This Contrarian Buy Could Ignite Double Digits (and pays 7.5%)

Michael Foster, Investment Strategist
Updated: November 1, 2018

From what I hear from readers these days, a lot of people out there are compulsively clicking the “refresh” button, living in fear of the next 500+-point drop in the Dow.

But is now the time to actually start panicking?

We’re going to dive into that question today. I’ll also reveal 1 fund that protects your nest egg with a unique form of “insurance” while handing you a huge 7.5% cash payout.

More on this lifesaving “pullback-proof” dividend a little further on. First, we need to talk about …

Why the Pundits Are Wrong (Again)

The market wipeout has had one extra element that’s added even more terror: dire warnings from the semiconductor industry, which sent Advanced Micro Devices (AMD), Texas Instruments (TXN) and Nvidia (NVDA) into free-fall and badly beat up the benchmark VanEck Vectors Semiconductor ETF (SMH).Read more

Don’t Be Tricked By This Pullback — Buy These 7.7% Payers Instead

Brett Owens, Chief Investment Strategist
Updated: October 31, 2018

Don’t be tricked by these manic markets. Let’s use this opportunity to “lock in” some inexpensive 7.7% dividend treats.

You probably know the mistake that most basic investors make. They fixate on the wrong charts and the wrong tickers. For example most “buy and hope” types are bemoaning the stock market’s near-10% correction:

Rocky Times for Buy and Hope Investors

Meanwhile savvier shareholders are focusing on dividend disparities like this one from Omega Healthcare Investors (OHI). The healthcare REIT (real estate investment trust) yields 7.8% today, which is more than four times what the slumping S&P 500 pays!

Four Times the Dividend Yield

OHI investors might not even realize that the markets are down.… Read more

2 “Forever” Stocks to Grab on This Pullback (paying up to 7.7%)

Brett Owens, Chief Investment Strategist
Updated: October 30, 2018

What if you could lock in a 7.7% gain year in and year out, and get it all in cash, no matter what the S&P 500 does?

With the market’s paper gains for 2018 now mostly gone, no thanks to the correction, I’m guessing this would have a lot of appeal. So today, I’m going to show you 2 “pullback-proof” dividends paying 5.4% and 7.7%, with plenty of price upside ahead, too.

Thanks to the pullback, these two are perfect for buying now and sitting on forever (or at least a few decades). More on them in a moment.

How to Beat Fear and Get Rich From the Pullback

First, if the daily barrage of negative headlines has you pondering bailing out on stocks, stick with me for a second, because that’s the worst thing you could do now.… Read more

13 Unstoppable “Megatrend” Funds You Can Buy Now

Michael Foster, Investment Strategist
Updated: October 29, 2018

If you’re like most people, you probably think it’s tough to find a fund that’s had a great 2018, especially since recent volatility has brought pessimism back in vogue.

But you’d be wrong.

Truth is, a lot of funds are doing well, with over 400 up nearly 5% or more so far on the year. The top performers share 3 common themes that could tell us a lot about which sectors are poised to take off next year.

Let’s dig in. Along the way, we’ll hone in on 13 funds cashing in as these breakthrough trends head higher.

Trend No. 1: A Return to Healthcare (5 Funds)

Investors tend to get scared of healthcare and biosciences stocks during times of broader market unease, but every once in a while they ignore the panic and focus on the lifesaving innovations this sector can provide.… Read more

5 “Correction-Proof” Yielders: They Go Up When the Market Goes Down

Brett Owens, Chief Investment Strategist
Updated: October 27, 2018

This bull market is ten years old and stocks at large are richly valued. No wonder the last few weeks have been scary for some, who haven’t seen a real bear market in a very long time. Should we take our cue from the recent pullback to sell some positions, hunker down in cash and “wait things out” for a bit?

Absolutely not. First, it’s very difficult (and really, impossible) to know when it’s time to “get back into stocks.” Hulbert Financial recently ran the numbers for Barron’s on the advisors it monitors. It focused on the best “peak market timers” – the gurus who correctly forecasted the bursting of the Internet bubble in March 2000 and the Great Recession in October 2007.… Read more

Sears’ Bankruptcy Could Suffocate These 2 REIT Dividends

David Peltier, Senior Investment Analyst
Updated: October 26, 2018

Another one bites the dust.

That’s what I thought when I saw earlier this month that Sears Holdings (SHLD) was throwing in the towel and filing for bankruptcy.

The news was not too surprising for anyone that’s been following the retail sector, but with nearly 200 Sears and KMart stores that are now slated to close, it could be the blow that knocks some mall REIT dividends to the mat for a 10-count.

That’s because in addition to Sears, Mattress Firm, Brookstone, Claire’s and Bon-Ton are just a few of the retailers that also went under in 2018.

The mall was already on life support before Amazon.comRead more

What Everyone Ought to Know About Closed-End Funds

Michael Foster, Investment Strategist
Updated: October 25, 2018

In a recent survey of CEF Insider readers, a few asked me whether I prefer equity or debt closed-end funds (CEFs) and why.

It’s an intriguing question because the two fund types act very differently. So let’s dive into these differences, and the benefits both breeds offer, so you’ll know which fits best in your portfolio now.

Equity Vs. Debt Funds

Put simply, an equity CEF has more than half its assets in stocks, while a debt CEF has more than half its assets in debts—usually corporate bonds, junk bonds or municipal bonds. Sometimes the lines get blurred, like with convertible-bond funds that also buy stocks.… Read more

The Safest Dividend Stocks for a 2008 Repeat

Brett Owens, Chief Investment Strategist
Updated: October 24, 2018

If you’re like many income investors I hear from, you’re probably worried about a repeat of 2008. The media doesn’t help – the talking heads like to conjure up fear because it draws eyeballs to the TV screen and clicks to Internet articles.

And so what if they’re right for once? In a moment we’ll discuss the safest dividends for a serious pullback.

First, let me calm you down and add that a 2008 rerun is not our most likely scenario. As generals tend to fight the last war, investors tend to fear the last bear market. The next bear is likely to have its own unique “charm” – causes and effects – and we’d like to figure out that flavor ahead of time.… Read more

Buy These 3 Stocks Before November 6 (or miss 117%+ dividend growth)

Brett Owens, Chief Investment Strategist
Updated: October 23, 2018

I’m about to show you 3 dividend powerhouses set to soar thanks to one of the most powerful (and misunderstood) profit indicators there is.

It involves the midterm elections—but only because the vote will remove some uncertainty and likely propel the market higher. But that’s only part of the story.

Because I fully expect this market to hold onto its midterm pop, then surge double-digits in 2019, thanks to the 1 proven indicator I’ll show you today.

90-Year-Old Indicator Signals Big Gains in 2019

I’m talking about a proven way to play the political calendar for 13%+ gains (plus dividends) in a single year.… Read more

This Huge 8.3% Dividend Is Hiding in Plain Sight

Michael Foster, Investment Strategist
Updated: October 22, 2018

With the recent panic, many people fear there’s just no good way to make good money in stocks anymore.

This is really short sighted!

And dead wrong.

But to make the most profits in a market like this, you simply must choke back your natural instinct to flee when stocks are a sea of red.

To see how being greedy when others are frightened pays off, let me show you a classic example: a fund that holds the very investments that set off the financial meltdown back in 2008. And you’ll probably be shocked to hear that I see them as a screaming buy today.… Read more