Chaos Is Rocket Fuel for These 2 Stocks (and Their Dividends)

The Contrary Investing Report

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

Chaos Is Rocket Fuel for These 2 Stocks (and Their Dividends)

One thing is clear from the last few weeks: The geopolitical chaos never stops.

We contrarians get that. But the first-level crowd does not. When we’re hit with a war, snap tariffs or a pandemic (ugh!), most investors panic.

And the truth is, chaos—whether it’s war in Iran or fears that AI will erase whole industries—is coming at us faster than ever.

Most people think they can handle this wave of worry. But it pays to remember the famous Mike Tyson quote: “Everyone has a plan until they get punched in the face.”

True in life and investing. It’s just another way of saying that the same investors who think they can handle the latest “punch in the face” are often the first to turtle and sell low.… Read more

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How Income Investors Can Grab 8.9% Dividends From the SpaceX IPO

Can income investors get in on the coming SpaceX IPO before the stock goes public (and ideally without overpaying?) Let’s find out.

No announcement of an IPO has been made, but SpaceX’s recent acquisition of Starlink and Musk’s xAI firm signal that an offering is in the pipeline.

Even though the company still feels relatively new, SpaceX successfully launched its first rocket 18 years ago. Since then, it has reportedly earned roughly $20 billion in government contracts, with Morningstar recently reporting that it posted about $8 billion of profits on $15 billion of revenue in 2025.

If those numbers stand up—and there’s no way for us to confirm them—that’s a profit margin above 50%.… Read more

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5 Small Stocks, 5 Super-Sized Payouts of Up To 11%

What’s better than getting to buy 6.6%-11% yields at discounted prices?

How about snapping those sweet dividend payers while momentum is on your side?

Late in 2025, I wrote about a “small-cap reawakening”—a bullish tailwind from retreating Federal Reserve rates that had begun to propel smaller companies forward and could continue well into 2026.

So far, so true. Small- and mid-cap stocks (or “SMIDs”) alike have been cruising full sail ahead while their larger cousins have been dead in the water.

2026 Has Been a Reversal of Longstanding Large-Cap Dominance

Better still for you if you haven’t yet taken the plunge into Wall Street’s more diminutive stocks: Small caps’ hot start has done little to drive up valuations.… Read more

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Our 8% Income Plan as AI Plays “Whack-a-Mole” With Stocks

AI has investors in a roil again—this time over … a blog post?

The article in question—written by Citrini Research and posted on Substack—was fear-based (to say the least!). It essentially argued that AI was going to cause a “jobs apocalypse,” wiping out demand and taking the economy down with it.

It was pure science fiction. But it was enough to wipe $2 trillion from stocks in one day on February 22. And it comes after the same sorts of fears have hit software stocks, IT-security stocks and even logistics stocks over the last few weeks.

It’s one of the most absurd panics I’ve ever seen, frankly.… Read more

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Our 8% Income Plan as AI Plays “Whack-a-Mole” With Stocks

AI has investors in a roil again—this time over … a blog post?

The article in question—written by Citrini Research and posted on Substack—was fear-based (to say the least!). It essentially argued that AI was going to cause a “jobs apocalypse,” wiping out demand and taking the economy down with it.

It was pure science fiction. But it was enough to wipe $2 trillion from stocks in one day on February 22. And it comes after the same sorts of fears have hit software stocks, IT-security stocks and even logistics stocks over the last few weeks.

It’s one of the most absurd panics I’ve ever seen, frankly.… Read more

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We Didn’t Start the Fire, Part 2: Now the Bombs Are Real (and So Are Our Dividends)

Last month, we hit the contrarian karaoke bar together. No judgment. It was a good time!

If you’ve got a (ahem, no judgment) fuzzy memory, well, here’s how it went down. We sang some Billy Joel—good start, I know.

A little We Didn’t Start the Fire. We honored his point that the chaos never stops. That was the case in 1989 when the banger topped the Billboard charts. It remains true today.

Ha, we even belted a 2026 verse over our (virtual) beers!

Venezuela, Davos snow, Iran missiles here we go

Greenland borders, tariff fights, Powell keeping money tight

Wow.… Read more

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AI Is Boosting Pharma Profits. Here’s Our 8.8% Dividend Play

Wall Street is mired in another panic over AI. And we contrarians are here for it.

Our play? As always, we’re going where first-level investors aren’t, quietly snapping up dividends AI is set to supercharge.

I’m talking specifically about an overlooked opportunity in drug stocks, which are about to see the value of their R&D dollars get a big boost from AI. We’re going to tap in with an 8.8%-yielding closed-end fund (CEF) that’s trading for 11.4% below its “true” value.

That discount exists in part because investors—worried about how AI may disrupt sectors like software—are ignoring pharma, and the accelerated product cycles (and cash flows!)… Read more

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CEF Faceoff: These 8% Dividends Look the Same. But One Is the Clear Winner

Today I want to get into a question that comes up on the regular in 8%+ yielding CEFs:

What if you run across two of these income generators that seem to be equal in pretty well every way. Can you just buy one or the other?

Truth is, sometimes you can and sometimes you can’t, but it’s not always clear when simply closing your eyes and picking one fund is the right move. That’s because with CEFs, there are a lot of moving parts one needs to pick apart and look at carefully.

Let me show you what I mean with two CEFs holding real estate investment trusts (REITs)—publicly traded “landlords” holding properties ranging from senior-care facilities to malls and warehouses.… Read more

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6 Energy Stocks That Pay Us Up to 14.8% (Middle East Chaos or Not)

“Time out.” I yelled it with a hint of disgust. I didn’t even have to make eye contact with my assistant coach—we were on the same page.

We’d just watched the second air-ball three-pointer of the second half.

“Get in there for Reese.”

Reese shrugged and jogged off the court. I grabbed him lovingly by the shoulders. “Hey buddy — do you know why you’re out?”

He nodded slowly. “Because…I…shot… a…three…pointer.”

“And what did I just say in the huddle?”

“…To…not…shoot…three…pointers.”

I patted him on the shoulder. Reese was back in the game in two minutes. But I had to make the point.… Read more

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How to Play the SaaS Wreckage for Dividends (and Upside)

There’s one critical takeaway for us as AI flits through the market, whacking sector after sector as it does:

Actively managed funds—closed-end funds (CEFs), in particular—are the best way to play it. 

Funds with human managers are often viewed as dinosaurs by the AI crowd and those obsessed with low-fee ETFs, but they shouldn’t be. Because when it comes to investing in a sector as complex, and fast-changing, as tech, we need an insider in our corner, spotting, and moving ahead of, the next shift before it hits.

I’m talking about a real person who talks to other pros in the business and uses their own personal tech background to get at the insights others miss.… Read more

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