4 Dividend Blue Chips Everyone Owns (But Shouldn’t!)

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4 Dividend Blue Chips Everyone Owns (But Shouldn’t!)

How much money do you need to retire on dividends alone?

This is a better question to ask than the typical “magic number” formula that most “first-level” thinking firms tout. Let’s review why their approach is fatally flawed, so that we can derive a more reliable method of our own based in actual reality (and funded by actual dividend payments.)

Fidelity Says What?

“You should aim to have 10 times your final salary in savings.”

Buy why? I suppose they are claiming that, if you earned $100,000 in your final year working, that you’ll want to earn this much in income every year for the rest of your life.…
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5 Hated Stocks That Will Soar With Interest Rates (and Pay 6% in Cash!)

If you’re like most dividend investors, you’re probably keeping a nervous eye on bond yields right now.

And, well, you should be—but only if you own low-yielding (or slow-growing) Dividend Aristocrats like, say, PepsiCo (PEP).

But if you buy (or already own) the 5 “undercover” high yielders I’ll show you at the end of this article, I have great news for you. You can ignore inflation, bond yields and the Fed and simply keep on collecting your fat dividend checks.

In fact, this overdone selloff has given us an open window to buy more!

Bond Yields: 1, PepsiCo: 0

Before we get to that, back to PepsiCo.…
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4 Blue Chip Dividend Payers to Sell Now (And 7 To Buy Instead)

Tax reform has been signed into law, giving the market a booster shot as we kick off 2018. Republicans took a hatchet to the corporate tax rate, which should translate into more profits, which in turn should trickle down to investors in the form of earnings-driven gains, buybacks and dividends.

Generally speaking, that’s fantastic news for anyone holding blue-chip dividend stocks. But that’s not the same thing as saying every last well-known income play is worth carrying right now.

They’re not.

Eventually, some blue-chip stocks get caught in a rut where the growth that made them a household name in the first place starts to disappear.…
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3 Tired Dividend Aristocrats You Must Sell Now

If you put your portfolio on autopilot over the summer, you need to dial back in yesterday.

Because you’ll need a sharp eye and a quick hand to dodge two pitfalls that could swamp regular folks now—this month!—and in the long run.

For the first one, look no further than the calendar.

I’m talking about seasonality, and the fact that September is typically the worst month for stocks.

The truth is, the market’s steady grind higher has stalled: through the first 5 trading days (and with 15 more to go), the Dow is off 0.8% and the S&P 500 is down 0.4%.…
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