The 4 Newest Dividend Aristocrats

Brett Owens, Chief Investment Strategist
Updated: April 11, 2016

A couple of weeks ago, I discussed the value of investing in the S&P 500 Dividend Aristocrats, the 50 companies in the index that have hiked their dividends for at least 25 consecutive years.

It boils down to performance: in the last decade, this vaunted group has returned an average of 10.3% a year (including dividends), compared to just 6.3% for the S&P 500 as a whole.

Dividend-Historical-Performance

It’s also a list that doesn’t change much. Last year, there was just one adjustment, and it was a removal, after Family Dollar Stores was taken over by Dollar Tree (DLTR).

But in the next 14 months, four companies will punch their tickets to this elite club. Should you invest in them? …
Read more

2 Forgotten Dividend Growers Ready to Rally

Brett Owens, Chief Investment Strategist
Updated: April 8, 2016

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.

JPMorgan Chase: Profit Alongside the CEO

If you read my …
Read more

5 Dividends Starting a Multi-Decade Bull Market

Brett Owens, Chief Investment Strategist
Updated: April 6, 2016

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. There are 10,000 boomers hitting retirement age every day. Over the past two years, more than 3 million each year have turned 65. …
Read more

Your Instant 5-Stock Dividend-Growth Portfolio

Brett Owens, Chief Investment Strategist
Updated: April 4, 2016

Looking for an easy way to boost your portfolio’s long-term returns? Here’s one: buy and hold top-quality dividend stocks—especially those that raise their payouts every single year.

Analysis from Ned Davis Research backs that up: from 1974 through 2014, non-dividend-payers eked out just a 2.6% average annual return. That’s barely enough to stay ahead of inflation!

Dividend-payers returned 7.7%, which isn’t bad—but why settle for that when you could’ve held stocks that regularly hike their payouts and pocketed a tidy 10.1% a year, on average?

5 Growing Payouts That Go Great Together

Here’s a five-stock portfolio packed with some of my favorite dividend growers now. Each one hails from a different sector: technology, utilities, railroads, finance and telecom. (I’ll also give you a bonus healthcare pick a little further on. …
Read more

3 High Yield Stocks at Big Discounts to Book

Brett Owens, Chief Investment Strategist
Updated: April 1, 2016

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). They operate similar to private equity companies, and by rule, they’re required to pay out at least 90% of their income to shareholders.

Rising interest rates had the potential to stop the BDC party. …
Read more

7 Big Dividends Insiders Are Buying

Brett Owens, Chief Investment Strategist
Updated: March 30, 2016

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.

Executive teams from two of our Contrarian Income Report companies are, right now, using personal money to buy up their own cheap stocks and big dividends. …
Read more

The 2 Best Dividend Stocks For Your Retirement Portfolio

Brett Owens, Chief Investment Strategist
Updated: March 28, 2016

Investors, spooked by the massacre of 2008 and the market’s latest gyrations, are making the same mistake again. They’re running scared into so-called “safe” fixed-income investments like CDs and treasuries—and ignoring stocks altogether.

A recent survey by Franklin Templeton found that 37% of long-term investors thought they’d be just fine leaving stocks out of their retirement portfolios. For investors in their 20s and 30s, that number jumps to 56%.

That’s a big mistake—unless these folks are incredibly wealthy, they’re not going to be able to enjoy retirement in financial comfort. If your nest egg doesn’t have a big allocation to equities, read on and I’ll break down the best dividend stocks for you to consider today.

Because You Need to Beat Inflation

Sure, fixed-income investments …
Read more

Beat Wall Street With These 6 Dividend Payers

Brett Owens, Chief Investment Strategist
Updated: March 25, 2016

As we approach tax time, many investors open their brokerages statements for the first time in a year. Those that “outsourced” their investing decisions to fund managers are often disappointed. On the whole, these vehicles tend to underperform the broader market.

Of course there are exceptions. For example, the Vanguard High Dividend Yield ETF (VYM) has outperformed the S&P 500 over the past five years (83.4% cumulatively versus 81.6%). It pays a 3.4% yield today, which is certainly better than the S&P’s paltry 2.1% payout.

But VYM can leave you holding an unexpected tax bill this time of year. Even if you didn’t sell your shares of the fund in 2015, its realized gains can be passed onto you. The IRS doesn’t care if you yourself sold shares in the fund – it watches to see if the portfolio managers sold their holdings for profits during the year. …
Read more

A New Dividend ETF With 585% Upside

Brett Owens, Chief Investment Strategist
Updated: March 23, 2016

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. I showed you why last week, with a simple investing formula that nets 10% annual returns …
Read more

3 Vice Stocks With High Dividends And 20% Upside

Brett Owens, Chief Investment Strategist
Updated: March 22, 2016

Vice pays if you’re an investor. You’ll earn higher yields and returns investing in booze, tobacco, firearms, and gambling than you will in feel-good stories like clean energy.

“First-level” investors tend to avoid these types of stocks. As a result, they’re often cheap.

For example, you may think smoking is a fading habit. But even today, one in six Americans still smoke. Despite the warning labels, the public campaigns, and a concerted effort to ban smoking in most public places, some folks still just want a cigarette.

And since smokers are going to keep smoking, we should consider the perennial dividend growers who profit from the sustainability of cigarettes. Here are my three favorites…

Three Rising Dividend Yields From Cigarettes

Philip Morris International Inc. (PM) sells a range of tobacco, nicotine and cigarettes globally. …
Read more