There are two ways to get big dividends: you can buy stocks that boast high current yields, or you can buy stocks that consistently grow their payouts.

A well-balanced portfolio will include both types of companies, with dividend-growth stocks being the cornerstone of a longer-term income strategy.

Still, investors sometimes get frustrated with dividend growers because to get their outsized payout growth, you often have to settle for a low current yield. And why buy a risky asset that yields 1% when you can get a long-term Treasury that pays 2%?

There are two answers to this question. The first is that Treasuries aren’t risk-free.… Read more

The classic “Dogs of the Dow” strategy advises buying the 10 highest-yielding Dow Jones Industrial Average stocks, then holding onto them for a year. The idea is that higher yields are a signal of a beaten-up share price – and that because we’re buying a stable blue-chip with a stable customer base, investors will eventually bid the stock back up when the business cycle turns up again.

But we can further improve on this effective yet somewhat “dumb” strategy with a bit of second-level analysis. After all, some of these companies have business models that are actually aging in dog years!… Read more

A few weeks ago we discussed how you can make 12% annually, forever, from stocks. Now let’s apply those lessons to 2017, and highlight five that should do even better (17%+ returns) this year (and likely beyond).

Remember, projecting our returns from any given stock is simple. We simply add together the three ways it can pay us:

1. Its current dividend.
2. A future dividend hike.
3. Share repurchases.

It also helps if the stock is inexpensive, as buybacks deliver more bang for management’s buck. So let’s stick with stocks that are dirt-cheap, trading for 10-times free cash flow (FCF) or less for this exercise.… Read more

We all know financial stocks have gone through the roof since President Trump’s win. So the question becomes: what do we do with these companies now?

There’s no one answer for every financial stock, of course. Some are still great, undervalued buys—but there are two that have gotten grossly overvalued and should be avoided, or sold if you hold them. (Below, I’ll reveal 2 better high-yield stocks to buy instead.)

These 2 Financials Are Headed for Trouble

Bank of America (BAC) is the first bank on my hit list.

A Breathtaking Rise

After spending most of 2016 in the red, BAC has soared more than 37% in three months.… Read more

Instead of meticulously picking one high paying stock after another – in hopes of building a secure dividend stream – how about simply buying a fund or two that does everything for you?

After all, you’ve already made the correct asset allocation in choosing dividend stocks – which outperform non-payers by a wide margin. There are money managers who can perform quite well with this mandate.

Some of them run “multi-asset” funds, which don’t get much press. That’s too bad, because the best yield 6% or more and focus on cash-generating assets such as real estate investment trusts (REITs), master limited partnerships (MLPs) and junk bonds.… Read more

Real estate investment trusts (REITs) just don’t get the respect they deserve. And that’s too bad, because owning just a handful can make a huge difference in your investment returns.

I’ll reveal four of my favorite REIT buys now in just a moment.

First, let me explain why I’m pounding the table on the sector today.

The main reason: REITs often pay dividend yields far above your average S&P 500 stock. What’s more, they’re obligated to pay out 90% of their taxable income as dividends, which forces management to take a disciplined approach to growth.

In addition, REITs give you a very liquid way to invest in physical assets; your shares represent a part of the actual buildings the trust owns.… Read more

Analysts are divided by whether they think this hard-charging bull market can last through the rest of 2017, but most market watchers agree on one thing: It’s going to be a bumpy ride no matter what. That’s why today, I’m going to show you a trio of funds that are designed to fend off volatility … and deliver high income to boot!

Within just a few days, President Donald Trump has signed a slew of executive orders and presidential memoranda with wide-reaching missions – withdrawing from the Trans Pacific Partnership, freezing federal workforce hiring and, of course, starting to roll the “border wall” rock down the hill.… Read more

Many people think a conservative, disciplined approach to retirement will help you reach your financial goals. They’re wrong.

If you invest too conservatively, you’ll never retire. At the same time, if you educate yourself about the financial options out there and invest accordingly, you can retire much, much earlier.

Let’s take a look at the math.

Higher Returns, Earlier Financial Freedom

In the chart above, I’ve broken down how much money you need according to how much you spend per month and what rate of return you get on your investments.

At one extreme, if you spend $1,500 per month and get a 9% annual rate of return, you need just $200,000 to retire.… Read more