How To Buy “Accelerating” Dividends for 100% Upside

Brett Owens, Chief Investment Strategist
Updated: July 13, 2016

If you think dividend stocks are about to soar, wait until you see what happens with the select subset that is actually accelerating its payouts.

Low rates for longer means net present value calculations look great for stocks that pay meaningful yields. And those that are boosting their dividends at an increasing rate are basically breaking Wall Street’s spreadsheets.

Take CoreSite (COR), a developer and landlord for data centers that we first discussed in March. The company had recently increased its payout by 26%, an acceleration over last year’s “mere” 20% boost:

COR-Div-Growth

Investors who bought CoreSite the day it declared the latest increase are sitting on 54.9% gains in just over seven months.…
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These 4 Stocks Can Save You From the Next Market Crash

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

Is the next market brushfire right around the corner? And are investors in denial about it?

If recent moves in the CBOE Volatility Index (VIX) are any indication, the answer to both questions could be yes.

The market’s so-called “fear indicator” plunged 40% in the week following the Brexit vote—its largest-ever drop—as options traders bet the worst is behind us. The VIX has moved back up only slightly since.

VIX-Brexit-Chart

But don’t break out the bubbly yet. Because if anything, this sudden outbreak of investor contentment—and the disappointment that’s sure to follow—sets the stage for more, not less, volatility to come.

The yield on the 10-year Treasury is the canary in the coal mine.…
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Miss the Brexit Bounce? 3 Stocks With 50% More Upside

Brett Owens, Chief Investment Strategist
Updated: July 9, 2016

Did you miss the Brexit bounce? Sure, much of the easy money has been made – but not all of it.

Stocks headquartered in the U.K continue to languish. Some deservedly so, but there are a few fantastic companies trading at big discounts to their usual market prices.

As we saw last week, fortune favors the bold (and the quick). Here are three stocks in three sectors set to rally strongly from Brexit weakness for the bold investor.

British Banks Are Cheap

The Royal Bank of Scotland (RBS) is no stranger to wild swings, even though it happens to be the fourth largest U.K.…
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2 High Yield Utility Stocks to Buy and 2 to Sell Now

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

Utilities are on fire. As boring as they may be, stocks in this sector have been climbing higher and higher in 2016, thanks to one major trend: investors are desperate for yield, but they don’t want risk.

With many high yielding assets coming with high risk, investors are looking for safety, and utilities are seen as a safe alternative. As U.S. Treasuries hit historical lows and corporate bond yields slide further, utilities become a huge attraction.

It’s no wonder, then, that the Utilities Select Sector SPDR Fund (XLU) is up 20% over the past year, with virtually all of those gains coming in the last six months.…
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Get a Private Equity Edge with 13.7% Yields

Brett Owens, Chief Investment Strategist
Updated: July 7, 2016

Contrary to popular belief, you don’t have to be a multi-millionaire to invest in private equity. In fact, if you have as little as $10 available in a brokerage account, you can do it.

This is especially important nowadays, because the stock market just isn’t cutting it anymore. Let’s face it: 2016 has not been that great for stocks. As we pass the halfway mark for the year, the S&P 500 is up 3%, meaning you’re looking at a 6% gain by the end of the year if the trend continues. For sure, that’s better than Treasuries, but it’s still not that great on a risk-adjusted basis.…
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5 Dividend Stocks With 3% Yields and 335% Upside

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

Since the salad days for stocks ended with the 2008 financial crisis, the new normal has been slower than average economic growth coupled with friendly (low) interest rates.

The financial world hasn’t returned to, well, normal due to some setbacks (Brexit most recently) and more headwinds (too much debt and bad demographics in developed economies). Post-Brexit, the “smart money” is now wagering that interest rates are all-but-certain to stay low for longer (til 2018, at least).

In a world where growth and yield remain scarce, assets that provide one or the other will be in hot demand. And how about stocks that provide both?…
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How I’m Getting 8.5% Yield From a 4-Fund Tech Portfolio

Brett Owens, Chief Investment Strategist
Updated: July 5, 2016

Dividend growth investors today are lucky to get 3% from their large cap stocks while tech investors endure painful volatility without any short-term reward. But I know how to get the best of both worlds with a 4-fund tech portfolio that generates 8.5% income. Best of all, you can collect these yields while you wait for these companies’ massive growth to drop through to their bottom line into shareholders’ pockets.

How? Simple: covered calls. Well, not so simple—call options are a complicated strategy that, if used without care and guidance, can turn a portfolio into a big loser. So we must create a portfolio that we can trust while selling options that won’t get assigned.…
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The 3 Best Dividend-Growth Stocks to Buy for the Next 6 Months

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

We’ve hit the midpoint of 2016, which makes it a great time to review your portfolio and shop for some top-notch dividend-growth stocks as we head into the back half of 2016.

In a moment, I’ll give you three of my favorites to buy now.

The good news? With the market up just 2.4% so far this year, buying now means you probably won’t pay much more than you would have back in January.

SP500-2016-Chart

As I’m sure you’ll recall, the S&P 500’s nosedive started before we’d even put the New Year’s confetti away. By mid-February, it had shed 11% of its value.…
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4 Brexit Bargains With Big Dividends

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

Right now, the market only cares about one thing: Brexit. The market is volatile—which means now is a time to buy, buy and buy more as fears drive stocks too cheap.

But the simple fact is no one knows exactly how Brexit will impact the world’s various economies. For sure, there’s a consensus that Britain will take a hit—how big of a hit, though, is uncertain. And then there’s fear that political instability will impact Europe. But why should that cause the S&P 500 to lose 5% in just a few days?

Simply put: it shouldn’t.

Which is why I’m getting greedy as the world gets fearful.…
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How To Brexit-Proof Your Portfolio

Brett Owens, Chief Investment Strategist
Updated: June 29, 2016

Britain’s out – should you care? It depends on what’s in your portfolio today.

Here’s a five-point checklist to help you Brexit-proof your nest egg. There’s no shortage of noise floating around about the potential ramifications. Let’s separate the “first-level” headline worries from the second-level realities – and make sure your portfolio is set to thrive regardless of the nonsense coming out of Europe.

Reality #1: Interest Rates Here Aren’t Going Anywhere

Regular readers know I’ve been skeptical of the Fed’s “tough talk” about raising rates ever since it started. Perfectly good high paying issues have been pummeled by their empty threats of sustained hikes, providing contrary-minded income investors like us with excellent buying opportunities.…
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