Where to Find 10% Yields at 20%-30% Discounts

Brett Owens, Chief Investment Strategist
Updated: June 17, 2022

Get your dip-buying lists ready, because it’s almost time to pounce.

Just recently, I explained to investors that, as a contrarian, we only want to fully dive into the market when we have a clear edge—the kind of edge you get when Wall Street has fully capitulated:

“We only want to fully invest when the regular investor has thrown in the towel. And there are plenty of indicators that can tell us exactly when our time has come. Consider, for example, the closely watched CNN Fear/Greed Index, which sits at 26 as I write.”

That was just a week ago.… Read more

This 7.4%-Yielding Fund Profits as Rates Rise (and Pays Dividends Monthly)

Michael Foster, Investment Strategist
Updated: June 16, 2022

As difficult as this selloff has been for all of us, it has left some attractive (and discounted) dividends on the board, especially in high-yield closed-end funds (CEFs).

I know it’s tough to buy in a market like this, but the dividends we’re going to talk about today actually benefit from rising inflation, posting higher and higher cash flows as the CPI shoots higher and higher, too.

These are the companies we want to be in now, both to collect their high dividends through today’s tire fire and to profit when the market waters (inevitably) calm and investors finally take notice of these stocks’ sturdy cash flows.… Read more

Is This the Dividend Trade of the Decade?

Brett Owens, Chief Investment Strategist
Updated: June 15, 2022

Attention, growth investors! A quick stock market question for you.

(Dividend people, you are welcome to play, too.)

Take a quick peek at the chart below. The lines are revenue gains over the past twelve months for four stocks.

Three of them are top holdings in ARK Innovation ETF (ARKK). The fourth, well, is a contrarian special that careful readers already know. (Hint, hint.)

Which sales curve would you want to own?

Pick Your Growth Stock

Did you peek at the key? Of course you did. Well, were you surprised that Exxon Mobil (XOM) was running laps around these three laggards?… Read more

How My “Dividend Magnet” Strategy Delivered 148% Returns

Brett Owens, Chief Investment Strategist
Updated: June 14, 2022

Look, I know it’s heartbreaking to invest in this dumpster-fire market. Heck, even if you do everything right and only buy top-quality dividend stocks, they still seem to plunge a day (or two at most!) later.

This is why, in last Tuesday’s article (the first in a series on how my proven “Dividend Magnet” plan can boost your returns), I urged folks to keep a healthy cash pile to invest on the other side of this crash—and that time will come! I’ll tell you when we’ll fully deploy our hoard in my Hidden Yields dividend-growth service.

Meantime, we’ll continue to trade lightly—buying only in small lots and only for the long haul.… Read more

3 “Inflation-Fighter” Dividends That Pay $958 a Month on Every $100K Invested

Michael Foster, Investment Strategist
Updated: June 13, 2022

There’s a glaring disconnect out there between the health of the economy (still strong) and the mood of investors (terrible). It’s opened a window for us to grab some solid closed-end funds (CEFs) throwing off yields of 8%+.

This is especially true if you’re investing for the long term, which, if you are investing for income like this, you should be.

We’re going to talk about three such high-income plays today (one of which offers an 11.5% payout that’s growing) and dive just a little deeper into why this opening exists for us.

Fast Growth + Worried Investors = Best Time to Buy CEFs

If you’re a bit nervous about investing right now, I get it.… Read more

This Real Estate Play Has Boosted its Dividends 9X Over 10 Years

Jeff Reeves, Senior Investment Analyst
Updated: June 10, 2022

I had some friends over last weekend and the weather was gorgeous. So of course, I fired up the grill. This wasn’t flipping a few premade burgers and dogs though – we’re talking a dozen steaks, cooked to a perfect medium rare.

In all humility, I cook a steak with the best of them. But there’s not much of a secret to it. I just pick fresh, quality cuts of meat from a local butcher and let the grill do the work.

I approach my personal investing portfolio the same way as my grilling. Namely, it’s all about HIGH QUALITY INGREDIENTS.… Read more

Why Gold Is a Lousy Inflation Hedge (and 3 Big Dividends That Work Much Better)

Michael Foster, Investment Strategist
Updated: June 9, 2022

There are few things that have a stronger hold on investors’ imagination than gold. When inflation and market volatility spike, many folks simply can’t resist the yellow metal’s call.

But the truth is, for us dividend investors, gold is a raw deal. That’s mainly because, of course, it pays no dividend! Heck, if you buy physical gold, it actually comes with a cost for storage and safekeeping.

Worse, gold doesn’t even work as a hedge against inflation and volatility—at least it sure hasn’t this time:

Inflation Storm Hits, Gold Tanks

This shows the dangers of buying based on outdated investor “sacred cows” like the one that says gold is a safe haven.… Read more

This 9.3% Dividend Welcomes Inflation

Brett Owens, Chief Investment Strategist
Updated: June 8, 2022

What’s better than a 9.3% dividend stock? How about one that’s poised to pop as interest rates rise?

Business development companies, or BDCs for short, are overlooked by most income investors. That’s too bad for them because these dividend deals can be pretty sweet.

Especially when rates are rising.

BDCs cut loans to small businesses. Their inflation-friendly component comes from floating rate loans. BDCs that lend this way make more money when rates rise.

BDCs came to life in 1980 when Congress whipped up these tax-advantaged entities. Like the REITs we all love, BDCs are cleared by Uncle Sam for tax-free profits, provided they dish most of their green as dividends.… Read more

My Advice? DON’T Buy Dividend Stocks (Unless You Can Answer These 3 Questions)

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

Here’s some advice you might be surprised to hear from an investment-newsletter writer: Do NOT buy stocks right now.

That is, unless you can answer an emphatic “yes!” to these three questions:

  1. Are you investing for the long term?
  2. Are you investing in stocks that are not only growing their dividends but accelerating that payout growth?
  3. Are you only investing a small portion of your holdings (and ideally keeping the bulk in cash to ride out this storm)?

If you answered yes to all three, great! I’ll show you what you must demand in any dividend grower to ensure you’re locking in a safe payout while protecting yourself from today’s Fed-driven market panic.… Read more

These 3 Funds Are Run By Wall Street’s Top Managers (and Yield Up to 11.7%)

Michael Foster, Investment Strategist
Updated: June 6, 2022

When markets are down, there’s one group of investors who can shrug off the dip because they don’t need to sell. You’re no doubt part of this group—I’m talking about income investors.

With dividends, of course, you can keep your cash flow going regardless of short-term panics over things like interest-rate hikes and geopolitical unrest. Because the cash keeps coming in, you don’t need to sell during these times and can instead use your dividends to keep your bills paid—or maybe even buy the dip in the markets, thereby building your income stream further.

But where can you get reliable income that won’t be hit by the Fed’s moves and other events that are mostly beyond our control?… Read more