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

The 3 Best Big Dividends (Up to 9.5%) for This Uncertain Market

Brett Owens, Chief Investment Strategist
Updated: October 20, 2018

Dividends or growth? Why choose?

There’s a widespread belief that stocks and funds can deliver red-hot capital gains or substantial income, but not both. Fortunately for us that’s not true.

It is possible to collect big dividends and capital appreciation. I’m going to show you how to safely collect 32% in total returns in less than a year from a big dividend payer. And while this “easy dividend money” has been made, we’ll discuss three more stocks yielding around 8%-9% that can deliver 20%+ in dividends and upside over the next twelve months..

Income investors like you and me should focus on total returns, which are made up of dividends and price appreciation.… Read more

2 BDCs to Buy Now and An 11% Payer to Avoid at All Costs

David Peltier, Senior Investment Analyst
Updated: October 19, 2018

Do you want to generate income that increases along with interest rates, with the potential upside from private equity investments? A Business Development Company (BDC), a type of closed-end investment company, could be the answer you’re looking for.

BDCs were created by the U.S. Congress back in 1980, as a way to help small- and mid-size businesses grow. They invest in debt and/or equity and often provide operational assistance to the internal management team. Similar to real estate investment trusts (REITs), a BDC distributes at least 90% of its profits as dividends.

It’s the dividends that really make BDCs stand out in this rising interest rate environment, especially since trading volatility has spiked of late.… Read more

Your Contrarian Guide to Post-Selloff Profits (and 7.5% Dividends)

Michael Foster, Investment Strategist
Updated: October 18, 2018

With the stock market collapsing 6% from its all-time high in just two weeks, a lot of people are freaking out.

Don’t follow them!

Because now is the best time to buy we’ve seen in a long time.

Before I show you my top 3 “buy now” indicators—which are all blaring green—and a bargain 7.5%-yielder to jump on now, let me first say that we’ve been here before.

In mid-February, with the market again on its back, I urged readers not to panic. This has happened since:

A Quick Recovery

While a 1.6% total return in 8 months isn’t much to write home about, it’s not the massive loss a lot of investors are terrified of today.… Read more

There Are 17 Better Plays (Paying 7.5%) Than These 998 Bonds

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

How’s your bond portfolio doing? It should be a rock of stability right now.

Of course we may need to look past prices, which can swing wildly, and focus on net asset values and income, which are more reliable anchors.

For example I’ve been hearing from readers who were concerned that our excellent PIMCO Dynamic Credit and Mortgage Fund (PCI) isn’t “acting well.” Its price has whipsawed around this year, mostly in our favor. But lately it’s pulled back amidst the broader market drama and subscribers are worried the market “knows something” that we don’t.

Let’s put this price volatility in perspective.… Read more

Your Post-Crash Action Plan for 600% Dividend Growth

Brett Owens, Chief Investment Strategist
Updated: October 16, 2018

If you’re wondering what to do in this panicky market, I’ve got a few “get rich quick” words for you: buy cheap, high-quality dividend growers with both hands.

I know that’s easy to say, but overcoming fear is vital, because history proves it’s the path to serious wealth. I can show you why in 2 charts. Here’s the first one:

A Snapshot of Terror

This is the CBOE’s S&P 500 Volatility Index, which captures panic in a picture, spiking when the market tanks and dozing off when markets gently rise. When you overlay the VIX with the market’s ups and downs, a can’t-miss pattern emerges: folks who “bought terror” have ridden every dip to big gains!… Read more