6 “Retirement Maker” Funds Paying Up to 10.8%

Brett Owens, Chief Investment Strategist
Updated: December 14, 2018

Today we’re going to discuss six “retirement maker” funds that pay dividends up to 10.8% annually. You will not find these types of yields in mainstream financial publications. Here’s why.

It’s important for you to fade Wall Street’s advertising machine and buy value, not hype – especially when it comes to dividend payers. Stick with excellent yet off-the-beaten-trail CEFs (closed-end funds) and ignore the marketing machines promoting their latest overrated ETFs (exchange traded funds).

Please, Whatever You Do, Don’t Buy Bond ETFs

Be careful how you buy your bonds. The most popular tickers have a few fatal flaws that’ll doom you to underperformance at best, or leave you hanging in the event of a market meltdown at worst!… Read more

Here’s Where Stocks Are Headed in 2019 (and 2 Buys Paying 7%+ in Cash)

Michael Foster, Investment Strategist
Updated: December 13, 2018

Remember two months ago? The S&P 500 was hitting record highs daily—and stocks were looking at a hefty 9% gain on the year.

It feels like a dream! Because here’s where we are today:

Poof!

Now we find ourselves down 10% from those highs and staring down the real possibility of a negative year for stocks.

We’ve Been Here Before

If this has left you feeling a little shaken, you’re far from alone.

My take? Tough as it is, resist the gut-driven urge to sell, because this is a buying opportunity. (I’ve got 2 dirt-cheap funds throwing off 7%+ dividends that are perfect buys for the coming rebound.… Read more

This 20.1% Yield is Too Good to Be True (But This 11.8% Payout Isn’t!)

Brett Owens, Chief Investment Strategist
Updated: December 12, 2018

Most dividend investors understandably love the idea of an 8% No Withdrawal Portfolio. It’s a simple yet “game changing” idea that you don’t hear much from mainstream pundits and advisors.

Find stocks that pay 7%, 8% or more and you can retire comfortably, living off dividend checks while your initial capital stays intact (or even appreciates).

Now this strategy is a bit more complicated than simply finding 8% yields and buying them. Granted the recent stock market pullback has benefited investors like us because we can snag more dividends for our dollar. Yields are higher overall, and that’s a good thing.… Read more

4 “Powell-Proof” Stocks Set to Skyrocket in 2019 (and 1 to Sell Now)

Brett Owens, Chief Investment Strategist
Updated: December 11, 2018

If you’re confused about the direction of interest rates, don’t worry—Fed Chair Jerome Powell can’t figure it out either!

And today I’m going to show you 4 “Powell-proof” stocks set to explode in 2019—whether rates take off or freeze in place. First, back to Powell.

An Epic Flip-Flop

You may recall October 3, when the Fed chief, momentarily forgetting his words can tank the market, said, “We’re a long way from neutral, probably,” in reference to rates.

Here’s what followed:

Loose Lips …

Powell has since changed tack. His new line? Rates are now “just below” neutral.

Traders betting through the Fed Fund futures market took the bait.… Read more

Here’s Where We’ll Find 20% Upside (and 5% Tax-Free Dividends) in 2019

Michael Foster, Investment Strategist
Updated: December 10, 2018

There’s a rare opportunity bubbling up in an obscure corner of the market, and we need to act now, because with a quick hand, we can snag 5.9% tax-free dividends in 2019 and double-digit upside—in just 3 quick buys.

I’ll reveal the names of these 3 surprising investments in a moment.

But for now, I’ll tell you that this time-limited shot at income and gains comes from the municipal-bond market—and specifically a shift in the interest-rate picture that “muni” investors have completely missed. But that won’t last.

Let me explain.

As everyone knows, 2018 has been a year of constant rate hikes.… Read more

Week in Review: Overseas News and Yield Curve Creates Selling Pressure

David Peltier, Senior Investment Analyst
Updated: December 8, 2018

It was a short, but volatile week for U.S. markets, which were closed on Wednesday, in remembrance of President George H.W. Bush.

The big story this week was the partial inversion of the U.S. Treasury yield curve, as stocks swung violently against each conflicting headline resulting from ongoing trade talks with China and potential OPEC production cuts.

The yield curve is an important barometer for stock investors of all shapes and sizes. In general, the curve slopes upward over time, as positive economic growth and inflation tend to go hand-in-hand.


Source: www.treasury.gov

However, the curve inverted this week, when 5-year interest rates moved below 2-year rates.… Read more

3 Hidden Dividend Gems We’ll Be Toasting in 2029

Brett Owens, Chief Investment Strategist
Updated: December 7, 2018

If you want to retire on dividend income, then you probably need to avoid S&P 500 stocks altogether.

Collectively they yield 1.9% today. This means that a million dollars invested will generate just $19,000 per year. That’s “side hustle” money, not an actual full salary.

Another problem with buying popular stocks and “hoping” they appreciate in price? The odds are actually stacked against you thanks to an uneven business playing field. Check out the returns of “safe” S&P 500 stocks year-to-date. Would you like to throw a dart blindfolded at this board?


Source: Contrarian Outlook

If you delved into some of the stocks from this grossly overcrowded index, you …

  • Had a better-than-50% chance of losing money.
Read more

3 Trade-War Winners for 7% Dividends and Big Upside

Michael Foster, Investment Strategist
Updated: December 6, 2018

Monday’s major jump in stocks is the beginning of a trend that will catch a lot of investors by surprise: fundamental strength thanks to trade war fears abating.

We aren’t out of the woods yet, as Tuesday showed us. While the market cheered the tentative cease-fire between Xi and Trump on Monday, the lack of details and confusion hit the market on Tuesday.

And that’s a good thing, because it’s set up investors for an opportunity to buy equities cheap before the relief rally around the corner.

Trade Ceasefire Opens Buy Window …

The way I see it, the trade-war ceasefire is likely the beginning of a deal coming down the pipe in the next three months.… Read more

This Top “Convertible” Bond Trades for Just 87% of Book Value

Brett Owens, Chief Investment Strategist
Updated: December 5, 2018

Stocks or bonds? For income-focused investors, why not blend the best of both worlds to collect interest and enjoy share price upside?

This is the goal of convertible bonds, a “country club” favorite. (Before the holidays you may be tempted to add some convertibles to your portfolio simply so that you can brag about them to friends and family!)

Convertible bonds, like the preferred shares we discussed last week, pay regular interest. In this way, they act like bonds. You buy them and “lock in” regular coupon payments.

But convertibles are also like stock options in that they can be “converted” from a bond to a share of stock by the holder.… Read more

Alert: Sell This Flimsy 4% Dividend Now (and buy these 5%+ payouts instead)

Brett Owens, Chief Investment Strategist
Updated: December 4, 2018

Right now, I’m betting you’d jump on a stock that pays a high dividend (I’m talking 5% and more here) and doesn’t sink with the market in a crash.

I have great news: today I’m going to reveal 2 such stocks. Each hands us growing 5%+ dividends now—and each steered through the market’s stomach-churning autumn without a scratch.

One of these plays even rose 9% while the broader market went up in smoke!

And these 2 are just getting started: both of these “pullback-proof” dividends have baked-in price upside we’ll enjoy in 2019 and well beyond.

Why?

Because both of these 5%+ payers are riding unstoppable megatrends that will lift their stocks for decades to come.… Read more