This Growing 7.4% Dividend Is on a “Summer Sale.” It Won’t Last

The Contrary Investing Report

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

There’s a clear pattern natural gas prices repeat time and time again. We’re going to pounce on it now—and grab ourselves a growing 7.4% payout as we do.

I’m talking about the “natty’s” $2 price floor. Every time it drops to that level (or below) it takes off. Check it out:

Natural Gas’s $2 “Trampoline Act”

It just goes to prove that the cure for low prices is low prices! To play this pattern, we want to buy after gas bottoms. Now is that time.

Think about it: We’re moving toward winter in North America (where temps are expected to be below those of last year’s “non-winter”).… Read more

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What if I told you I’ve found a way to get $1,000 in dividends every single month—and you only need to invest $146,364 to get it?

There’s more, too, because this $1,000 monthly income stream comes from:

  • Regular stocks: What I’m about to show you is based on stocks you likely hold now. I’m talking blue chips like NVIDIA (NVDA), Microsoft (MSFT) and Walmart (WMT). The key is to buy these stocks through a special vehicle called …

  • A closed-end fund (CEF). These ridiculously overlooked funds hold the same assets as ultra-popular ETFs but yield a lot more—8.2% on average.

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Which dividend is most likely to be hiked?

Usually, the brand-new payout.

Chief Financial Officers are a conservative bunch. A CFO will only agree to pay a dividend if they know they can:

  1. Make the payment comfortably.
  2. Hike the dividend repeatedly for years to come—with said comfort.

The hike part is important because rising dividends drive stock gains. I’m talking about hundreds or even thousands of percentage points in potential gains.

Let’s consider Apple (AAPL) and its inaugural dividend moment. In March 2012, the tech giant initiated a regular dividend of $2.65 per share. The payout was a catalyst for 12 subsequent years of moonshot performance.… Read more

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At my CEF Insider service, we’ve been bullish on corporate bonds (especially corporate bond–focused closed-end funds yielding 8%+) for a long time now.

We remain so, because we’ve got a nice “goldilocks” setup for these funds right now:

  1. The US economy, while not booming at a rate that makes everyone happy, has steadily improved since the pandemic, prompting inflation to slow but remain elevated.
  2. The Federal Reserve, seeing this, is getting set to lower interest rates in late 2024, or possibly at some point next year.

These are both bullish signs for corporate bonds—and the closed-end funds that hold them. I’m sure I don’t have to tell you they were hit hard in 2022, resulting in an array of bargains.… Read more

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Be honest. I won’t be mad, but just admit it.

You’ve got some SPY in your portfolio. So much in fact you’re probably trying to quickly change the subject from the SPDR S&P 500 ETF Trust (SPY).

I’m not mad. (I’m just disappointed—ha!) We refer to SPY as “America’s ticker for a reason.” It is everywhere.

And it’s OK. Really it is. Holding SPY has worked out this year. But we’re now at an inflection point—which is why we are having this conversation.

Only three stocks account for 21% of the S&P 500. Apple (AAPL), Nvidia (NVDA) and Microsoft (MSFT) determine the entire market’s moves!… Read more

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Look, I know pretty well everyone loves ETFs—mainly for the cheap management fees.

But here’s the thing: ETFs—especially dividend-growth ETFs—are almost always a raw deal. You’re better to go with carefully chosen individual stocks instead.

Today I’m going to prove it, with two popular ETFs whose lousy performance is costing investors thousands in lost gains. So we’re going to “swap” these losers for two terrific stocks whose payouts have exploded 379%+ in the last decade.

Their secret? An eye-opening “Dividend Magnet” pattern no one’s talking about (but as you’ll see in a moment, they should be).

Let’s start with the laggards, then move on to the Dividend Magnet—and these two overlooked individual stock buys.… Read more

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This levitating stock market has brought back worries about a crash (and a recession). I know, I know. We’ve been hearing that doomsday forecast for what feels like forever—and nothing of the sort has come to pass.

But a recession will eventually show up. We just don’t know when. In the meantime, stocks could keep drifting higher.

We do not want to miss out on that. But we do want to pay special attention to assets beyond stocks now (and minimize the amount we have sitting in cash, by the way, which is getting eaten up by still-hot inflation).

This is where corporate bonds (many of which are oversold) enter the scene, particularly bond-focused closed-end funds (CEFs), many of which yield well over 8%.… Read more

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With the market at nosebleed valuations, where can we look for value and yield?

Let’s turn to our favorite three-letter acronym. C-E-Fs.

As usual we have a handful of closed-end funds (CEFs) getting no love from Wall Street. This is perfect for us as we’re talking about dividends up to 14% and discounts between 10% and 15%.

In other words, these fat payers are trading for 85 to 90 cents on the dollar. Let’s discuss.

Gabelli Dividend & Income Trust (GDV)
Distribution Rate: 5.8%
Discount to NAV: 15.0%

We begin with Gabelli Dividend & Income Trust (GDV), a top-rate closed-end fund whose management team includes legendary value investor Mario Gabelli.… Read more

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Closed-end funds (CEFs)—our favorite 8%+ yielding investments—have a new (and popular!) fan. And he’s making a big move I see sending CEF prices higher.

Bill Ackman Discovers What We’ve Known for Years

I’m talking about Bill Ackman, one of the best-known activist investors out there. You’ve probably seen the head of Pershing Square Capital Management, a hedge fund with $18.3 billion in assets, in the media. He’s a regular commentator.

Ackman has scored some big wins in his career, such as his 2005 investment in The Wendy’s Co. (WEN). But he’s probably better known for his dramatic misses, like his losing bid to change the board of directors at Target Corp.Read more

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I have a pop payout quiz for you, my contrarian friend. Can you tell me how much dividend income you earned last week?

And if so, can you tell me how much you earned each day?

These details are now available in Income Calendar, the dividend tracking tool that we created in-house here at Contrarian Outlook. IC’s ability to project divvies down to the day tells us that:

  • We collected $1,844.75 last Monday.
  • Another $264.80 in divvies followed on Wednesday.
  • And our holiday week was capped off with $340.55 in income on Friday.

The tool took my newsletter portfolio as input—with tickers and sample share counts—and did the rest of the work.… Read more

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