Are you relying on this casino for your retirement income?

The S&P 500, after two major heart palpitations, sits 1.2% lower than it did this time last year. That’s a tough roller coaster to ride if you actually need the money you invest in stocks! Plus, the index only pays a 2.1% yield due to its elevated price levels. That’s not very much income.

Then again you probably know this already. And perhaps you’ve attempted to stabilize your retirement ship by investing only in America’s best blue chip stocks. That’s definitely preferable to the broader market, but do me a favor and check out the following two charts.… Read more

A couple weeks ago, I showed you a 4-stock dividend portfolio that’s throwing off a gaudy 7.3% yield today.

It’s ideal if you’re retired and leaning on your investments to pay the bills. But if you’re looking to grow your nest egg, your best bet is to reinvest your dividends and harness the magic of compounding.

Today I’ve got three stocks for you that are perfect for doing just that.

But first, I’d say the name of the game here isn’t necessarily a high current yield; instead, you’ll want to home in on stocks that boost their payouts year in and year out.… Read more

If you live in America, you can get tax-free dividends over 5% by investing in incredibly low risk bond funds. And I’m going to show you how to do it today.

You probably know that tax-free is a big deal. If you’re in a 25% tax bracket, a 5% tax-free yield equates to a 7.4% taxable yield. In the top 43.4% bracket? You’re banking a payout above 9%.

How is this possible? Simple—with municipal bonds. “Munis” have been a long-term favorite of retirees because of their tax-exempt status and low default rates, but now is a better time than ever to jump into the market.… Read more

Want to be Target’s (TGT) landlord? You’ll earn more collecting rent from the retailer than you would if you bought shares in the company directly.

How? By investing in the companies that lease space to big box retailers and profit as retail continues its “stealth” recovery. And contrary to what you read in the mainstream press, retail is doing well. Last quarter, the Census Bureau reported that retail sales were up 8% year-over-year in a quarter when GDP grew just 0.5%.

Picking winners and losers in the retail world is challenging. How do we know if Walmart (WMT) will beat out Costco (COST)?… Read more

Four months ago, I wrote to you that the stock market was about to rally. Why? Individual and professional investors were both terrified – a great sign for us who relish running against the herd.

Since then the S&P 500 has rallied 12.2%, while the three dividend stocks I mentioned rallied 18.2%, 29.2%, and 42%! Once again, it paid to think contrary…

The “Surprise” Spring Rally We Called on February 10th

Have stocks run too far too fast? The broader market is once again within spitting distance of its all time highs. Plus, investors have to be bullish now… right?… Read more

REITs (real estate investment trusts) are finally starting to get the respect they deserve. As a result, a cool $100 billion is gearing up to chase these soon-to-be-hot issues!

Since its 2004 inception, the Vanguard REIT Index ETF (VNQ) crushed the broader market – returning 192% including dividends versus just 89% for the S&P 500. The market gods have finally taken note.This September, Standard & Poor’s will give REITs their very own sector for the first time.

Which means NOW is the best time to buy them, because before it’s official, large funds will be shoveling cash into REITs as they attempt to “front run” the index as they always do.… Read more

It was fun while it lasted.

I’m talking about the brief buying opportunity last winter, when the S&P 500 plunged 10% in the first six weeks of 2016.

On February 10, the day before the market hit its midwinter trough, I bet that it was ready for a turnaround, as the number of bearish option bets had hit a 10-year high—a clear contrarian indicator.

I then gave you the names of three stocks to buy straightaway. As if on cue, all three went on to clobber the index’s subsequent 13.3% rise: Ventas Inc. (VTR) exploded for a 33% gain, while HCP Inc.… Read more

Business development corporations (BDCs) are a great addition to a high-yield portfolio. With yields over 8%, and sometimes even over 10%, these companies provide a strong income stream right now, and can bolster the overall yield of your portfolio.

But BDCs can be dangerous. Because they are legally required to return 90% of their income to shareholders, and because they regularly issue a lot of new shares to expand operations, capital gains are rare in these asset classes and dividend cuts are common. BDC investors need to carefully track how companies’ net investment income (NII) is trending, because they use NII to fund payouts.… Read more