This “Dividend Trade of the Decade” Crushes Stocks, Drops 28%+ Payout Hikes

Our Archive

Search completed

This “Dividend Trade of the Decade” Crushes Stocks, Drops 28%+ Payout Hikes

We aren’t falling for this “head fake” oil plunge. Instead we’re buying what I like to call the “Biden barrel discount”— grabbing beaten-down oil stocks with surging dividends!

I’ll drop two tickers primed to ride oil’s next bounce higher in a second. First, though, here’s what I mean by the “Biden barrel discount”:

Sure, oil has pulled back on recession worries, but the US has also been releasing crude from its “emergency” supply, the Strategic Petroleum Reserve (SPR). A cool one-hundred million barrels have been released in the past 12 months.

We’ve been buyers of the energy-price dip because:

  1. The SPR release—or our “Biden barrel discount”—can’t  go on forever.

… Read more

Read More

3 Buys to Beat Inflation (and the Fed!) With 10%+ Dividends

Whether you own a Treasury or the typical dividend stock these days, you’re still losing money after inflation.

I know what you’re thinking: tell me something I don’t know!

But there’s a solution hiding in plain sight: closed-end funds (CEFs), a widely overlooked (and publicly traded) asset class that often throws off rich payouts of 8% or more. We’ll do a deep dive into these scandalously overlooked income plays, and how they pay those big (and often monthly) dividends in a moment.

Here’s the top-line takeaway, though: by going with a CEF, you won’t have to sell the blue chips you own now.… Read more

Read More

The Cheapest Dividend Stocks Paying 5% or More

The market’s reaction to Jay Powell’s “hawkish” Jackson Hole rant was interesting. He spoke for eight minutes. Stocks crashed for the rest of the trading session and have continued lower since.

Funny because I didn’t hear anything new. The mid-summer sucker’s rally was based on the hope that Powell would “pivot” early in 2023 and lower rates again.

He can’t unless the economy is really in the tank by then. Like “deep recession” bad. Otherwise, inflation is going to come back.

Larry Summers compared it to skimping on a doctor’s prescription. If you stop taking your antibiotics too soon, the infection comes back.… Read more

Read More

This Quiet Move From “the Apple of CEFs” Is Set to Hand Us 10.2% Dividends

One of the market’s smartest contrarian players just made a shocking move—and we dividend investors need to pay attention.

The contrarian in question? PIMCO, the company that revolutionized the humble closed-end fund (CEF). If you’re reading this, you’ve likely at least heard of CEFs, which are renowned for big dividend payouts: safe 7%+ yields are the hallmark of these (too) often-overlooked investment vehicles.

If you’ve never heard of PIMCO, all you need to know is that the company is to CEFs what Apple (AAPL) is to tech.

And PIMCO’s latest move is yet another signal that now is a great time to boost our positions in the 18 buy-rated funds in the CEF Insider portfolio.… Read more

Read More

Buy These Stocks for $45,600 Income on $600K

Relax. You might already have enough money to retire on.

My favorite dividend stocks let people retire comfortably on $600,000 or so.

Got more cash? Great! You’re in elite company.

Fidelity Investments—apparently happy to share its customer’s financial info anonymously—says it has more than 750,000 seven-figure 401(k) and IRA accounts.

That sounds like a lot, but it means less than 1% of Americans have $1 million or more saved for retirement. And that’s OK—select dividend stocks can help us retire comfortably on $600,000 or less.

Sure, a chunk of money is great. Especially when we can leave it untouched and let it grow.… Read more

Read More

Our Plan to Ride the “Biden Buyback Tax” to Big Gains (and 1 Ticker to Buy Now)

There’s a group of dividend stocks out there that are set to skyrocket as the new “Biden buyback tax” rolls in.

These “dividend moonshots” are hiding in plain sight. Most people miss them because they’re looking at the wrong numbers: they’re obsessed with “first level” measures like dividend yields, P/E ratios or whatever.

But we second-level thinkers only need one indicator to find these cash machines, which are poised to profit in a surprising way as the new tax takes effect. I’m talking about a potent number called shareholder yield.

This metric isn’t on any screener, so it takes a couple minutes’ legwork to figure out.… Read more

Read More

This 12.7%-Yielder Loves Rising Rates (and It’s Cheap Now)

Usually in a bear market like this, something is working somewhere. But I think you’ll agree that since the beginning of 2022, that “something” has been tough to nail down.

Treasuries are down some 23% on the year. And we know where the stock market has been.

Cash, of course, will always free you from stock- or bond-market volatility. But staying in cash too long leaves you exposed to today’s high inflation. And of course, cash pays zero dividends—and that’s just not an option for those of us looking to fund our retirements on dividends alone. That strategy largely allows you to tune out market volatility, which is why it’s a goal we aim for at my CEF Insider advisory.… Read more

Read More

3 Sleepy Yielders to Soothe Your Bear-Market Boo-Boos

Let’s not be idiots chasing this bear market rally. OK?

Safe dividend stocks, fine. That’s what we’re going to talk about today. A trio of stability and sanity that doesn’t care if we see a September swoon or October keel over.

Yes, in bear markets like these we sell the rips. But we still buy the dips—we just make sure we do it smartly. And keep it low beta.

Duke Energy (DUK), for example, has a 5-year beta of 0.34. This means it moves only 34% as fast as the market.

In other words, on days when the S&P 500 is down 3%, this stock should decline a mere 1.5% or so.… Read more

Read More

Here’s the ONLY Way To Invest in a Leading a 14.9% REIT

Among the many lessons I learned in the aftermath of the 2008 financial crisis, one of the most important was to do my own research. You simply cannot get ahead by chasing whatever tickers are hot on CNBC and Twitter, or by taking the headlines in financial media for granted.

But I must admit, it’s not always comfortable to think like a contrarian and focus on long-term income over a short-term adrenaline rush. It sometimes means sitting on stocks that may seem to “underperform” the high-octane tech stocks everyone’s gushing about. And it sometimes means thinking differently about performance by looking at what’s important to you vs.… Read more

Read More

This 6.6% Dividend Is on a Rare “Discount Sale” (But Not for Long)

There’s a group of dividend payers out there whose businesses are doing better than they were before the COVID mess, but their stocks are still ridiculously cheap today.

Best of all, we contrarian income seekers can get these stocks at an even deeper discount than regular folks can—while collecting a healthy 6.6% dividend.

The trick? Buy them through a closed-end fund (CEF) like the one we’ll discuss below.

But let’s not get ahead of ourselves. The investments we’re going to buy through this CEF are real estate investment trusts (REITs), which own and rent out various types of properties, from shopping malls to warehouses and cellphone towers.… Read more

Read More

Categories