Earn 7%+ With “Preferred” Yields – 2 Funds to Buy, 1 to Avoid

Brett Owens, Chief Investment Strategist
Updated: May 2, 2017

The annual “sell in May and go away” period for stocks is nearly upon us, and many investors are worried about Wall Street starting to take profits from the market’s go-go run since November. Me? I’m looking for high-quality, high-yield dividend plays that you can buy in May – or June, or July, or whenever – and never sell.

Today, we’re going to discuss two 7%-plus yielders that fit any “no withdrawal” portfolio perfectly.

They are preferred stocks – wonderful “hybrids” that offer aspects of both stocks and bonds. Preferred stocks can trade on an exchange just like any common stock, but they trade around a par value and dole out a fixed regular payment just like a bond.… Read more

3 CEFs to Buy for Safe 8.2%+ Yields and Upside

Michael Foster, Investment Strategist
Updated: May 1, 2017

If you’re interested in getting into the S&P 500, it seems like a good time to do so. Earnings are rising, GDP growth is strong, the unemployment rate is falling, and wages are heading upward.

There’s just one problem: as I wrote a few months ago, the S&P 500 is a lousy bet.

There are a couple reasons why, the biggest being the income problem. If you buy into the SPDR S&P 500 ETF (SPY) or the Vanguard 500 Index Fund (VOO), you’re going to get a dividend yield of less than 2%. So buy $500,000 worth of those funds and get a whopping $791 monthly in cash dividends.… Read more

3 Amazon-Proof Retail REITs Paying up to 5.4%

Brett Owens, Chief Investment Strategist
Updated: April 29, 2017

Amazon.com (AMZN) is eating everything retail alive – including most retail REITs. As a result, the entire sector is selling at fire prices – leaving us with a select handful of underappreciated bargains.

Why the panic? Amazon has completely transformed retail over the past decade or so, starting with books, but expanding into just about every corner of the traditional retail market – clothes, electronics, home goods and even staples like toilet paper and laundry detergent. The company gobbled up $98 billion in “electronics and other general merchandise” sales across all of 2016 – an expansion of nearly 30% that shows Amazon’s growth in e-tailing is still rampant.… Read more

2 Bond-Like REITs to Buy Now (and 1 to Sell)

Bill Stoller, REIT Analyst
Updated: April 28, 2017

What could be better than receiving a raise every year? How about getting more cash in your pocket, and increasing your net worth?

Owning high-quality REITs (real estate investment trusts) with track records of consistently growing dividends is a proven strategy that delivers income today and rewards you with attractive gains for retirement, too.

Let’s consider three well-known REIT names to show how dividend growth can drive price appreciation, and generate outsized returns. There is no magic formula. It really boils down to common sense. A dividend cut or stagnant pay-out can spell disaster, while a growing dividend rewards investors two ways.… Read more

This Popular 9% Payout Is About to Shrink

Michael Foster, Investment Strategist
Updated: April 27, 2017

Imagine an investment that can double in value in 5 years while giving you a 12% income stream that has actually grown over time.

And what if I told you there are a lot of these investments out there? They’re just not well known.

The reason for that is that they’re closed-end funds (CEFs), an investment that isn’t as popular as mutual funds because most 401k plans don’t offer them. And they’re far less popular than exchange-traded funds because they’re just a little more complicated than something like the SPDR S&P 500 ETF (SPY).

ETFs like SPY are easy to set up and manage, which makes them cash cows for issuers like Blackrock, Vanguard and State Street, even though ETF fees are relatively low.… Read more

The “Smart CEF Money” is Buying These 8%+ Yields

Brett Owens, Chief Investment Strategist
Updated: April 26, 2017

Closed-end fund (CEF) investors regularly go crazy. Their bouts with investment insanity often present us contrarian income hunters with 8%+ yields. And big price upside to boot.

But be careful, because these first-level types can be as greedy as they are fearful. It’s important to fade both of their emotional extremes for dividend security and price gains.

Today the mood amongst CEF investors is generally upbeat. Which means there are more “sells” than usual in a sector that should generally be greeted with a bit of skepticism (more on this in a minute).

However there are a few compelling buys today that are a retiree’s dream – 8% yields with, say, 30% price upside.… Read more

5 Dividends That Will Disappear in 5 Years

Brett Owens, Chief Investment Strategist
Updated: April 21, 2017

A high dividend yield can be the ultimate retirement holding. Or it can be a trap.

Today, I’m going to show you five stocks with mouth-watering yields of between 6% and 23% that are tomorrow’s dividend disasters. If you own shares in any of these firms, sell them now.

Don’t “ride these stocks down” like RadioShack shareholders did when the nearly century-old former electronics retailing giant that filed for bankruptcy protection in 2015.

RadioShack suspended its dividend in July 2012. The warning signs were there, but no one listened. Revenues had been in constant decline since their peak 16 years earlier, debts were mounting, ratings agencies were downgrading RadioShack’s bonds.… Read more

3 REITs Paying 6.3% to 7.8% That Will Fund Your Retirement

Brett Owens, Chief Investment Strategist
Updated: April 20, 2017

Real estate investment trusts (REITs), when picked carefully, provide generous dividends that will fund your retirement cash flow needs by themselves.

Today I’m going to show you how REITs are literally the best buy-and-hold asset you can put your money into – and I’ll introduce you to three powerful real estate plays yielding up to 7.8% annually. These three are well positioned for decades of outperformance against the rest of the investment world.

We all know that REITs are income machines. First-quarter 2017 data shows that REITs on average yielded 4.1% — more than double the average S&P 500 stock!

But many self-annointed “REIT gurus” focus too much on income and ignore REITs’ other outstanding virtue: growth potential.… Read more

A “Reborn Dividend Strategy” for Safe 81% to 437% Gains

Brett Owens, Chief Investment Strategist
Updated: April 19, 2017

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 overly-negative sentiment to find value.… Read more

5 Popular REITs to Sell Now

Brett Owens, Chief Investment Strategist
Updated: April 18, 2017

Real estate investment trusts (REITs) have essentially one job to do for their investors – pay reliable dividends. Many do, but when firms find their payouts in jeopardy things get ugly in a hurry. Which is why you need to avoid, or sell, the five ticking time bombs we’re going to discuss today.

Dividend cuts don’t just “happen.” When a REIT slashes or suspends its dividend, it’s rarely a surprise – and rarely an isolated incident.

Let’s consider Armour Residential REIT (ARR) – here’s five years of dividend cuts and misery:

Sure, the current yield for Armour always looks good at 10% or higher.… Read more