Dumpster Diving for a Discarded (Yet Safe!) 8% Dividend

The Contrary Investing Report

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

Dumpster Diving for a Discarded (Yet Safe!) 8% Dividend

The Federal Reserve tightened until it broke something: the small banks. Classic Fed!

Meanwhile, here at Contrarian Outlook, we’ve been waiting patiently for a big buying opportunity. Biding our time. So… is this our moment?

Bank runs are textbook “blood in the streets” moments. There’s fear. There’s loathing. This is usually our cue to spring into action.

So, should we contrarians simply “hold our noses” and buy?

Regional bank stocks haven’t been this cheap since the summer of 2020. Sure, Silicon Valley Bank has gone to zero. But many small businesses, mine included, still prefer to bank with the folks down the street.… Read more

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How to Tap the SVB Mess for Big Payouts (up to 8.2%)

There’s a “delayed reaction” dividend play (for tax-free 5% yields) waiting for us in municipal bonds right now—and it’s not going to last.

I know, I know. “Munis” don’t exactly get most folks’ hearts racing. But the fact that this corner of the market tends to lag behind stocks, bonds and the rest is exactly what’s behind our opportunity here.

Plus, we get to buy cheap and get our dividends monthly when we buy our munis through a closed-end fund (CEF). That’s because most muni CEFs pay monthly—including a 5.3% payer called the Nuveen Municipal High Income Opportunity Fund (NMZ), the particulars of which we’ll delve into below.… Read more

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2 “Volatility-Resistant” 7.3%+ Dividends to Buy as the Fed Pivots

If there’s one thing we can be thankful for when it comes to the banking crisis, it’s this: at least it means fewer headlines about Fed rate hikes!

That’s actually a good thing for us, because, as the Fed statement hinted on Wednesday, the Fed is getting set to finally pivot. It’s the moment everyone has been waiting for all along! And it feels like almost no one is paying attention.

But we contrarian dividend investors are. And there are a couple of closed-end funds (CEFs) out there that are well-positioned to profit from the Fed’s quiet shift: the Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) and the Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX), which yield 7.8% and 7.3% respectively.… Read more

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These 3%-5% Bank Yields Are a Steal

Is it time for us contrarians to “buy the dip” in bank stocks?

We’re drowning in big bank-scare headlines. Silicon Valley Bank (SIVB) knuckled under in days, Signature Bank (SBNY) wasn’t too far behind, and across the pond, Credit Suisse (CS) needed a buyout bailout from rival UBS (UBS).

The next bank run, however, won’t be with the big boys. Too big to fail, baby. Here, we’ll find not only government help but also secure yields of up to 5.1%—trading at a discount, no less.

Why the big guys? Well let me show you. Last week, my software firm received this email from one of our vendors:

“Brett, Just wanted to give you our new banking details.

… Read more

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How to Pick Winning CEFs (for 387% Returns, 7%+ Dividends)

Once folks get a taste of closed-end funds (CEFs), they typically rave about one thing: the dividends! Yields of 7% and up are common with CEFs, and they often come your way monthly.

We also love the fact that even though CEFs are a small corner of the market (with only about 500 or so out there), we can build a diversified portfolio with them: there are CEFs that hold US and international stocks, bonds, real estate—even private equity. You name it.

This broad range gets us around a problem most income-seekers face: being forced to stake significant sums in one, or a handful of, stocks just to get big payouts.… Read more

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Fast Trading Profits via Secure Dividend Stocks? You Bet

Federal Reserve Chairman Jay Powell is scared. First, it was UK pension funds. Now, the entire banking system has liquidity issues.

Fourteen years of quantitative easing is a tough habit to break! We are one year into the Fed’s attempt to tighten monetary conditions.

Should we buy bargains? Or sell now and go shopping later?

Fellow contrarians want to know! Our Contrarian Outlook customer service line has been hot. Today, we’ll put on our short-term thinking caps and discuss your dividend trading questions.

Q: Do you see any good buys among the regional banks where the “baby got thrown out with the SVB bathwater?”… Read more

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The SVB Tire Fire Is Serving Us These 6.6%+ Payouts on a Platter

We’re going to ride this Silicon Valley Bank (SIVB) fiasco to big dividend payouts—I’m talking yields up to 12.6%!—and quick upside, too.

I’ll walk you through exactly what we’re going to do below. Then I’ll name two unloved (for now!) dividends we’ll target.

We’re Not Dropping a Quarter Into GameStop II

One thing we’re not going to do is sell anything short—even though, as Bloomberg recently told us, the “shorts” cleaned up on SVB. All in, they pocketed $2 billion as “tech bros’” fav bank froze, then crashed.

We contrarian dividend players tip our hats to these daring degenerates. They rolled the dice and things broke their way.… Read more

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CEF Investors: Doing This Will Jeopardize Your Income (and Portfolio)

We’ve got some superb dividends sitting in front of us in CEFs right now—as I write this, these funds yield an incredible 7.9%, on average!

That’s way more than Treasuries (especially after their yields were pummeled last week). And far more than the 1.3% dribbled out by the typical S&P 500 stock.

Best of all, many CEFs hold the same stocks you likely hold now—including household names like Apple (AAPL) and Microsoft (MSFT). So you likely won’t have to ditch your current holdings to get into these funds.

Those high dividends, as you can likely imagine, get a lot of attention from investors—so much so that some may be tempted to try a technique known as “dividend capture” with CEFs.… Read more

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Why Elizabeth and Brian Believe in Their Own 15.8% Dividend

Insiders may sell their shares for a variety of reasons. Usually, because they need the cash.

But execs who know “what’s up” with their company better than anyone only buy with one purpose in mind.

They believe their stock price is going higher. Or, if it’s a dividend stock, at least it is not going down anytime soon!

We’re going to highlight dividends up to 15.8% (yes, that’s no typo) with recent insider buying. This is especially notable these days because:

  • Vanilla investors are worried this is 2008, Part Deux.
  • Inflation is still running hot.
  • And stocks have been going down for 15 months and counting.

… Read more

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What the Silicon Valley Bank Collapse Means for Our CEFs

The Silicon Valley Bank (SIVB) mess has demonstrated exactly why we need to invest in closed-end funds (CEFs): these funds yield 8.1% on average, giving us an income stream that can get us through market volatility, like we’re seeing now.

In fact, the SIVB failure shows one of the often-underappreciated aspects of CEFs: when you hold a diversified portfolio of these funds, you’re getting exposure to thousands of stocks, bonds, REITs and many other asset classes.

So even if you have an SIVB hidden in there somewhere, it will have little—and likely no—impact on your overall returns. (And subscribers to my CEF Insider service don’t need to worry—none of our funds have exposure to SIVB, and none have exposure to regional banks suffering from the contagion.)… Read more

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