“Crypto Winter” Makes This 28% Dividend Even More Dangerous

The Contrary Investing Report

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

“Crypto Winter” Makes This 28% Dividend Even More Dangerous

We need to talk about this bitcoin plunge.

I know. We’re income investors, so you may be wondering why we need to talk about crypto at all, right?

Two reasons.

First, there are bitcoin-driven income ETFs out there. And I’m concerned this latest drop might convince some people that these funds are a good value now. (Hint: They’re not.)

Second, I’m concerned the cryptocurrency’s latest drop might ward investors off of income-focused closed-end funds (CEFs) that focus on the technology sector as a whole. That would be a mistake. The truth is, bitcoin’s struggles have given us an opening on these high-yield funds.… Read more

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2 REITs with “Mafioso” Economics Yielding Up to 5.2%

Real estate investment trusts (REITs) tend to shine when there is a lid on interest rates. And that rate top is secure, for reasons we’ll review shortly.

Net lease REITs, in particular, are compelling here. They are the boring landlords of the real economy. (Yawn? Love that reaction from vanilla income investors!)

The net lease landlords own the pharmacies down the street, the big-box retailers at the busy intersections, and the warehouses and distribution hubs we pass on the highway. These REITs sit back and collect rent checks while the tenants pay their own way.

Here’s how the business model works:

  1. The REIT buys the property and builds (or renovates) the facility to rent out.

… Read more

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Forget Kevin Warsh. Here’s Who Really Controls Rates (and an 11% Dividend to Profit)

This administration is set on cutting interest rates—and they have the tools to do it.

The last thing we contrarian income investors want to do is fight Uncle Sam. Instead, we’re going to front-run his moves with an 11% payer that’s set up nicely for what’s coming.

The reason behind the lower-rate push is pretty obvious: 2026 is an election year, and the administration wants lower borrowing costs heading into the vote.

Bessent, Not Powell (Or Warsh) Is the One to Watch Here

Most people think Jay Powell, or newly nominated Fed chief Kevin Warsh, are the lynchpins here. But when it comes to rates, the real power lies with Treasury Secretary Scott Bessent.… Read more

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How to Play AI’s Power Demand for 10% Dividends (Timing Is Critical)

Utility stocks have been on a roll as more people come to see them as a way to play AI’s bottomless power demand.

Let me say off the top that this does not mean the “AI-power trade” is played out. Far from it.

But it does mean we need to pick our spots when investing in the sector. To that end, I’m going to give you my two-part strategy on how to approach utility stocks now.

The first part: We go with 8%+ paying closed-end funds (CEFs) to play this sector. There’s a simple reason for that: Utility CEFs pay far higher yields than individual utilities or ETFs.… Read more

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Serenity Now: 6 Calm Stocks Yielding up to 8.4%

New tariffs. A government shutdown. A brutal selloff in the software sector with speculation that AI will eat everything in its wake.

Concerned about a pullback? An outright bear market? Fair enough and, if so, let’s talk about beta.

Low beta stocks are our best friends for surviving a bear market. Stocks with betas below 1 are considered less volatile than the overall market. For example, we’d expect a stock with a beta of 0.5 to drop only half as much as the S&P 500 during a pullback.

Let’s consider low-beta fund iShares MSCI USA Min Vol Factor ETF (USMV), which did its job in the leadup to the “Liberation Day” panic last year.… Read more

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Our 8.6% Dividend Play on a “REIT Revival”

A multi-year disconnect in high-yielding REITs is about to turn on its head. When it does, these solid income plays are poised to shoot ahead of stocks.

I’m talking about a quick reversal of pretty well everything investors thought had REITs left for dead, interest rate trends and the work-from-home shift among them.

Now is the time to buy. And we contrarian income investors know the play:

At times like these, we look to 8%+ paying closed-end funds (CEFs) to reap the strongest dividends and potential upside.

I say this as REITs, long-time market outperformers, have been stuck in an unusually long slump.… Read more

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We Didn’t Start the Fire (But We’re Renting It Out for 12.1%)

“Wheel of Fortune”, Sally Ride, heavy metal suicide

Foreign debts, homeless vets, AIDS, crack, Bernie Goetz

Hypodermics on the shore, China’s under martial law

Rock and roller, cola wars, I can’t take it anymore

Billy Joel had had it with, well, everything geopolitical when he belted these lyrics to his latest number one hit in 1989. We Didn’t Start the Fire reached number one on the Billboard Hot 100 chart for two consecutive weeks, teaching listeners:

It was always burning since the world’s been turning.

And while Fall Out Boy gave us a worthy sequel “cover” of Joel’s hit in 2023 (encompassing Harry Potter to Brexit), the headlines have already lapped them.… Read more

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This “Backdoor” AI Stock Is Betting Big on … Self-Driving Tractors?!

Most people are totally missing the point on the AI trade. To use a hockey analogy (it is the dead of winter, after all!), they’re skating to where the puck is, not where it’s going.

They’re debating whether Meta Platforms (META) or Microsoft (MSFT)—which took a header last Thursday—are spending too much on AI, or whether all of this cash is pumping air into a stock-market bubble. Or whether OpenAI will turn out to be the Netscape of AI—jumping out to an early lead only to lose out to a competitor.

Distractions. All of them.

Big Tech is so 2025.… Read more

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This Top AI Trade for 2026 Pays a Huge 11.6% Dividend (It’s Not a Tech Stock)

If you’re wondering whether the rally in tech stocks is fading, well, it is. 

So if your portfolio is heavily weighted toward the sector (and it very well could be, given tech’s meteoric run), it’s time to shift.

We’re going to look at why the so-called Magnificent 7’s years-long run is set to ease in the months ahead. Then we’re going to go on offense and defense at the same time.

On offense, we’ll look to front-run the crowd into what I see as the next hot sector to benefit from the rise of AI. And for defense, we’re going to make a move to boost our dividend income substantially.… Read more

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4 REITs. 4 Monthly Dividend Programs. 4 Massive Yields of Up to 11.7%

Quarterly-paying dividend stocks? Ha!

We save those for the poor vanilla investors. Give us the monthly payers—those that dish divvies every 30 days.

Today we’ll discuss four monthly payers yielding between 5% and 11% per year. An average yield of 7.9%.

This means a $500,000 investment portfolio can buy this four-pack, earn $39,500 per year in dividend income alone and keep principal intact.

Better yet, the payments show up in neat monthly installments. No need to wait 90 days to get paid. The “checks” show up every 30!

Let’s contrast our monthly dividend strategy with the tried, true and (let’s be blunt) inferior techniques employed by unimaginative Wall Street suits who jam their clients into standard broad-based bond funds (or worse, a cheesy 60/40 portfolio):

The advantages of monthly payers are many:

  1. We cut down on “lumpy” portfolio income.

… Read more

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