Better Than Dividends: Do This for 14%+ Yearly Returns in Stocks

The Contrary Investing Report

Investing and Trading News, with a Contrarian, Sarcastic Twist!

Better Than Dividends: Do This for 14%+ Yearly Returns in Stocks

If you’re like me, when you see an outsized dividend yield, you stop for a second and immediately do the mental math. How much would we get back in payouts from, say, a 9.3% payer if we were to invest $10,000? Or $20,000? Or $100,000?

But savvy contrarians we are, we know to push back on this initial reaction and look deeper.

Because (as we contrarians know), those big yields can (and usually are) a danger sign.

Truth is, a rising dividend is only one possible reason for a high payout.

In fact, it’s the least likely one.

More often, a high yield stems from something we want no part of: a plunging share price.… Read more

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Bargain Buys for the Next Oil Gusher (With 7%-9% Yields!)

If you’re as bullish on oil as I am, let’s look past vanilla bean favorites like Exxon Mobil (XOM) and Chevron (CVX). Great companies but a bit pricey, as they only yield 3% to 4%.

We’re better off with diversified energy funds that dish dividends up to 9%. Now we’re talking!

The conditions are right for another push ahead in energy’s crash-‘n’-rally cycle. The Middle East (‘nuff said). The Federal Reserve careening towards a “no landing” scenario. And the People’s Bank of China (PBoC) joining the global money printing party.

It could be high time for Texas tea’s next leg higher.… Read more

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Markets Are About to Get Choppy (This 8% Dividend Is Here for It)

I get it if you’re a bit wary of this latest market rally: We’ve got a volatile (to say the least!) election now days away. And while the Fed says rates are headed lower, there’s still a lingering uncertainty about where, exactly, they’ll land.

While a bit of anxiety is understandable, we do not want to make the same mistake many “vanilla” investors do at times like these: go all into cash.

For one, humans are terrible at predicting the future—remember those warnings of a 100% chance of a recession in 2023?—so safe to say a good number of today’s investment worries are unlikely to come to pass.… Read more

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How a 7% Dividend Yield Became Oversold

I have to laugh when I hear a pundit say that individual investors can’t beat the S&P 500 (and you and I both know this is something we hear quite regularly!).

Truth is, it’s not that hard. Heck, you really only have to choose an ETF from a different sector, like real estate investment trusts (REITs)!

REITs Beat Stocks in the Long Run

As you can see, these “landlords”—shown by the performance of the benchmark SPDR Dow Jones REIT ETF (RWR) in purple above—have easily outpaced the S&P 500 for the 20 years following the ETF’s inception back in 2001.

That outperformance occurred even with the subprime-mortgage crisis (which was obviously real estate focused) and the pandemic selloff (which hit REITs particularly hard, shuttering malls, warehouses and offices across the world).… Read more

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Don’t Be a Dividend Fool – Use This Tool

“If you own dividend-paying stocks, you’d be a fool to not be using Income Calendar,” my man Mark P. from California writes.

Tell ‘em, Mark!

We are devoted to retiring on dividends here at Contrarian Outlook. But a little bit of work in retirement is OK. As income investors, we should be able to project our income.

Note that I said a little bit of work. Not a lot! I am not interested in fiddling with spreadsheets until the end of time, and neither is my man Mark.

If you’re with us, why not hop onboard the Income Calendar train with Mark and me?… Read more

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This “Hidden” 10.3% Dividend Is About to Boom (Thanks, Jay Powell!)

Last week’s oil-price drop has set us up to buy some top-flight energy dividends on the cheap. We’re going to grab one with a “hidden” 10.3% yield in just a moment.

First, this buy window goes well beyond a dip in the price of the goo. Fact is, oil dropped because things calmed (slightly) in the Middle East.

But of course, that can change again, and quickly. The real oil story for us is that the drop (along with a double-digit decline in natural-gas prices since the start of October) is happening as energy demand is set to rise.

So desperate is the need for energy these days that Big Tech is turning to long-shuttered nuclear reactors.… Read more

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Yearly Dividends Up to $68,500 on Just $500K

If there’s anything better than monthly dividends, well, we contrarians don’t want to know about it. Getting paid on the same schedule as our bills (monthly!), makes retirement planning easy.

We still need enough yield, though, to get rid (and stay rid) of our day jobs. Our pile of savings is what it is at this point, so we look to larger dividends to do the heavy lifting for us.

The S&P 500, needless to say, won’t cut it. First, the “SPY” pays quarterly—not often enough! Second, it pays 1.2%—not high enough!

“The Market” Is Paying Just Pennies

Even yield-focused funds’ yields are pretty lame right now.… Read more

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My Latest Take on the US Economy (and a 10% Dividend to Buy Now)

Last year, the White House published a blog post titled “As the US Consumer Goes, So Goes the US Economy.”

No matter what your politics are, I think we can all agree that America’s economy depends on consumers buying things. For us income investors, then, the consumer’s health is a key thing to watch, as it ultimately sets the direction of stocks.

So how healthy is the US consumer today, and can we confidently buy stocks—and better still, high-yielding CEFs like the one we’ll talk about below (current yield: 10%)?

Often, the signals are murky. America is, after all, a big country with a lot of people in it, and some of those people are obviously doing better than others, so it’s tricky to zero in on the overall health of consumers.… Read more

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2 CEFs to Protect Capital and Get Up to 12.1% Yields

Of course, we all love it when the stock market soars like it has. But what if stocks pull back? We’ve already seen three big drops this year, so it’s fair to think another one could be lurking around the corner.

With that in mind, it makes sense to diversify beyond stocks—especially now. There’s a type of closed-end fund (CEF) out there that’s perfect for this: those that hold municipal bonds, which are issued by state and local governments to fund infrastructure projects.

CEFs, as members of my CEF Insider service know, are great buys for income (the average CEF yields around 8% today) and gains: These funds’ discounts to net asset value (NAV, or the value of their underlying portfolios) give us price gains as they narrow.… Read more

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Any Serious Dividend Investor Knows This Answer

If you are a serious dividend investor, then you know the answer to this question:

How much dividend income are you going to make next month?

If you don’t know, then you’re not as dedicated to dividends as you thought. Disappointing, but fixable with Income Calendar.

And please, don’t tell me I’m being hard on you. If that’s the way you feel, then this is the tough love that you need. Your wakeup call for fall.

It’s time to treat your dividend investing like a business. Because it is.

And hey, I get it. We’re rolling towards 2025. Nobody wants to mess with tedious spreadsheets like these anymore.… Read more

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