These 2 “Battleship” Dividends Love Inflation (and Yield Up to 5.5%)

The Contrary Investing Report

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

These days, we contrarian income seekers are following a simple rule: “trade lightly.” Truth is, we saw this mess coming. It’s why we started lightening up our positions in my Contrarian Income Report service back in November.

In so doing, we’ve locked in some very nice returns, like 90% on chemical maker Chemours Co (CC); 44% on blue-chip-focused closed-end fund (CEF) Gabelli Dividend Trust (GDV); and 98% on the PIMCO Dynamic Income Fund (PDI—formerly PCI).

We didn’t sell any of these dividend payers because something was wrong with them—far from it!

They’d simply ridden Jay Powell’s cheap-money wave as far as they could.… Read more

Read More

With all the panic over the headlines these days, it’s a good time for us contrarians to step back and take stock—because there are high-yield bargains out there that can help us navigate this mess.

(Hint: the best hunting ground for us contrarians today is in a group of roughly 500 funds called closed-end funds, or CEFs, many of which pay 8%+ yields and trade at ridiculous discounts. More on them, and a 9.9%-paying fund that might be a good fit for you if you’re investing for the long term, in a moment.)

First, if you’re feeling nervous about your portfolio, let’s step back a bit.… Read more

Read More

Every legendary investor worth their salt has some sort of phrase to describe what investors should be doing right this very minute.

“Be fearful when others are greedy, be greedy when others are fearful.”

“Buy when there’s blood in the streets.”

Largely speaking, most stocks on the market are on sale to some extent. And sure, we could go out and make a few targeted bets on these bargains.

But I’d prefer to squeeze even more value out of the stock market.

Enter closed-end funds (CEFs).

Why CEFs Are Our Best Option Now

If we were to go out and buy an exchange-traded fund (ETF) that invests in, say, the Nasdaq Composite or Russell 2000, or really any area of the market you felt was underpriced, you’d be able to enjoy in the collective discounts of all their holdings.… Read more

Read More

A popular adage in the investing world is “Wall Street hates uncertainty.” Unfortunately, many investors have been living in a world of surprises and uncertainty for all of 2022.

Some of that is beyond their control, including volatility caused by Russia’s aggression in Ukraine. However, a lot of the challenges we face in 2022 are by no means unexpected.

You simply had to be paying attention.

In talking with family and friends, I’ve found that one of the biggest risk areas that gets overlooked in their personal portfolios is an over reliance on Big Tech. This is a particularly important topic right now, with the Nasdaq down about 15% in the last 30 days as megacap technology companies have cratered.… Read more

Read More

This wild economy has set us up with an opportunity to smartly “time” both the real estate and stock markets—and grab ourselves a hefty 9.9% dividend along the way.

I’ll show you a ticker we can use to do it in a moment. But first, let’s talk about the stock/real estate “two step” I’m proposing—starting with the state of play in the housing market, which has changed a lot in the last few weeks.

House Prices Look to Be Peaking

It comes as a surprise to no one that house prices are on a tear these days, hitting an average of $500,000, according to the latest numbers:

When most Americans buy their primary residence, they aren’t primarily focused on the sticker price; their monthly mortgage cost is what they’re really looking at.… Read more

Read More

The stock market keeps falling and falling because, for the first time in 14 years, there is nobody there to catch it.

The “Fed put” has expired.

The genesis of the Federal Reserve’s implicit put—the notion that the Fed will fix any decline—was the 2008 Financial Crisis. The financial system was on the ropes and the stock market itself became “too big to fail” as far as the Fed was concerned. Then-Chairman Ben Bernanke printed a bunch of money, boosted the market and was heralded a financial hero.

Since then, the Fed has been reluctant to let the stock market drop.… Read more

Read More

The retirement-income battle never ends! In 2020 and 2021, we were terrified of dividend cuts. Now we’re sweating soaring inflation!

The good news? No matter what the worry, we can apply my “2-step retirement income plan.” It’s designed to keep anything Jay Powell, Vladimir Putin or even Chinese President Xi does from impacting our dividend streams.

(Below I’ll give you two tickers that work perfectly with this strategy, including one that profits from the demise of Russian oil. This unsung company just hiked its payout 50%.)

Inflation Sideswipes Retirees

Of course, this market crash is mainly the work of Powell, who overshot the mark on stimulus, boosting the money supply by a ridiculous 40% since February 2020.… Read more

Read More

Most investors I speak to have no idea how much they’ll need to retire (and with the uncertainty we’re facing today, that’s totally understandable!).

So let’s talk about that—and focus on closed-end funds (CEF), totally overlooked investments that could let you retire on dividends alone, possibly on as little as $325K. That’s the ultimate way to get peace of mind these days, because you don’t have to worry about selling into a pullback to keep your income stream intact.

The Income Side

When calculating how much you’ll need to clock out of the workforce, you really only need to know three things:

  1. How much you’ll spend in your first year of retirement.

Read more

Read More

Mid-cap dividend stocks are the best bargain on the board right now. I love them because lame income investors don’t consider them. They fixate on:

  • Large-cap stocks: For dividend safety.
  • Small-cap stocks: For dividend growth.

Meanwhile many great under-the-radar mid-cap stocks sit between $2 billion and $10 billion in market capitalization. They sit in a “sweet spot” that accommodates dividend safety and growth.

Which is why they generate big returns.

Touchstone Investments reports that, when looking at 20-year rolling returns, mid-caps have experienced “typically higher absolute returns during the last 42 years”:


Source: Touchstone Investments

It’s easy to overlook these names—the media doesn’t talk about them as much, and they tend to have far less analyst coverage than the Apples (AAPL) and Microsofts (MSFT) of the world.… Read more

Read More

There’s a famous experiment called “the marshmallow test.” In it, scientists give little kids a marshmallow along with a choice: Eat the treat immediately, or wait 15 minutes to get a SECOND marshmallow to snack on.

The test has been repeated several times over the years, and the results are pretty simple: Kids who delay their gratification for bigger rewards are typically more successful and more well-adjusted in the long run.

And let’s face it, we all know kids who wouldn’t even listen to the instructions and simply stuff that marshmallow in their face as soon as the adult leaves the room.… Read more

Read More

Categories