How to Double Your Dividends (and Then Some!) Starting This Year

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How to Double Your Dividends (and Then Some!) Starting This Year

If the market dumpster fire we trudged through in 2022 taught us anything, it’s that we must swing our portfolios away from this:

We’re Swapping Share-Price “Flameouts” Like This…

That’s the chart of “America’s ticker”—the SPDR S&P 500 ETF Trust (SPY)—last year. I call SPY “America’s ticker” because it’s by far the most popular way to track the S&P 500, a staple in many folks’ portfolios.

But its popularity does not translate into safety. Just holding this simple index fund last year meant taking a 20% haircut—with plenty of heart palpitations along the way! And even with this year’s rebound, the S&P 500 is still 4% below its January 2022 levels as of this writing.… Read more

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Our 3-Part Strategy for 20%+ Dividend Growth in 2023

If 2022 taught us anything, it’s that we need to swing our portfolios away from this:

We’re Fading “Cardiac” Share-Price Action Like This … 

That’s the chart of “America’s ticker”—the SPDR S&P 500 ETF Trust (SPY)—last year. I call SPY “America’s ticker” because it’s by far the most popular way to track the S&P 500.

But its popularity does not translate into safety. Just holding this simple index fund last year meant taking a 20% haircut—with plenty of heart palpitations along the way! That’s why we want to shift our portfolio returns toward the smooth and steady growth of dividends:

… And Toward the Serene Upward Drift of Dividend Growth

That’s more like it!… Read more

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This 9.2% Dividend is Ready for Rising Rates and Fed Hikes

Well, that escalated quickly.

We contrarians have been ready for rising interest rates—and long-term rates have indeed begun the year with a moonshot.

The Federal Reserve has been a big buyer of US bonds since the spring of 2020. If it weren’t for this “whale” buying $80 billion in bonds per month, long rates would likely be higher already.

How much higher is anyone’s guess. But now that the Fed is “tapering” its monthly purchases from $80 billion all the way to zero, everyone is rushing to place bets. And income investors are speculating that a fair rate for the 10-year is higher than here.… Read more

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Rising Rate Dividend Plays Paying Up to 9.8%

On Sunday night, our old friend exclaimed to my wife and me: “How have you all been??”

It’d been, well, almost a year since we’d been to her bar. We had plenty to catch up on with our drink-slinging pal as we sipped and snacked. Back on the home front, our babysitter had recently resurfaced and appeared to have bedtime under control. It was nice to have a throwback evening, the type we all took for granted just 12 months ago.

In the interim, many income investors have, likewise, taken low long-term rates for granted. Not we contrarians, of course.… Read more

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