These Safe 8% Dividends Are On Sale (Thanks, Jay!)

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These Safe 8% Dividends Are On Sale (Thanks, Jay!)

It’s prime time to grab two bond funds tossing out 8%+ dividends now—and we have the Fed (of all things!) to thank for this opportunity.

Last year, as we all know (too well), the Fed raised interest rates at the fastest pace in history, bringing them to their highest point in nearly 20 years. As a result, many corporate bonds (represented by the red line above) are yielding a lot more than they used to.

Take, for instance, two bonds from Apple (AAPL), one issued in August 2020 (when the world looked a lot more precarious than it does today, as we still had an unresolved pandemic worldwide) and one issued in May 2023.… Read more

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3 Dividend Stocks Soaring While the Market is Sinking

As contrarian investors, we have no desire to buy the stock market while it’s hot. We wait for it to cool off. And cooling off it is.

Three weeks ago, I warned that NVIDIA Corp (NVDA) was pricey. On cue, the stock sank 10%!

It’s since bounced, but I’m not sure the bottom is in for this bubbly darling. More tears are likely.

So what to buy instead? I’m intrigued by stocks that have the ability to soar while the broader market sinks. That’s a strategy we employed previously with semiconductor maker Texas Instruments (TXN).

Below is a chart of TXN’s performance over the last decade.… Read more

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These Snubbed Funds “Convert” Paper Gains to Huge 9% Dividends

I just read one of the best articles on personal finance I’ve ever seen.

The piece, titled “I Saved Too Much for Retirement: What I Wish I’d Done Instead,” by Martin Dasko and published on Yahoo Finance, warns of a very real danger: “If you save too much for retirement,” Dasko writes, “you could find yourself missing out on your best years, and even end up with a higher tax liability when you stop working.”

Of course, the article also says that it’s better to overprepare financially and warns of how difficult it is to retire on your own (“hire a professional!”… Read more

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How to Get Filthy Rich with Safe Dividend Stocks

Please keep this between you and me. I don’t want to have to explain this again to every vanilla income investor out there.

But it’s important. And timely, thanks to the current revival in volatility.

Dividend stocks, at times like these, can do more than simply dish out income. They can make us filthy rich, too.

Yeah, I know. The promise of price gains can be “over the top” here in Dividendland. Most of us are content to grind, grind, grind. Send us our payouts and keep our portfolios intact.

If you’re a current Contrarian Income Report subscriber, you are well versed in this approach—and better than most!… Read more

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This Fat Dividend Is Growing Fast (Name and Ticker Below)

There are plenty of stocks out there, right now, with payouts growing fast—heck, some of them give shareholders a “raise” every three months.

You won’t find these “Dividend Accelerators” among the big names of the Dow.

A number of them are real estate investment trusts (REITs)—“landlords” of everything from apartments to warehouses. And they’re not just dividend-growth machines; most throw off higher current yields than the typical S&P stock, too.

And I mean much higher: right now, the REIT benchmark Vanguard Real Estate ETF (VNQ) yields 4.5% as I write. The typical S&P 500 name? A sorry 1.5%.

You can thank the federal government for that: it gives REITs a pass on corporate taxes as long as they pay 90% of their income as dividends.… Read more

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These 3 Funds Could Pay You $4,000 a Month

Let’s go ahead and build ourselves an “instant” income portfolio throwing off a rich 8.8% yield. A yield like that, after all, could put a dividends-only retirement within our reach. Or at the very least help you scale back your day job and make up the difference with dividend payouts.

This, of course, is the essence of financial freedom, and my favorite high-yield assets, closed-end funds (CEFs), are our best play here. When we build our retirement with CEFs, we get to hold the top stocks, bonds and other assets, like publicly traded real estate investment trusts (REITs), out there.… Read more

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This 6%-Yielding Portfolio Is Cheap. But Is It a Value?

Let’s talk about the cheapest dividend payers in the world. With respect to cold hard cash flow.

We contrarians are too savvy for P/E ratios. We know that earnings are accounting creations. “Profits” are all fugayzi.

Free cash flow (FCF), on the other hand, is what it is. The cash a company brings in, minus capital expenditures. This cash can be reinvested in the business or, better yet, paid out to income investors like us.

We like companies that dish dividends because their businesses are running on relative autopilot. They needn’t plow every dollar they raise back in. Which is great—more yield for us.… Read more

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This 9.8% Dividend Could Fund Your Retirement for Decades

We’re facing a “2016-like” moment in bonds these days, meaning anyone who buys now has a shot at locking in 10%+ dividends for decades—and a shot at price upside, too.

I mention 2016 now because, back then, something truly unusual happened: interest rates on bonds jumped in a short period of time, driving the payouts on high-yield corporate bonds to nearly 10% at their peak:

Rates Drop, Soar, Drop, Soar Again

As you can see above, anyone who bought a high-yield bond in 2016 locked in a 10% cash flow. Many of these bonds continued paying out interest without a hitch, even through the pandemic, a time when yields spiked again, giving investors another chance to buy bonds at another huge interest rate.… Read more

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Fitch Slapped: Nifty 9.5% Dividend is Discounted, Ready to Rise

Everyone hates bonds right now. Perfect—let’s buy this nifty 9.5% payer while it’s discounted!

Why the sale? A bearish narrative, of course. In 2023, we have a narrative for everything, after all.

Last week, the Bank of Japan (BOJ) announced it is softening “yield control” efforts for 10-year Japanese government bonds (JGBs). Inflation is finally picking up in Japan, and the BOJ is still printing money to buy JGBs.

Ironic? Yes. But the BOJ, the money-printing addict, is finally admitting it has a problem. We can think of this as step two of a potential multi-step inflation recovery effort.… Read more

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This “Peter Lynch Favorite” Delivers 8.3% Dividends, 77% Payout Growth

Few folks know it,  but there’s a comically ignored indicator that regularly hands out safe 8%+ dividends—plus payouts that surge double-digits.

I’m talking about insider buying.

When it comes to the buys and sells of the folks in corporate C-suites, Peter Lynch said it best: “Insiders may sell their shares for any number of reasons, but they buy them for only one: the think the price will rise.”

Far be it for me to “edit” Lynch, but I’d add one more thing: these ballers also think the dividend is safe.

Think about it for a second: dividend safety is priority No.… Read more

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