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

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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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