5 “Bond Bombed” Dividend Blue Chips to Sell

The Contrary Investing Report

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5 “Bond Bombed” Dividend Blue Chips to Sell

The Federal Reserve’s increased aggression over the past couple of years has finally come home to roost. The yield on the 10-year Treasury recently rocketed above 2.8% – a four-year high – while the 30-year cleared the 3% mark.

That’s bad news for investors in many traditional dividend-paying blue chips.

The 10-year T-note might as well have been a “high-yield” savings account the past few years, offering almost laughable income of less than 1.4% as recently as 2016. That kind of environment gives investors “yield goggles,” making even no-growth stocks look attractive as long as they’re paying out near 3%.

Just look at the performance of the Consumer Staples Select Sector SPDR (XLP) – a collection of companies such as Procter & Gamble (PG) and Coca-Cola (KO) – against the 10-year Treasury rate.…
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My Plan to Grab Big Gains (and Dividends) From the Selloff

So stocks have had their steepest nosedive in seven years, and with the whipsawing market we’ve seen since, you might—might—be entertaining the knee-jerk urge to sell.

I have one word for you: don’t.

I’ll tell you why in a moment.

First, let’s look at why this panic happened, and where things go from here.

“It Means Nothing”

I’ve already fielded calls from worried family members and friends asking about their 401ks. When my mother emailed to ask if the Dow losing 1,100 points in a day was a big problem, I responded with three words:

“It means nothing.”

Of course, for everyday folks counting on stocks and bonds to fund their retirement, seeing a 4.6% drop in a day is horrifying—especially if you remember 2008, when such drops were the beginning of a horrific bear market that ended with a 50% decline in stocks.…
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A Crash-Proof Way to Bank $69,137 This Year

Market gyrations don’t matter when you can generate $69,137 over the next 12 months on a capital base of just $350,000. The secret? Monthly cash flow that adds up to 20% average annual returns regardless of what stocks do.

It’s an income investors’ dream – banking regular payments without having to worry about a pullback for the pricey (and increasingly wobbly) stock market.

“Buy and hope” investors are, understandably, terrified today. They’ve bought their shares – and now all they can do is hope the market regains its footing.

We income investors prefer to calculate rather than gamble. It’s why we demand dividends.…
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2 Stocks Set to Soar 25%+ in 2018 and 3 to Sell Now

Interest rates are soaring—so dividend stocks are yesterday’s news. Right?

Yes and no.

While some double-digit paying dogs should be sold immediately, other dividend growers should be bought today for 25%+ upside in 2018.

The truth is, the 10-year Treasury yield’s recent run to 2.7%, a 13% rise since January 1, has tapped the brakes on the stock-market rally and hit high-yield plays like REITs hard.

10-Year Rises, High-Yielders Wobble

If you hold high-yielders in your portfolio, you likely know what I’m talking about.

So should you be worried? No way.

In fact, now is the time to buy. I’ll show you 2 dividend plays that should be high on your list shortly (including a bargain real estate play with a 5.5% yield and incredible dividend growth).…
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How to Wreck Your Retirement in 2 Buys

In my years in the markets, I’ve seen some dangerous financial products come on the scene, but the two I’m going to show you in a moment might be the most dangerous.

No, I’m not talking about Bitcoin—although cryptocurrencies are pretty risky, since, as I wrote on January 1, most people don’t understand just how big a failure Bitcoin really is.

I’m talking about two new funds that have recently been released by BMO Capital Markets in conjunction with REX Exchange-Traded Funds.

Before I go into just how terrible these two funds are, let’s do a bit of digging into who BMO and REX are.…
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9 Dividends Due for a Raise in March

Dividend growth is the key to retirement because it fends off the effects of inflation. Even amid low inflation of 2% to 3% a year, a stagnant dividend will actually lose 2% to 3% of purchasing power a year. The only way to actually grow your income over time, then, is to invest in companies whose management makes rising dividends a priority.

That’s one reason you should buy stocks before their dividend increases. And we’ll review nine upcoming payout raises in a moment.

But there’s a second reason that’s coming to the fore of late: interest rates.

While the Federal Reserve has tried to put the spurs to interest rates with five bumps to the Fed funds rate since December 2015, bond yields haven’t cooperated much.…
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7% Dividends and Upside (Guaranteed By the Fed!)

Preferred stocks are in the doghouse, and you just might be wondering whether this is the start of a buying opportunity.

Let me put that question to rest: it is.

Today we’re going to look at what’s behind this superb chance to buy, as well as 3 preferred-stock funds to consider: the Flaherty & Crumrine Dynamic Preferred & Income Fund (DFP), Flaherty & Crumrine Preferred Securities Income Fund (FFC) and John Hancock Premium Dividend Fund (PDT).

As you can see, all 3 of these funds are in the dumps.

A Steep Slide Down

But these are great funds, not only because of their sustainable 7% dividend yields and diversified portfolios, but also because this preferred-stock selloff is misguided.…
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3 Steps to 51% Returns in 5 Months with Dividend Payers

Looking for dividend payers with the most price upside? They’re available, even in this pricey market. You just need to follow the free lunch signs…

Five months ago, I told readers to grab the “hurricane dip” in the best reinsurers. My Hidden Yields subscribers specifically were told to buy shares in Validus (VR) on September 15.

Why reinsurance? Why then? And why Validus?

Let’s answer these three questions, because they’re the reason Hidden Yielders woke up to 44% gains last Monday morning (and banked 51% total returns in 5 months).

This “Free Lunch” Was Cashed at Once (for 51% Gains)

(Then I’ll share my top 7 dividend growers with 51% upside by July 4th, too – for those of you who missed our reinsurance party.)

Step 1: Pick a Great Business Model

The first step to successful investing is to buy fantastic businesses.…
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How to Front Run “Dividend Splits” for 123%+ Returns

Most investors are familiar with stock splits, but the real money is made when dividends “split.”

I’m talking about secure triple-digit returns in just 5 years (or less). And you could wind up with two dividend streams instead of one!

I’ve seen this strategy pay off time and time again.

And there’s really only one step: buy a recently spun off dividend-growth stock (or hold on to the “new” company if one of your holdings splits up) and tuck it away. Then watch as one—or both—take off into the stratosphere, cranking up their payouts as they go.

In the next few paragraphs, I’ll show you 2 spinoff stocks that have done just that, handing shareholders a 123% average return since they broke off from their parent companies no more than 5 years ago.…
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Buy This Dip for 8.7% Dividends and Massive Gains in 2018

There’s one income-producing sector you probably hold in your portfolio—and you may be wondering why it’s crashing out this year.

I’m talking about utilities, which are famous for their rock-steady dividends (and predictable dividend hikes). These companies literally power the economy. But if utilities are so important, why are they in the toilet while the rest of the market is on fire?

Investors Loathe Utilities

Before we go further, if you’ve noticed your portfolio’s utility sleeve taking a dive like the one above—or bigger—don’t worry. This dip is a buying opportunity! I’ll give you one option paying a fat 8.7% dividend below.…
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