A couple weeks ago, I showed you how to zero in on something every investor longs for: growth at a reasonable price.

These days, it’s a tall order. With the S&P 500 back near breakeven after this winter’s flame-out, valuations are again ticking higher.

But no matter where the broader market’s headed, there are always top-quality dividend payers on sale. The key is to comb through unloved sectors and tease out strong businesses that have been tossed out with the laggards.

Here are two examples of companies investors have (unfairly) punished. Their stocks won’t be long in detention, however—these businesses are too good, with management teams that are too shareholder friendly, to stay down for much longer.… Read more

This aging bull market in U.S. stocks turned seven last month. It’s a bit expensive and past its prime for my liking. But another “niche bull run” is kicking off right now. And no matter what happens with the broader market, these issues – and their dividends – will roll higher for decades.

There are 77 million Baby Boomers that make up 28% of the U.S. population. Any companies that make products they buy are usually doing great. This massive generation made baby products makers rich in the 1950s, and homebuilders rich in the 1990s and 2000s.

Now, they’re transitioning their spending again.… Read more

The Federal Reserve’s slowing approach to rate hikes is a big positive for firms that practice financial wizardry. Fed Chair Janet Yellen told The Economic Club of New York earlier this week that she considered it “appropriate for the Committee to proceed cautiously in adjusting policy.”

Translation – they’re going to keep moving slowly. Inflation isn’t yet in the picture, and until it is, the Fed can keep rates low for longer than most think. And that’s bullish for business development companies, or BDCs.

BDCs invest mostly in privately-held small to middle market companies ($10 million to $1 billion in revenues).… Read more

Legendary investor Peter Lynch was fond of saying that corporate insiders may sell their company’s shares for a variety of reasons. But there’s only one reason they buy – and that’s because they think the price is going up.

Anyone at the director-level or above in Corporate America is considered an “insider” – and it’s perfectly legal for them to buy their own company’s stock. That’s a good sign in general, and especially for the stocks that we’re interested in. It means the executive buyer is bullish on dividend growth, and as we’ve discussed before, payout growth is what ultimately sends stock prices higher.… Read more

A few months back, I ranked my five favorite dividend ETFs – and shared my top pick to buy and hold forever. Since then, three new ETFs have launched that address the main problem I had with the strategies I reviewed the first time around.

The result? A 585% return over a 15-year period!

I’ll share the specifics and tickers – and my discussion with their portfolio manager – in a minute. But first, let me give you some background on dividend ETFs so you’ll appreciate why these new strategies are superior.

Sadly, Most Dividend ETFs are Dogs

Dividend-focused strategies should outperform the market over the long haul.… Read more

Billionaire investor George Soros said it best: “Good investing is boring.”

Two great examples: dividend reinvestment plans (DRIPs)—an automatic way of building wealth that most investors ignore—and the S&P 500 Dividend Aristocrats.

Let’s take the second one first. Many of the 50 companies on the Dividend Aristocrats list peddle everyday staples like tape, telephone service and over-the-counter drugs—products that are about as humdrum as you’ll find.

These are household names like Colgate-Palmolive (CL), Kimberley-Clark (KMB), and Clorox (CLX). (I’ll give you the names of my three favorite Dividend Aristocrats in a minute.)

But these companies have a big edge over the flashy wearable tech and biotech stocks investors usually go gaga for: they pay steady dividends.… Read more