2 Deadly Dividends to Sell “on the Rip” (and 2 Proven Payouts to Buy Now)

Our Archive

Search completed

2 Deadly Dividends to Sell “on the Rip” (and 2 Proven Payouts to Buy Now)

Look, we’ve all loved watching our dividend payers rocket to the moon these past few weeks. Best part is, most of the market has been onboard: 

Everyone Wins in This “Close Your Eyes and Throw a Dart” Market

Here we can see the jump in the S&P 500 as a whole (in purple) versus its return on an equal-weight basis (in orange). Sure, there’s a bit of a gap, but safe to say this has been an across-the-board surge.

We can (in a backhanded way!) thank Jay Powell—just as he hinted that high Treasury yields were doing the Fed’s work for it, the bond market (figuratively) flipped him off … and Treasury yields plunged from 5% to around 4.6% now.… Read more

Read More

Why These 8%+ Yielding Funds Crush Low-Fee Index Funds (Every Time)

If you always wanted a free lunch but thought they don’t exist, well, they kind of do, in the form of the Fidelity group of ZERO index funds, like the Fidelity ZERO Total Market Index Fund (FZROX).

After all, its 0% fees mean it should easily beat a closed-end fund (CEF) with a high expense ratio, right? Well, not so fast.

0% Fees Do Not Equal Outperformance

FZROX—in purple above—may levy no management fee, but it’s underperformed many equity CEFs over a long period. Since inception, it’s trailed the Adams Diversified Equity Fund (ADX), in blue, and the General American Investors Co.… Read more

Read More

If You See a Dividend Stock That Does This, It’s Time to Buy

Buying into companies that split their stocks tilts the odds sharply in your favor—and buying a “splitter” that grows its payout will help you do even better.

Today we’re going to look at how you can “front run” the next dividend split for fast share-price (and dividend!) growth.

“But wait,” you’re probably thinking. “Aren’t share splits meaningless when it comes to the stock’s overall value?”

True! Let’s look at the case of Amazon.com (AMZN), which performed a share split last month. After the close of trading on Friday, June 3, the company divided each of its shares (which closed at $2,447 that day) into 20 pieces, so the stock opened at $124.79 on Monday, June 6.… Read more

Read More

My Top CEF Investing Strategy Delivers 11% Payouts, 83% Gains

I’m about to reveal my very best strategy for pocketing 20%+ upside (and 7.8%+ dividends) from high-yielding closed-end funds (CEFs).

It’s a “rinse and repeat” move that can help you grab the biggest gains from these potent income investments, lock in those wins, then sidestep the pullbacks. (I’ll also show you two ridiculously cheap CEFs throwing off massive yields up to 11.4%.)

It’s the perfect time to put this strategy in play because the Ukraine mess, and the broader market dumpster fire, have set us up with some sweet deals in CEFs.

The One (and Only) Predictor of CEF Upside

Besides massive dividends, CEFs stand out because it’s easy to tell if they’re truly oversold and ready to gap higher.… Read more

Read More

Amazon’s Biggest Warehouse Partner Is A Strong Buy

I love investing in stocks where I know my bad habits (Amazon ordering) help juice a company’s bottom line.

One of my favorite REITs falls into this camp.

It’s phones have been ringing off the hook to get ahold of its invaluable warehouse and industrial properties which are the backbone of all e-commerce operators.

Its shares have also helped investors DOUBLE their otherwise pedestrian returns from the Vanguard Real Estate ETF (VNQ) over the past three years.

Not only have its returns outpaced the market, but it has a habit of paying out special dividends that our retirement portfolios can certainly appreciate.… Read more

Read More

How We’ll Tap This Ignored Trend for 92% Upside, Accelerating Dividend Growth

Today I’m going to give you a shot at the next Texas Instruments (TXN), which has delivered a dividend that’s surged 104% since members of my Hidden Yields service bought it in 2017.

Or the next Jefferies Financial Group (JEF), whose dividend has popped 67% higher in the last year alone. 

The key to breakneck payout growth like this is investing in megatrends that reshape society. Right now, we’re tracking six:

  • Technology, as it reshapes all our lives in the COVID era.
  • Healthcare, as more people pay attention to their health (and more employers entice scarce workers with enhanced medical benefits).

… Read more

Read More

These “Great Reset” Stocks Will Fund Our Retirements

A “great reset” is underway in our economy. The talking heads bemoan the losers. We contrarians should pay attention to the winners—and their stocks—because that’s where fortunes will be made.

I’ve seen this trend unfolding firsthand. My second software company, which focused on marketing for e-commerce stores, launched a Shopify (SHOP) app in 2013. At the time this was a fledgling platform that helped retailers sell their wares online.

We were a startup ourselves, newly minted a year prior. To the outside world we described ourselves as a “spinoff” from my first software company, to give the feeling of stability. In practice, we were three dreamers working for free to get our company off the ground.… Read more

Read More

Everyone’s Wrong About This 4.6% Dividend (It Will Double)

Don’t listen to the naysayers—tech stocks are set to thrive in the coming months, and the sector is still a great place for us to go hunting for big, and growing, dividends.

Here’s one reason why: despite worries about rising interest rates, the Federal Reserve is likely to keep its key lending rate near zero. That, in turn, means businesses, and especially innovative tech players, will continue to have access to cheap money to invest in new products. 

This low-rate world also means investors starved for income will crowd into any higher-paying investments they can spot (including high-paying tech funds like the one we’ll discuss below).… Read more

Read More

A Simple 3-Step Plan for 6% Dividends, 142% Gains

The S&P 500 is still levitating, and if you’re like me, you’re starting to feel like this bull run is on borrowed time.

It’s understandable. The economy is just now stumbling to its feet, yet interest rates are already creeping higher. I think you’ll agree that we need higher borrowing costs like we need a hole in the head!

Treasury Rates Bust Through the 1% Barrier

Sure, 1.2% is a historically low number, but bear in mind 1% is an important psychological barrier, and we’re already well beyond that—and once rates broke through it, you can see how quickly they took off.… Read more

Read More

This 7% (Monthly) Dividend, With Upside, Is “2020-Proof”

Tech has taken a punch in the face this past few weeks—prompting many readers to wonder if it’s time to sell after booking some big gains in the sector this year.

No way. We’re dividend investors first and contrarians second, so we’re going to take the other side of that bet and buy this tech “mini-dip.” We’ll do it with closed-end funds (CEFs) yielding 7% (and more) that also give us a unique “double discount” to hedge any downside we might see in the coming months (this is 2020, after all) and a good shot at outperforming tech and the broader market, too.… Read more

Read More

Categories