These 7%-12% Dividends Are in the Bargain Bin

Brett Owens, Chief Investment Strategist
Updated: May 7, 2022

Mid-cap dividend stocks are the best bargain on the board right now. I love them because lame income investors don’t consider them. They fixate on:

  • Large-cap stocks: For dividend safety.
  • Small-cap stocks: For dividend growth.

Meanwhile many great under-the-radar mid-cap stocks sit between $2 billion and $10 billion in market capitalization. They sit in a “sweet spot” that accommodates dividend safety and growth.

Which is why they generate big returns.

Touchstone Investments reports that, when looking at 20-year rolling returns, mid-caps have experienced “typically higher absolute returns during the last 42 years”:

Source: Touchstone Investments

It’s easy to overlook these names—the media doesn’t talk about them as much, and they tend to have far less analyst coverage than the Apples (AAPL) and Microsofts (MSFT) of the world.… Read more

While Wall Street is In Tatters, This 6.2% REIT is In the Green

Jeff Reeves, Senior Investment Analyst
Updated: May 6, 2022

There’s a famous experiment called “the marshmallow test.” In it, scientists give little kids a marshmallow along with a choice: Eat the treat immediately, or wait 15 minutes to get a SECOND marshmallow to snack on.

The test has been repeated several times over the years, and the results are pretty simple: Kids who delay their gratification for bigger rewards are typically more successful and more well-adjusted in the long run.

And let’s face it, we all know kids who wouldn’t even listen to the instructions and simply stuff that marshmallow in their face as soon as the adult leaves the room.… Read more

Here’s What I Expect From Stocks (and CEFs) for the Rest of 2022

Michael Foster, Investment Strategist
Updated: May 5, 2022

Let’s talk about last Friday’s market crash and the wobbly markets we’ve seen since. Because at times like this, our closed-end fund (CEF) dividends are a key tool to help see us through.

As seasoned CEF investors know the standout strength of these 500 or so funds is their high payouts, which yield around 7%, on average today. Payouts like those can tide us over until we get to the other side of a market meltdown.

So what’s our strategy? In CEF Insider, as with all of our Contrarian Outlook premium newsletters, we’re staying light on our feet, ready to sell struggling holdings quickly, and to pick up bargain-priced dividend payers when they appear.… Read more

Don’t Fight the Fed: Let’s Sell These Dividends on “Rips”

Brett Owens, Chief Investment Strategist
Updated: May 4, 2022

In bull markets, we buy the dips. In bear markets, we sell the rips.

Starting in spring 2020 and through 2021, we dividend investors stayed in “buy the dip” mode. Granted, 2020 seemed like a strange time to want to invest. But the Federal Reserve had our backs.

Heck, Fed insiders knew it. In late February 2020, Vice Chair Richard Clarida sold $1+ million in stock shares—and bought them a few days later on the eve of a certain “central bank announcement.”

The proclamation? That the Fed was prepared to print as much money as it needed to! In order to float the stock market (ha!)… Read more

3 Smart Dividend Trades to Make Now (for 8.4% Yields, 55%+ Payout Growth)

Brett Owens, Chief Investment Strategist
Updated: May 3, 2022

Let’s not fall in love with our dividend stocks—as this can be a big mistake in a dumpster-fire year like 2022. We must be ready to toss “paper” payer tigers out and move into safe dividends poised to “front run” the next big market shift.

(I’ve got three tickers that are smart plays to swing into now, with yields up to 8.4% and payouts that have surged up to 55% in the last five years, taking their share prices along for the ride.)

“Buy-and-Hopers” Get Crushed

Before we go further, let’s take a moment to keep “buy and hold” investors in our thoughts—or as I like to call them, “buy and hope” investors, who sit tight for years, usually in an index fund, hoping for gains.… Read more

Incredible 4-Fund Portfolio Pays $4,417 a Month (With Just $450K Invested)

Michael Foster, Investment Strategist
Updated: May 2, 2022

Today I want to show you how to do the unthinkable and retire in seven years—starting with a $0 nest egg. Our plan hinges on two things: being frugal and investing in closed-end funds (CEFs), which throw off big, steady dividends on the regular.

I know a plan like this sounds impossible. Stocks, after all, are testing 52-week lows; the Fed is quickly raising interest rates; inflation is still on a tear; and a war is raging in eastern Europe.

To be sure, these things are all weighing on the markets now. But there is one great thing about investing these days, and it’s on the income side of things.… Read more

These 7%-8% Monthly Dividends Are on Sale!

Brett Owens, Chief Investment Strategist
Updated: April 30, 2022

One of the market’s most secure, steady sources of generous yield is going through a rare turbulent moment. But these 7% to 8% yields—paid monthly, no less!—are selling at discounted prices we only see once every five years or so.

Is it time for us contrarians to consider “backing up the truck” to load up on these monthly dividend machines?

Why “Preferred” Dividends are This Cheap

“Preferred” stocks are stock-bond hybrids that rarely make Wall Street’s highlight reels. We like it that way, because these funds pay.

These underappreciated secrets don’t usually suffer this bad, either.

You Rarely See Preferreds Get Clobbered This Bad

The reason preferreds are usually so steady is that they simply collect income.… Read more

Tap Into A 7% Yield at a 20% Discount in This Overlooked CEF

Jeff Reeves, Senior Investment Analyst
Updated: April 29, 2022

Personally, I am not a fan of Beyond Meat or any of those fake burgers that are out there. But after a recent trip to the grocery store to buy provisions for a backyard barbecue… the sticker shock alone may turn me into a believer. Ground beef is now up to more than $5 a pound!

I guess I shouldn’t be surprised. Many folks are getting used to paying more amid the red-hot inflation we’re seeing across gasoline, groceries, and just about everything else.

But I am a cheapskate at heart, who refuses to pay more than I have to for anything.… Read more

CEF Investors: Here’s How to Navigate the Selloff (With 8%+ Dividends)

Michael Foster, Investment Strategist
Updated: April 28, 2022

This selloff has gone on seemingly forever, and I’m hearing from more investors who are feeling nervous.

I understand completely. Days of red on the indexes are tough on all of us, myself first and foremost. But the key thing to keep in mind as the world seems to be spinning out of control is that when times like these come along, our CEF strategy proves its worth, for two reasons:

  • Our CEF dividends are helping us through the correction, as they have for all the pullbacks we’ve been through since we launched my CEF Insider service in 2017. Our portfolio yields 8.3% today, and 17 of our 23 holdings pay dividends monthly, so those payouts arrive in line with your bills.
Read more

Flip the 4% Rule “the Bird” and Retire on Dividends Instead

Brett Owens, Chief Investment Strategist
Updated: April 27, 2022

For decades, plain vanilla financial advisors have pitched a “4% withdrawal rate” as a retirement solution. Most were lazily stealing this advice from the smart, thrifty fellow who created the rule.

The 4% idea is that someone with, say, a million-dollar nest egg could safely withdraw $40,000 per year and probably not run out of money before they die. Or, at least, have it last for 33 years.

(And oh, by the way, they’d better hope that the financial poem keeps rhyming with a previous 50-year period. But I digress…)

Not the most inspiring idea, I know. So why are we even talking about this today?… Read more