There’s a way for us dividend investors to tap the news of a COVID-19 vaccine for huge payouts of 10% and up. And we’ll position our portfolios for serious price upside, too.

I know the vaccine news has a bit of a “horse is out of the barn” feel to it. After all, the market and shares of the vaccine’s producer, Pfizer (PFE), have already popped (though the rally has taken a bit of a breather lately). But you’re not too late. With the three investments I’ll show you below, you could grab healthcare dividends much bigger than the 3.9% Pfizer pays now.… Read more

Wall Street can have its casino. We’re going to look past the suits’ “common shares” and instead dial in some steady dividends—up to 10%!—that, for whatever reason, aren’t widely talked about on financial news channels and websites.

We income investors could care less what the S&P 500 or, heaven forbid, glue-sniffing NASDAQ, did in their daily session. When you’ve got “preferred” dividends funding your retirement, we can look down on those who roll the dice with their nest eggs.

These types of preferred-stock funds have a few key advantages:

1. They pay their dividends monthly,
2. They boast generous yields (between 5.4% and 10%, for example), and
3. Their prices don’t drop nearly as much as the S&P or the NASDAQ during market fits.

If there’s one thing you can be sure of in investing, it’s this: alarmists—whether they’re bulls or bears—almost never get it right. And playing the contrarian angle is a great way to grab big gains and 7%+ dividends.

Think back to the days before the election: brokerages were warning of unprecedented volatility following the big day. I heard from some investors who sold most of their holdings right before voters went to the polls, terrified that uncertainty over the results would cause a crash.

Then something weird happened. The election ended, the result was close—and stocks surged.

Close Race = Big Gains

Why did everyone get it wrong?… Read more

Since we last connected last Wednesday, we’ve had a few notable events happen (to say the least!)

First, former vice president Joe Biden became president-elect Joe Biden. Depending on your perspective, this may or may not be a “done deal” as far as you are concerned. That’s fair. However, it is mostly a done deal as far as the prediction markets are concerned.

Leading website PredictIt is giving Biden a 90% chance of winning this never-ending November election. I like PredictIt better than any poll because punters are betting “real money” on the website. Heading into the election, the prediction marketplace correctly foresaw a close election, outperforming any pollster I’m aware of.… Read more

Make no mistake: now is the time to buy dividend stocks. That’s because stocks tend to rally from Election Day to the end of the year—no matter which party wins.

The important thing is that the election, and the uncertainty it brings, is over.

The post-election surge is already on, with the S&P 500 jumping 6% since the market close on November 2. Plus we’ve got a nice seasonal effect working in our favor, as stocks tend to gain from October to May.

A Second Chance to Buy Cheap

But don’t worry—if you haven’t used this opportunity to set yourself up for some strong upside (and growing dividend payouts) you’re not too late.… Read more

I sure hope you didn’t listen to the nervous Nellies who told you to pull your cash out of stocks ahead of the election. Since October 30, the S&P 500 has jumped more than 5%, as of this writing.

And remember tech stocks, the sector everyone seemed to be leaving for dead a few days ago? They’re up nearly 7%, going by the tech benchmark Invesco QQQ Trust (QQQ).

2020 Pulls a Fast One on Panic Sellers (Again!)

This is particularly painful if you’re a dividend investor. If you sold just a few days ago, you’re now forced to buy back in at higher prices—and lower yields!… Read more

Many investors believe that financial markets react to the news. But it’s a bit more nuanced than that. Asset prices move with respect to their expectation of the news, versus the actual events that play out.

It’s a cliché, but true: Markets don’t like uncertainty. As I write, it appears that we will (eventually) have a clear winner to the 2020 election. Social unrest also appears to be less than feared. Plus, the likelihood of Congressional gridlock increases the chances that taxes will not rise.

All-in-all, a “slam dunk” for Mr. and Ms. Market, who went to bed Tuesday night fearing worse.… Read more

Tech has taken a punch in the face this past few weeks—prompting many readers to wonder if it’s time to sell after booking some big gains in the sector this year.

No way. We’re dividend investors first and contrarians second, so we’re going to take the other side of that bet and buy this tech “mini-dip.” We’ll do it with closed-end funds (CEFs) yielding 7% (and more) that also give us a unique “double discount” to hedge any downside we might see in the coming months (this is 2020, after all) and a good shot at outperforming tech and the broader market, too.… Read more

If you woke up this morning and thought to yourself:

“Well, at least that’s over with!”

You’re not alone. Historically speaking, financial markets in the US don’t seem to care which side wins on Election Night (or, in the drawn-out days and weeks that will follow). The important thing for the markets is that the election uncertainty is largely over.

As the political carnival fades into our rearview mirror, we’re left with some dividends that made out better than others. Let’s review these winners and losers now.

Winner: Financial Markets

Since March 2009, the long-term (multi-year) trend of the stock market has been up.… Read more

I sure hope you haven’t listened to the bleating pundits begging us to sell everything ahead of Election Day. These talking heads don’t realize that, historically speaking, cash has already turned to trash.

It’s at times like these—when everyone is panicking and another big selloff seems right around the corner—that fortunes are made. And they’re not made by being out of stocks for the six months when they tend to rally (November 1 to May 1).

I know this sounds strange, but hear me out. Because we’ve got a shot at big gains (and dividends!) setting up our portfolios before E-Day comes and goes.… Read more