The Fed is Out to Get These 5 Blue Chip Dividends

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Lazy financial writers like to say that higher bond yields will hurt dividend stocks. This blanket statement may sound reasonable, but it’ll cost you money if you take it at face value.

Pundits have called sleepy dividend stocks like General Mills (GIS) “bond proxies” in recent years. GIS has paid 3% (more or less) over the last three years. That compared favorably with the 10-year note, which paid 2% (more or less) over that time period.

So, the story goes, investors had been buying stocks like GIS instead of safe bonds like Treasuries to scrape an extra 1% or so. But with Treasuries rallying to 3%, these same investors have “demanded” a higher yield from GIS.…
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A few weeks back, I revealed my proven 3-step process for a “do-it-yourself” 10% dividend yield.

I’ll sum it up for you in 5 words: buy stocks with “accelerating” dividends. That is, payouts that grow faster and faster every year.

It’s a double win!

Take Royal Caribbean Cruise Lines (RCL), a stock I focused on in a March 6 article (and still like today). Plenty of dividend investors look at RCL’s current dividend yield—a meager 2.0%—shrug and walk away.

Terrible move!

I’ll show you why in 2 charts … well, make that one chart with 2 different layers.

Let’s start with this one:

“Accelerating” Payout Drives a 500% Income Boost!
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The Federal Reserve’s increased aggression over the past couple of years has finally come home to roost. The yield on the 10-year Treasury recently rocketed above 2.8% – a four-year high – while the 30-year cleared the 3% mark.

That’s bad news for investors in many traditional dividend-paying blue chips.

The 10-year T-note might as well have been a “high-yield” savings account the past few years, offering almost laughable income of less than 1.4% as recently as 2016. That kind of environment gives investors “yield goggles,” making even no-growth stocks look attractive as long as they’re paying out near 3%.

Just look at the performance of the Consumer Staples Select Sector SPDR (XLP) – a collection of companies such as Procter & Gamble (PG) and Coca-Cola (KO) – against the 10-year Treasury rate.…
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Interest rates are soaring—so dividend stocks are yesterday’s news. Right?

Yes and no.

While some double-digit paying dogs should be sold immediately, other dividend growers should be bought today for 25%+ upside in 2018.

The truth is, the 10-year Treasury yield’s recent run to 2.7%, a 13% rise since January 1, has tapped the brakes on the stock-market rally and hit high-yield plays like REITs hard.

10-Year Rises, High-Yielders Wobble

If you hold high-yielders in your portfolio, you likely know what I’m talking about.

So should you be worried? No way.

In fact, now is the time to buy. I’ll show you 2 dividend plays that should be high on your list shortly (including a bargain real estate play with a 5.5% yield and incredible dividend growth).…
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Let’s face it: brands are dead—and that’s terrible news for the 4 household names (and their landlords) we need to talk about today.

Research from Scott Galloway, founder of digital-research firm L2, tells the tale.

Galloway looked at the 13 S&P 500 stocks that have beaten the market for five straight years and found something shocking: just one, Under Armour (UA), is a consumer brand.

And as Galloway points out, there’s no way UA will keep that run going.

UA: The Last Brand Standing—for Now

The other 12 names on the list are mostly innovators that have sliced into old-school businesses and flipped them on their heads—think Facebook (FB), Salesforce.com (CRM) and, of course, Amazon.com (AMZN).
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A bull market that’s already long in the tooth is staring political and even natural headwinds right in the eyes. Valuations are stretched. And even some of Wall Street’s biggest names – three of which I’ll warn you about today – are increasingly looking vulnerable to massive pullbacks should the market buckle under pressure.

(I’ll also give you seven dividend growers with 100%+ upside to buy instead later on.)

Mother Nature is pulling the emergency brake on Hurricane Harvey, which hovered over Texas for days, delivered what some experts estimate is between $150 billion and $180 billion in damages. One estimate of $190 billion would translate into a -1% hit to the U.S.…
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A bull market that’s already long in the tooth is staring political and even natural headwinds right in the eyes. Valuations are stretched. And even some of Wall Street’s biggest names – three of which I’ll warn you about today – are increasingly looking vulnerable to massive pullbacks should the market buckle under pressure.

(I’ll also give you seven dividend growers with 100%+ upside to buy instead later on.)

Mother Nature is pulling the emergency brake on Hurricane Harvey, which hovered over Texas for days, delivered what some experts estimate is between $150 billion and $180 billion in damages. One estimate of $190 billion would translate into a -1% hit to the U.S.…
Read more

Read More

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