A Retired Engineer’s “Buy ‘Em All” Strategy Is Crushing It

The Contrary Investing Report

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

A Retired Engineer’s “Buy ‘Em All” Strategy Is Crushing It

Oh, the joys of home ownership. We found a moldy corner last week. And not a little spot, either.

A full farm thriving behind a brigade of stuffed animals wedged against the wall. (The stuffies block the airflow, providing cover for this ecosystem.)  

Now Waiting Their Turn in the Laundry Line

“I see this every day in the homes down here,” the abatement guy explained his frequent trip to my old-home neighborhood. “Usually behind furniture jammed against the wall.”

Well, it’s the cost of doing business. The home has character. We like living downtown—makes us still feel kinda cool, sharing sidewalks with the neighborhood “kids” (anyone under 35) who live without stuffed animals upstairs.… Read more

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The Robots Are Coming for Insurance (and Paying Us 8.3% Dividends, Too)

There’s a group of stocks out there that most people think yield just 2%—or less.

But they’re way off. In reality, these “elite” payers yield 2X, 3X—and in the case of a stock we’ll talk about below, even nearly 4X that. I’m talking about a tidy 8.3% shareholder yield (remember that phrase) here.

This one has another advantage we love in a market like today’s, too: Its management team “buys the dips” in the share price for us. We don’t have to do anything at all!

Stocks like this are perfect for times like these, with the economy still ticking along nicely.… Read more

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Is This 29% CEF Discount a Deal or a Trap?

One of the most expensive mistakes CEF investors make? Chasing a fund’s discount.

That would be the discount to net asset value (NAV).

A big discount has a lot of appeal because it essentially means we can buy a CEF’s assets—stocks, bonds, REITs, utility stocks, you name it—for less than we could if we bought them ourselves on the open market.

So it makes sense that we should always go for the CEF with the biggest discount, right? After all, CEFs pay dividends north of 8%, on average—with the portfolio of my CEF Insider service paying even more: 9.3% as I write this.… Read more

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Five Dividends Up to 15% the “Smart Money” Can’t Stand

I hadn’t seen my boy in years. He wasted no time laying into my career decisions.

“Why are you messing around with the finance stuff? The blogging? No future in it.”

Well, good to see you too, buddy.

“You have real value in the software thing you’re doing. Stick with that.”

His advice was to leave Wall Street to him. He worked for a big-name firm. At the time of our run in, we were five or so years out of undergrad.

In true contrarian form, I ignored him. And it’s a good thing! Here we are talking stocks together and the software startup he wanted me to focus 100% on?… Read more

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This 8.2% Dividend Is a Smart Play on “AI Panic 2.0”

Suddenly, investors think AI is bad for software companies.

The truth? This whole story is a red herring. The real tale here is one of gains—and dividends—not losses. And we can nicely tap in with a fund sporting unique “downside insulation” and an 8% dividend, too.

Why the Software Selloff Is Overdone

Truth is, the premise of this whole argument is wrong, especially from an investment standpoint, and the reason why has a lot to do with timing: This bear market in software that’s shown up in less than a month and on news that’s, frankly, flimsy.

To wit, the selloff began because of a new product by Anthropic.… Read more

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Why My AI Scouting Report for 5th Grade Basketball is Bullish for Bonds

I took a glance around the gym from my courtside seat on the baseline.

Yup, I was definitely the only person in attendance without a kid playing in the game. My face was the giveaway. I wasn’t emotionally invested. I was detached. Analytical. Calculating.

I was a scout.

That’s right, your investment strategist—who coached the previous game—waved farewell “for a few minutes” to his wife and kids in the parking lot to watch the “beginning” of the next contest.

Forty minutes later, I was excitedly texting my assistant coaches with my findings. No reply, however, because they were likely having dinner with their families like normal people.… Read more

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AI Rocked Software Stocks. These 7.5% Divvies Are Cashing In

A major AI upgrade just crushed software stocks. We’re going to cash in with two “volatility-loving” dividends paying 7.5%+.

Just days ago, new AI tools were rolled out that let bots make entire apps by themselves. It’s not a big leap from there to the question a lot of people are asking now:

“Why would anyone buy software from a Microsoft (MSFT) or a Salesforce (CRM) if AI can just build for free?” 

It’s legit, and it sent these stocks tumbling. It’s frankly hard to know which breakthrough will come next, though financials and office REITs have been pressured in the last couple days.… Read more

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Two 9% Dividends on Sale (Up to 17% Off). Thank the Software Selloff.

The recent plunge in software stocks is another reminder that AI is rattling through the economy, setting off rapid change and disruption wherever it goes.

Investors sold software stocks on fears that new AI tools will make it easier for individuals to create their own apps, potentially taking business from software developers.

This is a big change—and here’s some news that might surprise you: For income investors, it sets up another way to tap AI’s growth for dividends. We welcome that; in the early days of AI, the only real ways to get in were through low- (or no-) payers like NVIDIA (NVDA).… Read more

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4 Yields Up to 9.2%: Hidden Gems or Value Traps?

The broader market is expensive right now. Price-to-earnings (P/E) ratios in the 20s and even 30s and higher are the current “norm.”

No thanks—we’ll take a look in the bargain bin.

Today we’ll discuss a four-pack of dirt-cheap dividend payers dishing between 4% and 9.2%. They are much cheaper than their peers. Check it out:

  • The S&P 500’s forward P/E (22.2) has only been this high twice in the past 40 years: the COVID bottom and recovery, and the dot-com bubble and burst.
  • The small-cap Russell 2000’s forward P/E (26.5) isn’t in as rarefied air, but it’s still near the top of its historic long-term range.

… Read more

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“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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