The Safe, Easy Way That Billionaires Turn 2% Yields to 8%

Brett Owens, Chief Investment Strategist
Updated: August 21, 2019

As broke investors worry more and more about a stock market crash, billionaires are quietly loading up on their favorite dividend paying stocks. Investing for growth and income, these “country clubbers” know how to 4X their yields without taking on any additional risk.

Who would you rather invest with? Obviously, the rich guy or gal versus the hopeful retiree sweating out every stock tick.

Wealthy people collect assets that, over time, help them accumulate more and more wealth. Average investors, meanwhile, clutch to their stocks like they are lottery tickets. They buy shares and “hope” that they go up every minute of every day. Their hyper-attention often makes them sell at the worst possible moment (such as the bottom of a pullback).

So, what are the folks who don’t need the money holding today? Kiplinger writer James Brumley recently surveyed the “three comma” net worth crowd. Fifty stocks later, he learned that 62% of the billionaires’ favorite picks paid dividends.

Most of these stocks are better buys now than they were 26 days ago before the broader market began to quake. The “smart money,” which these guys are certainly a part of, was cautious then. They are becoming increasingly greedy now, because they’re able to secure more dividends for their dollar.

Check out the right side of this “smart versus dumb money” confidence chart. During the two recent pullbacks, the smart money (blue line) gained confidence as stock prices (gray line) dropped:


Republished with permission from SentimenTrader.com.

What kinds of stocks do the smart money types buy on pullbacks? Back to Kiplinger’s piece, let’s look at Broadcom (AVGO), a pick from Lyrical Asset Management (a firm running $6.6 billion). New money today gets 10% more payout for the price today (a 3.5% yield) than it did in late July (when Broadcom paid just 3.2%).

A Better Bargain Now

Why are long-term wealth builders focused on Broadcom? It has serious upside potential. Over the last five years, its payout has climbed 728%, and this “dividend magnet” has pulled shares higher by 269%. That’s not bad, but they are actually “due” to catch up to the higher payout.

The same stocks tend to yield the same amount year-after-year, give or take, and the country clubbers like Broadcom’s dividend gap:

Broadcom’s Dividend Magnet is Due

To demonstrate yield consistency, let’s take good ol’ Johnson & Johnson (JNJ), a firm I remember fondly because they were kind enough to extend two engineering internships to your editor in 2001 and 2002. (They were the second-to-last large company I ever worked for!)

Eighteen years ago, the firm’s dividend was rock solid. Fast forward to 2019, and it’s equally revered. The company has grown its dividend every year since the Kennedy administration. As hopeful retirees wonder if they will ever get to retire with rates heading towards zero, JNJ’s steady yield may begin to test its usual range:

While 2.8% is better than most bonds, it isn’t enough to retire on, either. Put $500K in JNJ and you’ll receive just $14,000 per year in dividends. That’s not much for that chunk of capital.

Maybe JNJ has upside like Broadcom? I don’t see it, nor do Kiplinger’s billionaires (who didn’t mention the blue chip). The baby shampoo god’s dividend growth is steady but modest, which means its stock price growth is likely to be equally reliable and humble. And that’s exactly what’s happened over the last five years, with 36% dividend growth pushing 29% price appreciation:

36% Payout Growth Drives 29% Price Growth

As you can see there are really only two ways to make serious money with dividends.

First, buy growth. Of course, I’m not talking about weed, social media or cryptocurrencies. I’m talking about stocks like Broadcom that are doubling their dividends quickly. Find soaring payouts like these and you, too, can double your money (like the country club crowd).

But what if you need income today? Well, even Broadcom isn’t going to cut it. We need to look downfield, to the big yields that the big buyers can’t touch!

Our newest Contrarian Income Report play has a market cap under $4 billion. This puts it below “billionaire-range” because if someone tried to put a billion dollars into this stock they’d move the entire market and own one-third of the company.

But you and I can drop $50K or more into it, no problem. And that will net us more than $5,000 in yearly dividends thanks to this stock’s 10%+ current yield! Or $50K in annual dividends on a relatively modest $500,000! You get the idea.

How? Well, that’s what I’m here to show you today.

After years of keeping it my personal secret, I’m finally revealing my Perfect Income Portfolio. A simple, proven, and time-tested strategy you can use to double, triple, even quadruple your income – almost immediately!

Plus, I’m also going to give you THREE specific investments you can buy right now for MAXIMUM income combined with MAXIMUM stability!

This is a strategy I could easily charge thousands of dollars for.

But today, I’m handing you the keys to the kingdom right here on this page.

All you’ve got to do is take action and implement what you’ve discovered. If you want to take charge of your retirement income, you can easily build a portfolio which returns 10%+ per year—without you EVER having to withdraw from your savings.

Now, compare this to the S&P 500’s 1.9% dividend and we’re talking about a $40,500 difference on a $500,000 portfolio—every single year! That’s the sort of life-changing money that can provide true security and freedom.

Best of all, as you’ll see today, it only takes a few minutes to set up this vastly more profitable portfolio.

When I talk about the Perfect Income Portfolio, I’m speaking about a collection of safe dividend stocks and funds that:

  • Pay you 7%, 8% or more consistently and predictably—even if there’s a crisis, crash, or pullback.
  • Give you a safe, secure, and steady income of $10s of thousands per year in cash—not just ‘paper gains.’
  • Pay out exclusively from your investment income and NOT require you to withdraw cash from your savings or assets.
  • Avoid overly-complex, high-risk investments that can wipe out decades of hard-earned money in a matter of weeks or months!
  • Are simple to set up and simple to manage—so you’re not glued to your screen all day and you can actually enjoy life.
  • Are backed up by a proven track-record of 10% total returns per year since inception.

As I mentioned, this was built from years of painstaking research, trial and error, and financial modelling. I designed it for my own personal portfolio and my desire to enjoy a large income… without exposing myself to too much risk or withdrawing from my savings.

And, in the obsessive pursuit of this goal, I quickly realized traditional income strategies just weren’t going to cut it.

So, instead of listening to the mainstream advice like…

… invest in the Dividend Aristocrats… withdraw 4% per year… lower your expenses… cut back on luxuries…I decided to carve my own path instead.

This journey led me to uncover three little-known investment ‘vehicles’ that can safely and securely 2x, 3x or even 4x your incomealmost immediately.

So, right now, I’m pulling back the curtain and showing you how you can build the Perfect Income Portfolio today. Click here and I’ll show you how to get access to my full research, recommendations and stocks to buy today (including their tickers and buy prices).