Swimming Upstream: 5 Stout Dividends Yielding Up to 25%

Brett Owens, Chief Investment Strategist
Updated: February 10, 2023

Want to know the secret to retiring on dividends alone?

Keep that capital intact.

We invest to generate income. The more we have, the greater our potential payouts. So, losing principal is the cardinal sin.

We want our dividends. And we want our prices intact, or better. (If they grind higher, we don’t argue!)

Stocks that are going “up” are tough to argue with. I know, I know—as contrarians we want to bargain shop. We can’t help ourselves to find a deal.

Well deals are great, but so is momentum—especially when it comes to dividend stocks, especially in a bear market.… Read more

This Is the Market’s Biggest Risk Now (and This 7.3% Dividend Will Profit)

Michael Foster, Investment Strategist
Updated: February 9, 2023

With the markets off to a hot start so far this year, it’s only natural to think things just might be getting a little toppy.

I get it—and the truth is, this market is not without the risk of a short-term pullback.

Here’s the good news: if this possibility has you worried, there are a few closed-end funds (CEFs) out there that are perfectly designed for this risk. And they’re trading at attractive valuations, while paying big dividends, too. We’ll delve into one particular ticker a little further on. It’s a “goldilocks” fund that yields a steady 7.3% and charts a steady course through any volatility we might hit in the near term.… Read more

Add “X” to Boost QQQ Yield From 0.9% to 8.4%

Brett Owens, Chief Investment Strategist
Updated: February 11, 2023

Get ready, my fellow contrarians—QQQ “amateur season” is approaching! If you watch as much March basketball as I do, you’re about to hear this repeated hundreds of times:

I’m an investor in Invesco QQQ, a fund that gives me access to Nasdaq-100 innovations like volumetric video technology.
Invesco TV ad for its Nasdaq-100 ETF 

This quote, my fellow “March Madness” fans, is from a commercial for Invesco QQQ Trust (QQQ). Within weeks, it will be played nonstop. The ad features flashy camera angles with average investors “dropping knowledge” about the tech stocks they are proud to own via this ETF.… Read more

How This Weird “Dividend Magnet” Drove 252% Gains (and Crushed ETFs)

Brett Owens, Chief Investment Strategist
Updated: February 7, 2023

If I can give you just one piece of advice to start 2023, it’s this: do not trust your dividend income to ETFs!

It’s one of the biggest mistakes I see people make—especially with the market’s gains this year. These first-level players (wrongly!) think that in a rising market, they can buy pretty well anything and be A-OK.

Not so.

In fact, a rising market when you’re most likely to buy low-quality investments, puts your portfolio in danger in the next downturn. Just ask anyone who bought crypto or profitless tech in 2021!

And dividend ETFs are at the very top of our list of assets to avoid, not only now but always.… Read more

Buying This Fund Is Like Buying Apple With a 12.1% Dividend

Michael Foster, Investment Strategist
Updated: February 6, 2023

We’ve seen a big bounce (and 12%+ dividends!) in one particular type of closed-end fund (CEF) this year—and all of my buy indicators suggest this profitable play is still in its early stages.

Specifically, I’m talking about tech-focused CEFs—which we’re getting a nice second chance to buy thanks to last week’s earnings whiffs from the likes of Apple (AAPL) and Alphabet (GOOGL).

Buying a tech CEF is like buying an ETF that focuses on technology, but with two key differences:

  • Big dividends: the CEF we’re going to analyze today yields 12.1%—and it pays dividends monthly, too. You and I know that both of these things are unheard of in the world of “regular” stocks and funds.
Read more

This 11% Dividend Stock Has 11%+ Upside, Too

Brett Owens, Chief Investment Strategist
Updated: February 4, 2023

What’s better than a safe 11% dividend? How about one with 11% upside or more, too!

Oil and gas stocks are in the midst of a multiyear bull market. China is about to reopen, which will reignite energy demand.

Which means the time to buy the dip in the black goo—especially dividend-paying energy stocks—is right now.

Let’s start with that 11% payer which also boasts a unique dividend distribution model.

A Twisted Path to Big Energy Dividends

Pioneer Natural Resources (PXD), a Texas-based oil exploration company that’s a pure player in the enormous Permian Basin, yields 11%.

Eleven percent!… Read more

This REIT Is an MVP That Yields Nearly 3X the Competition

Jeff Reeves, Senior Investment Analyst
Updated: February 3, 2023

It’s a new year, and that means a lot of suggestions for new approaches to investing.

But here at Contrarian Outlook, we’re not interested in change as the illusion of progress. We’re only interested in one thing – long-term investments that allow us to retire worry-free!

So don’t worry, friends… no gimmicks for you today! Just another case-study in our proven investing strategy.

As I have outlined in previous analysis, my go-to income investments are what I like to call “MVP” stocks. Those are companies that have strong Management, an attractive current Valuation for shares, and generous and sustainable Payouts to provide reliable income.… Read more

CEF Return of Capital Explained (Hint: It’s a Benefit, Not a Flaw)

Michael Foster, Investment Strategist
Updated: February 2, 2023

We’ve been getting a number of questions from CEF investors in the last few weeks about return of capital, or ROC.

This is a measure that shows up regularly with CEF dividends—and it makes many folks wonder if their funds are simply handing back the money they’ve invested as part of their payout.

(Note that much of what we’re going to discuss below is tax related. I’m not a licensed tax professional, so I can’t give you tax advice. You should consult a tax professional for details on your own personal situation.)

First, let’s be clear that all CEFs that are publicly traded on US exchanges are actively investing in something, with funds specializing in municipal bonds, real estate, stocks, preferred shares, real estate investment trusts (REITs) and other assets.… Read more

This Fund Pays 13% and We Dumped It. Why?

Brett Owens, Chief Investment Strategist
Updated: February 1, 2023

A few weeks back, bond giant PIMCO trimmed a bunch of payouts from its closed-end funds (CEFs). Which was no bueno for income investors, who buy CEFs solely for their dividends.

We don’t own any PIMCO funds in our premium portfolios currently. But readers, who rightfully recognize me as a PIMCO fanboy, have written in to ask what’s up.

“Any thoughts on PIMCO recent slashing of dividends? Do you think they will also cut PDI’s dividend?”John S 

John, you know me well. Maybe too well! Here’s a live look at my nightstand which boasts a copy of The Bond King: How One Man Made a Market, Built an Empire, and Lost It All.… Read more

Our 3-Part Strategy for 20%+ Dividend Growth in 2023

Brett Owens, Chief Investment Strategist
Updated: January 31, 2023

If 2022 taught us anything, it’s that we need to swing our portfolios away from this:

We’re Fading “Cardiac” Share-Price Action Like This … 

That’s the chart of “America’s ticker”—the SPDR S&P 500 ETF Trust (SPY)—last year. I call SPY “America’s ticker” because it’s by far the most popular way to track the S&P 500.

But its popularity does not translate into safety. Just holding this simple index fund last year meant taking a 20% haircut—with plenty of heart palpitations along the way! That’s why we want to shift our portfolio returns toward the smooth and steady growth of dividends:

… And Toward the Serene Upward Drift of Dividend Growth

That’s more like it!… Read more