Play This “Fed Bounce” for Dividends Surging 73%+

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Play This “Fed Bounce” for Dividends Surging 73%+

Utility dividends haven’t been this generous in years. Thank you, stock market selloff!

These yield machines have been expensive for a while. Today, utility stocks are finally cheap—and their dividends are finally high enough to get our attention!

That makes right now our time to buy. The Federal Reserve created this deal, and hey, the Fed could easily take it away with any hint of a policy pivot.

History tells us that cheap utility stocks don’t stay in the bargain bin for long. I’m staring at two in particular that are likely to bounce back next year. Both of these stocks are likely to deliver double-digit payout hikes, too.… Read more

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3 Selloff Buys Paying 13.5% (With Big Price Upside in 2023 and Beyond)

These three little-known funds yield up to 13.5%—and their payouts are actually safer than they’ve been in years, thanks to the Fed-induced selloff.

Now is the time to buy them. Patient investors who do so will be nicely set up for annualized returns north of 14% in the long run, with most of that gain in dividend cash!

These three timely buys—all closed-end funds (CEFs)—are winners now because they let us buy stocks (and real estate, in the case of one of the funds we’ll discuss below) at a rare double discount: one discount on the CEF itself and another because investors have oversold many of the investments these funds hold.… Read more

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3 Dividend Dogs About to Become Analyst Darlings in 2023

I love dividend stocks that analysts hate. For two reasons:

  1. By definition, they can’t be downgraded.
  2. In weak moments, they are candidates to be upgraded.

And since vanilla investors, for whatever reason, listen to analysts, upgrades can provide a nice “pop” in the stock price.

So give us the stocks that can only “fall out of the basement window”—yielding a fat 14.6% on average—that carry this ultimate contrarian indicator:

They’ve lost the typically rosy analyst community. Which means it’s time for us to find them.

Does Wall Street Say “Sell”? That’s a Big “Buy” Signal

Wall Street’s “pros” are an optimistic bunch.… Read more

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How To Dodge Whiplash With Rock Steady Dividend Stocks

No investment portfolio moves up in a straight line. But in a fast-changing environment like this one, it is important for investors to do their best to limit volatility as much as they can by a focus on high-quality, low-risk stocks.

Too bad most investors are obsessed with chasing fads, though.

First, it was the outperformance of energy stocks in early 2022. Now it’s the resurgence of select biotech stocks that have snapped back 20% or 30% in just a few weeks. And undoubtedly, it will be something else with even more hype behind it by Christmastime.

The problem with fads is that you can almost never predict how long they will last, or what will come next.… Read more

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A “Heads You Win, Tails You Win” Way to Play the Recession (With a 7.3% Dividend)

A recession is on the way—and stocks are … rallying? It makes zero sense on the surface, but there is good reason for the bounce we’ve seen this week. And we’re going to play it with a 7.3%-paying fund that’s set to roll higher with a recovering market.

No, we’re not talking about an index fund like the SPDR S&P 500 Trust ETF (SPY). My colleague Brett Owens calls SPY “America’s ticker” for good reason: pretty well everyone owns it!

Instead we’re going with a fund that pays us a 7.3% dividend today. That’s more than 4-times SPY’s meager 1.7% payout.… Read more

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This “Hidden Yield” Stock is Ready for 18.4% Yearly Returns

This dividend stock yields 10.4%. But really it boasts an annual “hidden yield” of 18.4% when we consider buybacks.

Eighteen-point four percent per year. Wait, what?!

(Your strategist pauses to point upwards towards the late, great Norm Macdonald.)

A Hidden Yield Formula for 18.4% Yearly Returns

Now what if I told you this stock was also being heavily shorted? Over 11% of this company’s outstanding shares are being sold short. This is fuel for a potential rally because these positions must be bought back later.

Remember, when traders sell a stock short, they book the sale in advance. “I think this stock is so terrible, I want to sell it at today’s price.”… Read more

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2 Cheap Dividends (Growing 275%) Insiders Are Buying Hand Over Fist

We have plenty of cheap dividend stocks to buy today. But which ones are really bargains—and which are cheap for a reason?

The P/E ratio won’t tip us off. We’re heading into a recession. That “E” stands for earnings. Profits can disappear quickly if we’re not careful.

Let’s look past the vanilla headline metrics and instead search where almost no one else does. Let’s have what the corporate insiders are having.

This strategy can set us up for 275% gains or more. We’ll discuss why in a moment, featuring a trio of bullish factors that are lining up for a select group of stocks.… Read more

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These 8%+ Dividends Could Fall Hard in a Recession

Members of my CEF Insider service and I always look for big dividends we can collect for the long haul. I’m talking 8%+ payouts here, many of which come our way monthly. (This is possible with CEFs, and these funds’ discounts to net asset value, or NAV, give us some nice upside to go along with those payouts).

By thinking long term, we give our CEFs’ discounts the time they need to close, propelling their share prices higher. (There are exceptions to this, however, such as with covered-call CEFs, which do better when markets are volatile—we tend to swing in and out of these as volatility ebbs and flows.)… Read more

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How to Collect $132,000 in Dividends on a Million Dollars

While vanilla investors worry along with the herd, we contrarians are buying. And oh, the yields we have available!

As I write to you today, I’m staring at no less than 29 income funds that yield more than 8%. Twenty-nine paying more than eight!

For retirees with a million-dollar portfolio, this is $80,000 per year in dividend income. Actually, more, because some of these funds pay up to 13%.

Why would we sell when this is the best time to buy in years? I explained this while yapping with Moe Ansari on his Market Wrap program. Moe asked me: “We hear all the ‘Doom and Gloomers’ out there.… Read more

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How To Break the “Boom, Bubble and Bust” Cycle in Your Dividend Portfolio

In September, the S&P 500 logged its worst performance since 2002. And after further pain to start October, stocks touched on a two-year low.

Many investors are convinced that the worst will be over soon, and then they can get right back to the business of reaping 25% to 50% a year in Big Tech stocks the way they used to in the good ol’ days.

Fat chance.

The sheer volume of naïve investors out there, full of excuses and wide-eyed optimism about the market, is staggering.

They say the war in Ukraine that began last winter was a once-in-generation conflict, and it’s only a matter of time before Big Tech comes roaring back…

They shrug at 500-point declines in the Dow, pointing out that at least things aren’t as grim as they were during the financial crisis or the dot-com crash…

And when all else fails, they point out that, hey, at least we aren’t living through another Great Depression.… Read more

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