9 Beaten-Up Tech Dividends Up to 5.9%

Brett Owens, Chief Investment Strategist
Updated: March 12, 2021

The Nasdaq’s recent quick 11% slip earned the “correction” label. This alarmed many newbie investors who bought technology shares hoping they would keep heading higher.

We careful contrarians, on the other hand, welcome pullbacks like these. Being focused on income, we are now able to go shopping and secure more tech dividends per dollar.

The only “catch” is that we shouldn’t wait long to buy the bargain tech payers. Remember the Nasdaq’s bear market in late 2018? It bottomed out in less than three months.

The tech index sank even farther, much faster, in 2020, sinking 30% in just over a month.… Read more

The 6.9% Dividend With “Baked In” Double-Digit Upside

Michael Foster, Investment Strategist
Updated: March 11, 2021

The chicken littles fretting about inflation are ignoring something: the “bonus” $2.9 trillion that’s primed to ignite stocks—one group of stocks in particular.

The $2.9 trillion isn’t a new stimulus plan (although those seem to roll out daily). It’s the extra savings hoarded by consumers around the world. To put that in context, global GDP is about $89 trillion, so the total saved will amount to 3.3% of extra growth when it’s finally unleashed.

You’d think most economists would have already accounted for this savings glut in their projections. You’d also expect markets to price in this information. But neither is the case.… Read more

No Rate Worries Here, Just Tax-Advantaged Yields Up to 7.8%

Brett Owens, Chief Investment Strategist
Updated: March 10, 2021

Does a rising 10-year Treasury yield mean we should move on from municipal (muni) bonds? We’ll talk muni strategy in a moment. First, let’s pay homage to these tax-efficient payers.

Munis are superior to Treasuries two ways. First, they pay more. Even with the 10-year rate popping above 1.6% earlier this week, we can double or triple our dividends with munis. The iShares National Muni Bond ETF (MUB), for example, yields 2.1%, which is 30%+ better than the still-chintzy T-Bill.

Plus, munis have tax benefits. MUB is an easy-to-buy vehicle with a tax-advantaged payout that is higher than its stated 2.1% yield.… Read more

3 Shunned Stocks With Dividends Growing 206%+

Brett Owens, Chief Investment Strategist
Updated: March 9, 2021

There’s a quiet shift happening in the market, and we’re going to tap it for some big, and growing, dividends, plus serious price upside, too.

Here’s what I mean: after tech ran the show all of last year, fanboy (and -girl) faves like Apple (AAPL), Microsoft (MSFT) and Tesla (TSLA) are cooling off, and other corners of the market are making a play for the lead role.

Big Tech Rolls Over …

Here’s more proof that a big shift is underway: all through last year, the S&P 500 as a whole powered higher. But if your portfolio is properly diversified, you know that this gain was a mirage.… Read more

This 5% Dividend Will Bounce on the Rising-Rate Scare

Michael Foster, Investment Strategist
Updated: March 8, 2021

We’re contrarians first and foremost here at Contrarian Outlook, so when we hear the latest “sure thing” from the mainstream crowd, we get more than a little suspicious.

So it goes with the recent round of selling on the stock markets, which has been driven by the “certainty” that interest rates will skyrocket, and higher rates will crush demand for stocks, especially the tech stocks that have driven the market’s rebound from the March 2020 crash.

Does this view stand up (sneak preview: no)? And what should we contrarians do in response (sneak preview: buy what everyone else is selling—particularly through a group of funds sporting some very impressive dividend yields).… Read more

Should We Buy These Hotel REITs Before Their Dividends Return?

Brett Owens, Chief Investment Strategist
Updated: March 5, 2021

These popular dividends were taken away in 2020. But rumors of a payout comeback are swirling, and the best time to buy these stocks may be right now.

Before America goes on a vacation binge, that is. See, these dividend payers will directly benefit from travelers being rereleased into the wild. We have been homebound for nearly a year now. (Sorry for the reminder!) But brighter days are ahead, and I know that my family is already booking out travel into 2022.

Should we pick up some hotel stocks while we’re online? After all, hotels will naturally benefit from our restlessness, as will their landlords—the real estate investment trusts (REITs) that were tossed aside this time last year.… Read more

These Stimulus-Powered Investments Could Soar 53%+

Michael Foster, Investment Strategist
Updated: March 4, 2021

There’s $2 trillion in cash headed straight into the US economy, and today we’re going to grab a share, both in the form of price gains and dividends.

I’m talking about the latest stimulus plan that’s made its way through the House of Representatives.

While plenty of folks fret over the rise in public debt this $1.9-trillion plan brings—and that’s a real concern—it’s a problem for another day. The cash is needed to get the economy through to the other side of the current crisis.

And pretty well all of this package is set to get spent through direct payouts to people and organizations that will spend it, with the headline item being $1,400 in stimulus checks (or about $1.1 trillion in all) going to taxpayers.… Read more

Floating Rate Bonds: The Retirement Play for 2021?

Brett Owens, Chief Investment Strategist
Updated: March 3, 2021

My friends and I couldn’t have been more excited about our college commencement speaker. Fresh off an electrifying cameo in the 2003 comedy movie Old School, James Carville’s next act was Cornell University.

At 21 years old, we had no idea what Carville actually did for a living. (Answer: Political consultant.) And though he was an engaging and entertaining speaker, I don’t remember a single word the “Ragin’ Cajun” said. Too bad, because he has had some major wisdom to impart.

Ten years earlier, Carville made an observation that is more prescient now than ever. After watching bond investors rebuff President Clinton’s economic stimulus proposals because they demanded a higher interest rate for US Treasuries, Carville coined this gem:

“I used to think that if there was reincarnation, I wanted to come back as a president or the pope or as a .400 baseball hitter.

Read more

This Stock Has a “Hidden” 6.1% Yield (and Rises With Interest Rates)

Brett Owens, Chief Investment Strategist
Updated: March 2, 2021

Today we’re going to bulk up our dividends—and position ourselves for some nice gains—with a group of stocks that pay us four ways as interest rates head skyward:

  1. By paying a dividend;
  2. By growing their dividend;
  3. By repurchasing shares, and;
  4. Through the pure profits they “bank” (hint!) as rates rise.

Let’s take that fourth point first, because as you likely know, the 10-year Treasury rate—which drives rates on everything from mortgages to car loans—is en fuego, having surged from 0.9% to more than 1.5% in less than two months.

Granted, a 1.5% Treasury rate would be considered low pre-pandemic. But now it has us choking on our morning coffee!… Read more

The Ultimate U.S. Recovery Play: 10% Dividends and Upside Ahead

Michael Foster, Investment Strategist
Updated: March 1, 2021

Patriotism is rarely a good guide when making investment decisions, but these days it just might be, as Americans now have a terrific reason to buy US stocks.

That would be a surge in vaccinations that’s put the US ahead of most of the world on the road to recovery, while at the same time, US stocks are lagging behind their global competitors. This is a disconnect contrarians like us can use to position ourselves for some nice gains and big dividends in the months ahead.

US Vaccinations Ramping Up

Source: Bloomberg

Right now, we’re seeing an average of about 2.5 million doses being distributed across the US per day, meaning we could hit the bottom edge of herd immunity in about 50 days.… Read more