3 Monthly Dividend Stocks to Buy Now – and 1 to Avoid

Brett Owens, Chief Investment Strategist
Updated: February 13, 2017

Plenty of investors ask me about monthly dividend stocks—and with good reason. After all, who doesn’t like their dividends rolling in when their bills do?

It’s a heck of a lot easier than trying to manage the uneven income stream you get from a portfolio of solely quarterly payers. But convenience isn’t the only reason to like stocks that pay dividends monthly.

Another is that monthly payouts signal a confident management team. Shareholders revere dividends, after all, and if management’s fine with getting them hooked on a monthly cash stream, they must be sure they can keep those checks coming—without any nasty surprises.

We Can Do Better Than the Obvious Choice

In a moment, I’ll reveal three monthly payers that are great buys now.

But before I do, let’s talk about the …
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This 50% Dividend Grower Is Hiding in Plain Sight

Michael Foster, Senior Analyst
Updated: February 10, 2017

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. If you buy a 10-year note and interest rates go up, the value of your Treasury will go down. If you need to sell early for some reason, you’ll lose money. …
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The 2 Best, and 2 Worst, Dow Dividend Stocks Today

Brett Owens, Chief Investment Strategist
Updated: February 8, 2017

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! And they should be avoided.

Today we’re going to discuss four high paying Dow components. Two are compelling buys, while two should be sold immediately (or even shorted). …
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5 Stocks for 17% Returns This Year (& Beyond)

Brett Owens, Chief Investment Strategist
Updated: February 8, 2017

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.

Here’s an example of a stock ready to return 17% or more over the next year. Blue chip refiner Valero (VLO)
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2 Dividend Stocks to Buy – and 2 to Sell Now

Michael Foster, Senior Analyst
Updated: February 8, 2017

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. Nothing much has changed at the bank; it’s just riding a wave of euphoria as investors bet that Trump’s America will mean higher interest rates and fewer regulations, driving up BAC’s earnings. …
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4 Stocks to Buy for Big February Dividend Hikes

Brett Owens, Chief Investment Strategist
Updated: February 6, 2017

Today, I want to talk to you about my favorite strategy for beating the market and building long-term wealth.

If you’ve been reading my regular columns on Forbes and ContrarianOutlook.com, you probably already know what it is: buy dividend growth. (I’ll name 4 individual stocks that should be on your list now in just a moment.)

Because as I’ve written before, stocks that regularly hike their payouts outperform any other kind of company over time. You can give yourself a bigger edge if you invest in companies that surprise the market with bigger-than-expected dividend hikes.

Take Cisco Systems (CSCO), which “accelerated” its quarterly payout last February: after three years of $0.02- and $0.03-a-year increases, Cisco “went big,” boosting its dividend by $0.05, or 23.8%.

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3 Diversified Funds Paying Up To 9.5%

Brett Owens, Chief Investment Strategist
Updated: February 5, 2017

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.

Let’s review three intriguing options today.

Credit Suisse X-Links Multi-Asset High Income ETN (MLTI)
Dividend Yield: 6.1%

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Buy or Sell: 3 Real Estate Plays Paying up to 8.6%

Brett Owens, Chief Investment Strategist
Updated: February 3, 2017

The headlines in the global real estate space are terrifying right now. It’s the kind of negative press you see in just two situations: the throes of a full-blown crash, or near a market top.

This is the latter.

Sure, high-yield opportunities are available – like the three REIT funds yielding 5% to 8.6% that I plan on highlighting for you today. But concern about a planet-wide real estate bubble is well-founded.

The Organisation for Economic Co-operation and Development believes various international markets’ property prices are reaching dangerous heights, and that several countries’ high prices were “not consistent with a stable real estate market,” according Britain’s The Telegraph. The U.K., Sweden and Canada are among the countries seeing property go through the roof.

Much of this has come courtesy of massive international buying by China, which dumped $33 billion into overseas real estate last year. …
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4 Bargain REITs With 5.0% Yields and Big Upside

Michael Foster, Senior Analyst
Updated: February 2, 2017

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.

And many REITs are very diversified—we’re talking ownership of hundreds, even thousands, of buildings across many states. …
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3 Bulletproof Income ETFs for 2017

Brett Owens, Chief Investment Strategist
Updated: February 1, 2017

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. In the meanwhile, he has continued his string of market-moving tweets, and begun meetings with the likes of Detroit automakers …
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