresh dollars! This has been the largest money creation event in the history of the planet.

Powell Prints, Money Supply Soars

More money is lousy news for each outstanding greenback. The US dollar is starting to tailspin lower thanks to a flood of supply:

More Dollars Means Each One is Worth Less

What dividends do we buy when the dollar is weak?… Read more

Stocks have (shockingly) broken into the green for 2020 … but few folks are celebrating. That’s understandable: coronavirus cases are surging and another wave of lockdowns is a real possibility.

But there is good news here.

First off, I’ve found a “heads-you-win, tails-you-win” fund that’s perfect for these times. It pays a 7.5% dividend and boasts a portfolio of stocks we know well: Microsoft (MSFT), Apple (AAPL), Amazon.com (AMZN) and MasterCard (MA) among them.

Before we get to this fund, we need to take a close look at this levitating market so we can see exactly what it means for our portfolios as we move into the unpredictable back half of 2020.… Read more

“Brett, how you hanging in there?” My CPA leaned into his computer on our latest Zoom call.

“Well, every time Gavin Newsom talks, my life seems to get a bit worse.” (The governor of California had just announced that public and private schools would not open in the fall.)

He cracked up. “That comment reminds me of a column you wrote years ago about (then Fed Chair) Janet Yellen. Something about Yellen yapping and closed-end funds (CEFs) rising?”

“Right. Poor Janet. She sure was level-headed compared to (current Fed Chair) Jay Powell. Every time Powell speaks, gold pops!”

The reason is obvious.… Read more

These days, everybody’s looking for the one magic indicator that says when an investment is overbought—or better yet, reveals if it’s a terrific bargain.

Of course, no signal is right 100% of the time, but there is one that gives us the next best thing and unlocks high, “crisis-resistant” dividends, too.

The Perfect Crisis-Investment Indicator (for 7%+ Dividends)

The “bargain alert” I’m talking about is a figure called the discount to net asset value (NAV). And you’ll only find it in a high-yielding investment called a closed-end fund (CEF).

Before we venture too far into financial-jargon land, let’s unpack this, because what I’m about to show you is the simplest, most effective way I know of to grab steady 7%+ dividends and predictable upside in any market.… Read more

Preferred stocks are hands-down the most ignored investments in this crisis. That’s too bad, because they’re one of the best ways to get a high, safe income stream. And you can supercharge their dividends by purchasing these “dividend unicorns” through preferred-stock closed-end funds.

Before I go further, let me say that if the term “preferred shares” has your eyes glazing over, I get it: most people feel these investments are too obscure to bother with. But stick with me, because preferreds are actually perfectly suited to today’s contradictory economy, with its high numbers of bankruptcies and a rising stock market.… Read more

Quick income quiz—what’s the longest running bull market powering dividend payers? It may be the multi-decade run in healthcare spending.

Dividend stocks that are providing products aligned with this megatrend have the types of payouts that we’re looking for in a retirement portfolio:

1. Secure cash flows, with
2. Rising profits to support future dividend growth.

At a time when we can no longer take dividend payments for granted, this type of “megatrend support” is becoming a must-have.

We’ll talk specific stocks in a minute. First, let’s get into the trend and spend. The Centers for Medicare & Medicaid Services provides estimates of US health care spending by sources of funds, such as private healthcare insurance, Medicare and so on.… Read more

Here’s a critical mistake anyone can make while hunting for big dividends in a market like today’s: you can buy the right stocks at the right times—and still lose money!

2020 is a good example: even though the S&P 500 is back now positive on the year, you almost certainly suffered some degree of the following wipeout, no matter which stock you would have bought at the start of 2020:

The Headache of Going All in on Stocks

Ask anyone and they’ll likely say the market has been totally unhinged this year; bulls will say stocks shouldn’t have fallen as far as they did in March, and bears will say they shouldn’t have recovered so quickly.… Read more

I lifted my mask a bit so that my old office neighbor could recognize me:

“Hey!” he said. “Saw you and the pup the other day in front of Shake Shack. I remember when she used to sprint down the hallway, and now…”

“Yeah,” I sighed. “It’s tough. Chronic arthritis, or something. X-rays, MRIs and a cocktail of drugs. Poor thing is only eight but acting like she’s going on 18. Anyway, we’re trying everything. What’s new with you?”

“I’m actually trying to take a sabbatical. Get out of here for a while.” He paused. “If any place will take me!”… Read more

If you’ve read my articles in the last few weeks, you may have noticed I’ve been writing about inflation more lately. I’m doing so because your income portfolios—especially your bonds!—are at risk as a result of recent money printing.

My recent monetary focus has taken many readers by surprise. After all, we haven’t seen sustained inflation in 40 years. Nothing like a four-decade lull to lure an investor into a false sense of “60/40 retirement portfolio” security!

But even though we’re staring at day-to-day deflation right now, with lockdowns hitting demand for most products beyond the essentials, make no mistake: the ingredients for inflation are there.… Read more

This crisis has hit income-seekers—particularly retirees—hard. After the stomach-churning March selloff came the slashing of “sacred cow” dividends, like those of senior-care providers Ventas (VTR) and Welltower (WELL).

Look to Closed-End Funds for Retirement Income

It’s understandable (and healthy!) if the past few months have made you extra cautious when picking dividend stocks. The good news on the dividend front is that you can still find plenty of high, safe payouts in my favorite corner of the high-yield market: closed-end funds (CEFs).

CEFs are a great pick for retirement income today, for three reasons. First, they still give you access to large-cap stocks you know well: mainstays like Visa (V), Apple (AAPL) and Johnson & Johnson (JNJ) feature in many equity-CEF portfolios.… Read more