Buy These Stocks for $45,600 Income on $600K

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Buy These Stocks for $45,600 Income on $600K

Relax. You might already have enough money to retire on.

My favorite dividend stocks let people retire comfortably on $600,000 or so.

Got more cash? Great! You’re in elite company.

Fidelity Investments—apparently happy to share its customer’s financial info anonymously—says it has more than 750,000 seven-figure 401(k) and IRA accounts.

That sounds like a lot, but it means less than 1% of Americans have $1 million or more saved for retirement. And that’s OK—select dividend stocks can help us retire comfortably on $600,000 or less.

Sure, a chunk of money is great. Especially when we can leave it untouched and let it grow.… Read more

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Our Plan to Ride the “Biden Buyback Tax” to Big Gains (and 1 Ticker to Buy Now)

There’s a group of dividend stocks out there that are set to skyrocket as the new “Biden buyback tax” rolls in.

These “dividend moonshots” are hiding in plain sight. Most people miss them because they’re looking at the wrong numbers: they’re obsessed with “first level” measures like dividend yields, P/E ratios or whatever.

But we second-level thinkers only need one indicator to find these cash machines, which are poised to profit in a surprising way as the new tax takes effect. I’m talking about a potent number called shareholder yield.

This metric isn’t on any screener, so it takes a couple minutes’ legwork to figure out.… Read more

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This 12.7%-Yielder Loves Rising Rates (and It’s Cheap Now)

Usually in a bear market like this, something is working somewhere. But I think you’ll agree that since the beginning of 2022, that “something” has been tough to nail down.

Treasuries are down some 23% on the year. And we know where the stock market has been.

Cash, of course, will always free you from stock- or bond-market volatility. But staying in cash too long leaves you exposed to today’s high inflation. And of course, cash pays zero dividends—and that’s just not an option for those of us looking to fund our retirements on dividends alone. That strategy largely allows you to tune out market volatility, which is why it’s a goal we aim for at my CEF Insider advisory.… Read more

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3 Sleepy Yielders to Soothe Your Bear-Market Boo-Boos

Let’s not be idiots chasing this bear market rally. OK?

Safe dividend stocks, fine. That’s what we’re going to talk about today. A trio of stability and sanity that doesn’t care if we see a September swoon or October keel over.

Yes, in bear markets like these we sell the rips. But we still buy the dips—we just make sure we do it smartly. And keep it low beta.

Duke Energy (DUK), for example, has a 5-year beta of 0.34. This means it moves only 34% as fast as the market.

In other words, on days when the S&P 500 is down 3%, this stock should decline a mere 1.5% or so.… Read more

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Here’s the ONLY Way To Invest in a Leading a 14.9% REIT

Among the many lessons I learned in the aftermath of the 2008 financial crisis, one of the most important was to do my own research. You simply cannot get ahead by chasing whatever tickers are hot on CNBC and Twitter, or by taking the headlines in financial media for granted.

But I must admit, it’s not always comfortable to think like a contrarian and focus on long-term income over a short-term adrenaline rush. It sometimes means sitting on stocks that may seem to “underperform” the high-octane tech stocks everyone’s gushing about. And it sometimes means thinking differently about performance by looking at what’s important to you vs.… Read more

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This 6.6% Dividend Is on a Rare “Discount Sale” (But Not for Long)

There’s a group of dividend payers out there whose businesses are doing better than they were before the COVID mess, but their stocks are still ridiculously cheap today.

Best of all, we contrarian income seekers can get these stocks at an even deeper discount than regular folks can—while collecting a healthy 6.6% dividend.

The trick? Buy them through a closed-end fund (CEF) like the one we’ll discuss below.

But let’s not get ahead of ourselves. The investments we’re going to buy through this CEF are real estate investment trusts (REITs), which own and rent out various types of properties, from shopping malls to warehouses and cellphone towers.… Read more

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Should We Own These 11 Dividends Over 7%? No, No, No

Sell ‘em if you got ‘em.

And c’mon, we all have ‘em.

Let’s think back a few months. Which stocks are we still holding now that we wish we had sold then?

I’m talking about the dividend dogs that, if we’re being honest, are not deserving of long-term positions in our retirement portfolios.

These mutts have had a fun summer—good for them (and us). Now let’s find them a nice home in another portfolio.

Why the deadline? September swoons are common. The Wall Street guys return from their Hampton homes and sell everything that rallied in August.

The summer rally (recently ended?)… Read more

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Here’s When the Summer Rally Ends (and 2 Dividends to Buy on the Dip)

Bad news for your friends who only own “America’s ticker”—the S&P 500. We’re set up for a September swoon that could easily send the SPDR S&P 500 ETF (SPY) down 5% or more from current levels.

Good news for us income investors—we’re going to have a great dip to buy some of our favorite dividend payers.

We’ll talk about the best dividend stocks for September in a moment. We’ll specifically highlight two “low-drama dividends,” too.

First, let’s discuss why we need to get ready for a pullback.

History Points to a September Swoon …

For one, if we look back to 1945, as the folks at CFRA Research did, we’ll see that September has been the worst month for stocks, with positive returns just 45% of the time.… Read more

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This Oversold Bond Fund Yields 7.5% (And It’s Set to Bounce)

When the market goes into the dumpster like it has in the last few months, one group of folks have an advantage: those who hold high-yield closed-end funds (CEFs).

If you haven’t already, now is a great time to join this group, thanks to the selloff. I’ll name an oversold bond fund that’s a great pick to start your CEF portfolio—or add to your current one—in a moment. It throws off a stable 7.5% payout that rolls your way monthly.

A 7.5%-Yielding “Dividend Lifeline”

Investors in “regular” stocks only wish they could get a payout like that. Unfortunately, the measly dividend on the typical S&P 500 stock (around 1.5%) means those who stick to the household names are reliant on price gains alone, so they’re forced to deal with sickening drops like the 2022 mess:

“Regular” Stock Investors Are Forced to Rely on This

To be sure, CEFs, like regular stocks, have fallen in the last few months, too.… Read more

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Great Grains! 7 Vital Food Stocks With Growing Dividends

The world needs to produce more food to feed everyone in the years ahead. Period.

Food shortages are likely to be an unfortunate megatrend of the 2020s. Rising  food demand is intersecting with another megatrend: shaky global supply chains.

Consider this bleak outlook from the U.N. World Food Programme’s 2022 outlook (emphasis mine):

“Globally, levels of hunger remain alarmingly high. In 2021, they surpassed all previous records as reported by the Global Report on Food Crises (GRFC), with close to 193 million people acutely food insecure and in need of urgent assistance across 53 countries/territories, according to the findings of the GRFC 2022.

… Read more

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