Crucial: My No. 1 Buy for 8.5% Dividends and 20% Gains (by 2019)

Michael Foster, Investment Strategist
Updated: June 11, 2018

I don’t want to alarm you, but if you’ve got a lot of cash sitting on the sidelines right now, you’re about to miss out on a double-digit stock-market gain in the next 6 months.

In a moment, I’ll show you 5 funds you can buy today to lock in these quick, life-changing profits (and dividend payouts, too). To make it even easier for you, I’ve ranked these 5 popular buys from worst to first.

But first, let me tell you what I’m basing this bold prediction on. The story starts in early February of this year.

You no doubt recall those wild days: after a sharp run-up in stocks in January, which itself was on the heels of a 23% gain for the S&P 500 in 2017, the SPDR S&P 500 ETF (SPY) suddenly did this:

A Nosedive

Panic was in the air—so much so that I was getting calls from worried family and friends asking me what was causing the selloff and what it meant for their retirements (I wrote about that in this article).… Read more

3 Stocks Yielding Above 6.1% with Surprise Earnings Momentum

David Peltier, Senior Investment Analyst
Updated: June 9, 2018

When most investors hear about a momentum stock, they expect to see a chart with multiple zig-zagging trend lines. However, I believe the trend can also be your friend with fundamental data and help individuals find potential winning investments.

Price momentum is important for traders looking to make a quick hit in days or weeks, but fundamental momentum can help investors generate a steady and growing amount of dividend income over a period of years.

The key for any stock that pays a dividend is the underlying profit that supports the payout each period. Investors have historically rewarded companies that consistently exceed (or surprise) expectations and higher earnings can lead to higher future dividends.… Read more

4 “Do-Gooder” Dividend Growth Stocks to Buy

Brett Owens, Chief Investment Strategist
Updated: June 8, 2018

Environment, social and governance (ESG) investing. Socially responsible investing (SRI). Sustainable investing. These are some of the biggest investing buzzwords of the past few years, pointing to a movement by investors pushing companies to be more conscious about their impact on issues such as climate change, diversity, human rights and sustainability.

But ESG, SRI and the like are more than just buzzwords. They’re actually the principles behind several hot-performing stocks, as well as some of the more attractive dividend-yielding blue chips on Wall Street. And today, I’ll explain how some of these “do-gooder” stocks actually translate their principles into better profits, bigger share gains and fatter dividends that we can compound into retirement riches.… Read more

The Amazing 10.9% Dividend Left for Dead (time to buy)

Michael Foster, Investment Strategist
Updated: June 7, 2018

Today I’m doing something unusual: I’m changing my call on a popular closed-end fund (CEF).

Why?

Because this fund has gone on sale, and it’s just too good of a deal to overlook. If history is any guide—and with this fund it almost always is—it’s in for some nice upside very soon. In the meantime, buyers will grab a hefty and safe 10.9% cash dividend!

So if you dropped, say, $100k into this fund tomorrow, you’d get nearly 11% of your investment back—in cash—just one year from now (and I should also mention that it pays dividends monthly, too).… Read more

The Dividend Strategy for Safe Returns Up to 437%

Brett Owens, Chief Investment Strategist
Updated: June 6, 2018

Just because you’re a dividend investor doesn’t mean you’re fated to “grind out” income 3% and 4% at a time. With a slight change to your current (dare I say pedestrian?) strategy, you can keep your dividends and enjoy 81% to 437% price upside or more.

These types of life-changing returns are easily achievable within a few years. You just need to employ the “ultimate contrarian dividend strategy” – and buy select born again payouts.

The strategy is two-fold:

  1. Find the stocks with rock-bottom sentiment around them, and
  2. Only buy them when a cheery outlook is guaranteed.

First, Find Firms Burdened With This “Stigma”

Contrarian investing works because it capitalizes on over-negative sentiment to find value.… Read more

Top 3 Dividend Stocks Under $10

David Peltier, Senior Investment Analyst
Updated: June 5, 2018

When investors look for dividends, they usually think about blue-chip names that are just as common on Main Street as they are on Wall Street. However, there are a large number of single-digit stocks flying under the market’s radar that also offer attractive yields.

Individual investors tend to gravitate toward stocks trading under $10 for multiple reasons. For one, it can psychologically feel more powerful to buy 100 shares of a company trading for $7 than just seven shares of a $100 name.

While both investments are just as likely to generate attractive returns over time, low-dollar stocks have historically proven to be more volatile.… Read more

This Deceiving Chart Is Costing You Money (Guaranteed)

Michael Foster, Investment Strategist
Updated: June 4, 2018

I saw an interesting tweet the other day—someone commenting on how lots of people have no qualms racking up $100,000 in debt to get a university degree but think putting $5,000 into the stock market is too risky.

The foolishness of this thinking is evident to anyone familiar with the stock market. Five-thousand dollars in a bland S&P 500 index fund like the SPDR S&P 500 ETF (SPY) would now be worth $12,175 after just a decade. That’s a lot of money to give up on just because of fear!

And don’t be fooled: this kind of thinking isn’t prudence. It’s fear.… Read more

4 High-Yield Landmines to Avoid at All Costs

Brett Owens, Chief Investment Strategist
Updated: January 6, 2019

The stock market’s up, so yields are down. And while there are still some generous payers available, be careful – some are paper tigers that will probably suffer this year.

That’s exactly the danger that’s facing four enticing high-yielders (yielding up to 20%!) that I’ll discuss with you shortly.

Since stock prices generally follow their payouts higher, it’s important to remember the opposite also happens. When dividends get cut, shares get crushed.

I’ve warned readers about Frontier Communications (FTR) and its dangerous dividend for years now. Hopefully investors listened to me, because those that didn’t lost “two ways” – they lost their yield and they lost their capital:

The Danger of Dividend Cuts

Frontier’s 2017 dividend cut – as well as its 2018 dividend suspension – are just one cautionary tale.… Read more

An Easy Nest Egg “Tweak” for Safe 24.8% Gains

Brett Owens, Chief Investment Strategist
Updated: June 1, 2018

Last week, I showed you a smart monthly income strategy that hands you $3,333 a month on a $500k investment—all in dividends alone.

This easy monthly dividend setup works out to an average 8% yield (or $40,000 a year on our $500k) paid out to you every 30 days like clockwork.

I think you’ll agree this is plenty of cash for many people to clock out on. So today we’re going to talk growth.

Because our $3,333-a-month “8% strategy” already crushes Wall Street’s flawed 4% rule. You know the one: it recommends that you draw down 4% of your nest egg a year by selling stocks to supplement your dividend income.… Read more

The Incredible 11.2% Dividend Everyone Has Missed

Michael Foster, Investment Strategist
Updated: May 31, 2018

Today I’m going to take you inside the most disrespected, criticized, lambasted and just plain ignored investments on the market today.

Why would I do that?

Simple. Because if you’re not as rich as you’d like to be, these unloved income plays are the perfect way to get you there.

I’m talking about closed-end funds (CEFs), a group of investments that, with a bit of effort (which I’m happy to put in for you) can hand you big, fast upside, safe cash dividends of 8% and higher—or both.

So why do so many investors see CEFs as perennial money losers?… Read more