This “Crisis” Is a Boon for Contrarians (and This 6.7% Dividend)

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This “Crisis” Is a Boon for Contrarians (and This 6.7% Dividend)

We hear a lot of chatter in the business media about productivity these days—specifically how it could decline in the US (and, by extension, hit our gains from stocks—and stock-focused CEFs).

Today we’re going to look at why this fear is overblown, and how we income investors can profit—and collect a 6.7% dividend at a 13% discount—off that disconnect.

US productivity, for its part, rises by about 2% on average per year. As we discussed a couple weeks back, the S&P 500 has posted a 10.4% annualized gain since the late 1980s, and we can say that rising productivity accounts for about a fifth of that, so about a 2% gain in stocks on an annualized basis.… Read more

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“A” Payout Growers Popped 138% and 199% During Trump 1.0—Will History Rhyme?

Tariff Day has left us with Canada and Mexico in the crosshairs. With North American trade in focus, this may actually give a respite to stocks with supply chains elsewhere and light a fire under them.

Today we’ll talk about two dividend growers that have serious upside. One has a supply chain independent of Canada and Mexico, while the other has no manufacturing worries but some misguided RFK fears. The pair returned 138% and 199% during Trump 1.0, and, if history rhymes, the duo could return triple-digits again during Trump 2.0.

Our first stock, Analog Devices (ADI), is down 9% from its recent highs on trade fears.… Read more

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Let’s Start Trump 2.0 By Dumping These 6 Losers

We are now officially into Trump 2.0, and here’s the first thing I can tell you:

This new administration will hurt the returns of folks who simply buy an index fund like the SPDR S&P 500 ETF Trust (SPY) and call it a day.

What we’re now embarking on is a true stock picker’s market—a time when prudent moves into, and out of, individual dividend payers will be key.

That puts holders of SPY, which has to represent the current makeup of the S&P 500 index, in a tough spot. Since it has no manager who can buy and sell as markets shift, SPY holders are locked in as losing stocks cancel out some or all of the ETF’s winners.… Read more

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My “Go-To” Way to Beat SPY, Bag 8%+ Yields

We launched our CEF Insider newsletter nearly eight years ago, in March 2017, and we’ve seen a lot since then: a pandemic, interest-rate swings, dramatic fights between fund managers and activist shareholders, and more.

But for me, the most exciting event has been the over 200% profit one of our long-time picks, a closed-end fund (CEF) called the Adams Diversified Equity Fund (ADX), has delivered to shareholders as of this writing.

Market-Beating Gains With ADX

With a 204.3% return currently as I write this, ADX actually beat the S&P 500 index fund that many American investors opt for: the SPDR S&P 500 ETF Trust (SPY), which is up just 171.5% over the same time period.… Read more

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The Big Inauguration: 7 Brand-New Dividends up to 8%

Ready for the inaugurations? Yes, with a plural. We are talking seven brand-new dividend programs today.

Dividend payers are our beat here at Contrarian Outlook. And we welcome newcomers because they can really kick off a phenomenon I refer to as the Dividend Magnet.

Over long time frames—years—stock prices follow their payout higher. We like dividend growers because they are the surest, safest way to profits in the stock market. Buy a rising payout, sit back, and watch the stock price chase it.

New dividend payers can be even better because they tend to grow their dividends quickly.… Read more

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REITs Are Set to Bounce in 2025 (and a 7.8% Payer I See Leading the Way)

Real estate investment trusts (REITs) are making a comeback from their post-pandemic downturn—and with the sector still lagging the stock market, we’ve got a chance to buy at attractive discounts.

And we’re well set up to add some 7%+ dividend yields—that have started to grow lately—as we do, not in REITs directly, but in REIT-focused closed-end funds (CEFs).

REITs’ Lag Has Been Dramatic, But the Winds Are Shifting

While the S&P 500 has enjoyed a 14.0% annualized return over the last five years, as of this writing, REITs, as measured by the performance of the benchmark SPDR Dow Jones REIT ETF (RWR), have returned a paltry 2.6% annualized over the same period.… Read more

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Trump 2.0: A Tale of 2 Stock Markets?

How are we feeling about the stock market, my fellow contrarian?

More importantly, should we have an opinion on the market-at-large at all? I don’t think so. Trump 2.0 will create a “market barbell” of big winners and sad losers. Let’s focus on the dividend payers that will be propelled higher—and step over the laggards.

There are some dandy dividends ready to dart higher. Today they sit in the bargain bin thanks to investor reservations about the Federal Reserve. When Chairman Jay Powell took the stage in December, he delivered a sober discourse to investors: Don’t expect as many rate cuts as you were hoping for.… Read more

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How To Tap “Trump 2.0” for 74%+ Annualized Gains

Trump 2.0 is now only a bit less than a week off, and things are moving fast.

Here’s one thing I can tell you: While everyone’s talking about tariffs, Greenland and the Panama Canal, what investors—particularly dividend investors—should be talking about is way more “boring”: The yield on the 10-year Treasury note.

Because when the rubber really hits the road on the new administration, it’s the 10-year, more than anything else, that’s going to call the tune here.

And the next move I see it making, which we’ll get into below, is poised to benefit some of our favorite income plays: real estate investment trusts (REITs).… Read more

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How to Buy Tomorrow’s 10%+ Yielders Today

These five stocks may deliver big dividend raises. I’m talking potential payout hikes starting at 20%.

It’s possible that one of these firms doubles their dividend because, heck, they did that one year ago!

How do I know?

Gaudy dividend growth numbers are especially attractive because they often lead to big price gains. I call this dynamic the “dividend magnet.”

The “magnet” effect is pretty straightforward: When a company not only grows its profits, but shares gobs of those earnings with stockholders as dividends, investors on the outside see both a sign of quality and the potential for income and buy in—driving the stock price higher for us!… Read more

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This Amazing Investment Can Give You 10% Returns Practically Forever

You may have noticed that lately, the media is pumping out more stories on how the US economy and stock markets are leading the world.

Well, it’s true. Today we’re going to get into a few reasons why that is. We’re also going to look at how us income investors can use a special kind of income play, closed-end funds (CEFs)—many of which yield north of 9%—to cash in on America’s runaway lead, boosting our dividends and setting ourselves up for 10% annualized returns, basically forever.

We’ll wrap with a real “nuts-and-bolts” view of the factors that go into the ongoing rise in US stocks—uncovering fundamentals that few investors stop to learn (but can help us immensely, especially when a 2022-style pullback tests our nerve).… Read more

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