Dirt-Cheap Dividends: 5 Payouts Yielding 4%-11%

Brett Owens, Chief Investment Strategist
Updated: May 21, 2022

Thanks to the market’s selloff, we finally have some dividend deals out there. In a moment, I’ll highlight a five-pack of sweet-paying dividend stocks (as in, 4.0% to 11.3% yields) that are cheap cash cows.

It’s important that we focus on value, cash flow and yield as we cherry pick the bargain bin. More pain is likely ahead for the broader markets.

Stocks have been a dumpster fire in 2022 because the Federal Reserve is turning off its money printer. The Fed’s balance sheet growth is flattening (already a problem for equities) and will shrink soon:

Fed “Taper” Big Problem for Stocks

Meanwhile, Russia’s war machine and China’s latest COVID fight have made an even bigger mess of global supply chains, further fueling already white-hot prices.… Read more

Dump This Dividend Favorite and Buy This Chemicals King Instead

Jeff Reeves, Senior Investment Analyst
Updated: May 20, 2022

Nobody’s perfect. And in 2022, it’s particularly hard to pretend that you never make a losing trade as the market has been incredibly volatile through no fault of our own.

That said, there’s the old saying that the definition of insanity is doing something over and over but expecting different results. So if you have a habit of making bad trades, maybe the bigger problem isn’t the stock market… but your strategy.

One particularly risky strategy that I see some income investors cling to is the notion of placing a priority on yield above everything else. And like Captain Renault, these investors always seem to be shocked – shocked!… Read more

Forget the Crypto Casino: Do This for Double-Digit Dividends (Paid Monthly)

Michael Foster, Investment Strategist
Updated: May 19, 2022

Here at Contrarian Outlook, we’ve been talking a lot about crypto lately—but not in the way you might think.

We’re not buyers—far from it! Instead, we’re using a savvy, dividend-focused strategy to set ourselves up for some nice gains (and dividend payouts!) as gamblers flee crypto and speculative tech stocks. (I’ll spotlight two closed-end funds that are aligned to scoop up our “crypto refugees” while handing us dividends yielding up to 11% in just a moment.)

I’m reminded of crypto right now because many of these “coins” have fallen hard recently—and last week, we got word of one that went essentially to zero!… Read more

Bull or Bear, This Dividend Stock Doesn’t Care

Brett Owens, Chief Investment Strategist
Updated: May 18, 2022

I remain a big fan of cash right now.

I know, I know. I’m not supposed to say this in a stock-focused column like this.

“But Brett,” I can hear the rebuttal. “We’ve been smartly selling the rips. My cash is burning a hole in my pocket.”

“And I’m here for the income. Shouldn’t I buy something?”

Not yet. We contrarians shouldn’t be in a hurry to time the bottom of the market.

There will be free and fast money on the other side of this bearish storm. Every correction eventually ends. For now, we buy lightly. And enjoy our comfortable seat.… Read more

These 2 “Battleship” Dividends Love Inflation (and Yield Up to 5.5%)

Brett Owens, Chief Investment Strategist
Updated: May 17, 2022

These days, we contrarian income seekers are following a simple rule: “trade lightly.” Truth is, we saw this mess coming. It’s why we started lightening up our positions in my Contrarian Income Report service back in November.

In so doing, we’ve locked in some very nice returns, like 90% on chemical maker Chemours Co (CC); 44% on blue-chip-focused closed-end fund (CEF) Gabelli Dividend Trust (GDV); and 98% on the PIMCO Dynamic Income Fund (PDI—formerly PCI).

We didn’t sell any of these dividend payers because something was wrong with them—far from it!

They’d simply ridden Jay Powell’s cheap-money wave as far as they could.… Read more

How to Keep Your Cool, Collect 8%+ Dividends, as This Pullback Grinds On

Michael Foster, Investment Strategist
Updated: May 16, 2022

With all the panic over the headlines these days, it’s a good time for us contrarians to step back and take stock—because there are high-yield bargains out there that can help us navigate this mess.

(Hint: the best hunting ground for us contrarians today is in a group of roughly 500 funds called closed-end funds, or CEFs, many of which pay 8%+ yields and trade at ridiculous discounts. More on them, and a 9.9%-paying fund that might be a good fit for you if you’re investing for the long term, in a moment.)

First, if you’re feeling nervous about your portfolio, let’s step back a bit.… Read more

5 Discounted Monthly Dividends Paying up to 11.4%

Brett Owens, Chief Investment Strategist
Updated: May 14, 2022

Every legendary investor worth their salt has some sort of phrase to describe what investors should be doing right this very minute.

“Be fearful when others are greedy, be greedy when others are fearful.”

“Buy when there’s blood in the streets.”

Largely speaking, most stocks on the market are on sale to some extent. And sure, we could go out and make a few targeted bets on these bargains.

But I’d prefer to squeeze even more value out of the stock market.

Enter closed-end funds (CEFs).

Why CEFs Are Our Best Option Now

If we were to go out and buy an exchange-traded fund (ETF) that invests in, say, the Nasdaq Composite or Russell 2000, or really any area of the market you felt was underpriced, you’d be able to enjoy in the collective discounts of all their holdings.… Read more

‘Think Different’ about Tech and Snag This 10% Yielder

Jeff Reeves, Senior Investment Analyst
Updated: May 13, 2022

A popular adage in the investing world is “Wall Street hates uncertainty.” Unfortunately, many investors have been living in a world of surprises and uncertainty for all of 2022.

Some of that is beyond their control, including volatility caused by Russia’s aggression in Ukraine. However, a lot of the challenges we face in 2022 are by no means unexpected.

You simply had to be paying attention.

In talking with family and friends, I’ve found that one of the biggest risk areas that gets overlooked in their personal portfolios is an over reliance on Big Tech. This is a particularly important topic right now, with the Nasdaq down about 15% in the last 30 days as megacap technology companies have cratered.… Read more

Homes Are Peaking, Stocks Are Bottoming. It’s Time to Grab This 9.9% Dividend

Michael Foster, Investment Strategist
Updated: May 12, 2022

This wild economy has set us up with an opportunity to smartly “time” both the real estate and stock markets—and grab ourselves a hefty 9.9% dividend along the way.

I’ll show you a ticker we can use to do it in a moment. But first, let’s talk about the stock/real estate “two step” I’m proposing—starting with the state of play in the housing market, which has changed a lot in the last few weeks.

House Prices Look to Be Peaking

It comes as a surprise to no one that house prices are on a tear these days, hitting an average of $500,000, according to the latest numbers:

When most Americans buy their primary residence, they aren’t primarily focused on the sticker price; their monthly mortgage cost is what they’re really looking at.… Read more

This 9.2% Dividend is Practically Crash-Proof (and It Likes Inflation)

Brett Owens, Chief Investment Strategist
Updated: May 11, 2022

The stock market keeps falling and falling because, for the first time in 14 years, there is nobody there to catch it.

The “Fed put” has expired.

The genesis of the Federal Reserve’s implicit put—the notion that the Fed will fix any decline—was the 2008 Financial Crisis. The financial system was on the ropes and the stock market itself became “too big to fail” as far as the Fed was concerned. Then-Chairman Ben Bernanke printed a bunch of money, boosted the market and was heralded a financial hero.

Since then, the Fed has been reluctant to let the stock market drop.… Read more