5 Blue Chip Dividends That Are Doomed

Our Archive

Search completed

Even legends can lose their edge. This applies to acclaimed investors and dividend aristocrats alike.

2018 was an explosive news year that will be remembered for many reasons. But one thing that will go under the radar is how this year has been a turning point for numerous old-guard dividend stocks. These companies have been no-brainer holdings in countless retirement portfolios for years – in fact, chances are you hold one if not several of them.

I’m going to highlight five of these revered but poorly aging blue chips in a minute. But first, I want to show you the danger of avoiding warning signs, even in legendary investments.… Read more

Read More

If you want to clobber the stock market – and double your money every two or three years – then buying companies with accelerating dividends is the easiest and safest way to do it.

And I’ve got good news for you: there are nine blue chip payers likely to raise their dividends next month. So why not “front run” this good news and consider these shares now?

The benefit of dividend hikes? Getting a fatter income stream is an obvious reason, but it’s just the start. A rising payout acts like a lever on a company’s share price, prying it higher and higher with every single dividend hike.… Read more

Read More

Moe Ansari, host of the popular Market Wrap radio show and podcast, asked me on air:

“Brett, how do you find dividend paying stocks that will double your money?”

He was intrigued enough by my analysis to ask me on his show, but I knew he was a bit skeptical as well. And that’s perfectly normal – even experienced investors and money managers like Moe think of dividend payers in terms of their current yields only.

Price appreciation potential often gets ignored, and the thought of achieving 100%+ profits from a safe dividend payer sounds absurd. But smart investors bank their payouts while their stocks double in price.…
Read more

Read More

Is it possible to double your money – quickly – buying safe dividend stocks? You bet. Let me explain how…

“Basic” income investors are enamored with higher current yields. These are OK for payouts today, but they’re not going to get us 100%+ gains.

For triple-digit profits we must pay attention to the underrated dividend hike. These raises not only increase the yield on your initial investment, but they trigger stock price increases, too.

For example, if a stock pays a 3% current yield and then hikes its payout by 10%, it’s unlikely that its stock price will stagnate for long.…
Read more

Read More

“Hey Brett, what do you think of telecom?”

“Well, let’s take Verizon (VZ). It pays a 5% dividend. It’s growing that dividend by about 2% or so per year. So I’d expect the stock to return 7% or so in the years ahead,” I replied.

“What about profitability metrics like return on invested capital (ROIC)? Or margins? Or…?” my investor friend rebutted.

“If it doesn’t flow through to a higher dividend, then it doesn’t really matter.”

I was “grilled” with many thoughtful dividend-related questions while speaking to subscribers and fellow income hounds at Denver’s AAII (American Association of Individual Investors) chapter last week.…
Read more

Read More

While most income investors are reaching for big yields right now, a small group of “hidden yield” stocks are quietly handing smart investors growing income streams plus annual returns of 12%, 27.1% and even 54% or more per year.

So if you want to double your money every few years – and double your income as well – then you need to focus on the seven stocks I’m about to share.

Rule #1: Dedicate Some Cash to Dividend Growth

As I wrote in this month’s edition of the Contrarian Income Report, our portfolio pays 7.5% today. And I can even get you 8.3% yields on new money, by focusing on our seven best buys.…
Read more

Read More

Don’t let the pundits deceive you. Despite their endless bleating about an overheated market and an imminent crash, now is a great time to buy.

But you need to look beyond the breathless reporting about the S&P 500’s daily push higher—or its ratchet-tight P/E ratio.

Because the real winning stocks are cloaked behind something most folks don’t pay nearly enough attention to: dividends—particularly dividend growth!

Let me explain.

Dividends Are Great Again

A quietly released report from investment manager Janus Henderson Group (JHG) tells the tale—and it’s a happy one for American investors.

According to Janus, global dividends jumped 5.4% year-over-year in the second quarter.…
Read more

Read More

Here’s a harsh dose of reality: If you ignore dividend growth when you select your income investments, you are actively reducing the quality of your own retirement.

Today, I’m going to show you how you can use dividend growth to reap safe 12% annual returns by looking for just a handful of qualities in a company, but first, I’m going to show you something that should make at least a few of you sick:

You might not recognize it, but this is what losing money looks like.

Investors over the past few years have been gifted one of the mildest environments for inflation in modern history.…
Read more

Read More

Warren Buffett doesn’t just beat the market – he makes a mockery of it. Since Buffett took control of Berkshire Hathaway back in the middle of 1965, the conglomerate has more than doubled the average annual gain of the S&P 500.

But here’s something you won’t hear anywhere else – Buffett doesn’t love all of his stocks equally. In fact, there are three dividend dogs that I bet he’d sell today if he could get away with it.

Let’s look at six of Buffett’s current income plays to separate his three buys from his three sells.

SELL – Verizon Communications (VZ)
Dividend Yield: 5%

Verizon Communications (VZ) is technically in the Buffett boat, but it’s not exactly a high-conviction pick anymore.…
Read more

Read More

About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

Sign up for our Newsletter

Categories