This 14.2% Yield is Too Good to Be True (But This 9.5% Payout Isn’t!)

Our Archive

Search completed

This 14.2% Yield is Too Good to Be True (But This 9.5% Payout Isn’t!)

Most dividend investors understandably love the idea of an 8% No Withdrawal Portfolio. It’s a simple yet “game changing” idea that you don’t hear much from mainstream pundits and advisors.

Find stocks that pay safe 7%, 8% or more and you can retire comfortably, living off dividend checks while your initial capital stays intact (or even appreciates).

Now this strategy is a bit more complicated than simply finding 8% yields and buying them. Granted the recent stock market pullback has benefited investors like us because we can snag more dividends for our dollar. Yields are higher overall, and that’s a good thing.… Read more

Read More

These 1-Click “Tax Loopholes” Yield Up to 9.8%

If pricey stocks and low dividend yields have you frustrated, it’s time to consider publicly traded (and perfectly legal) “tax loopholes” that yield up to 9.8%. They’re as easy to buy as any stock or fund – in fact, they are stocks. They just happen to pay more.

Private equity investing is a proven way to print money. Problem is, it’s typically expensive for individual investors like you and me to get involved. Private equity minimums range anywhere from $10 million at the high end to “just” $250,000 depending on the fund. Frankly, that’s more than most normal retirement investors can or even should put in any one investment.… Read more

Read More

Collect $3,333 in Monthly Dividends on Just $500,000 for Life

Most investors with $500,000 in their portfolios think they don’t have enough money to retire on.

They do – they just need to do two things with their “buy and hope” portfolios to turn them into $3,333 monthly income streams:

  1. Sell everything – including the 2%, 3% and even 4% payers that simply don’t yield enough to matter. And,
  2. Buy my 8 favorite monthly dividend payers.

The result? $3,333 in monthly income every month (from an average 8% annual yield, paid every 30 days). With upside on your initial $500,000 to boot!

Traditional dividend stocks simply can’t keep up. Let’s take a 4-pack of popular dividend aristocrats to map how much they’ll pay investors through summer.…
Read more

Read More

These 2 Stocks Are Circling the Drain: Sell Now

The S&P 500 has already increased in value by over $1 trillion in 2018—and January isn’t even over yet!

What’s behind this incredible bull market isn’t euphoria or hysteria—it’s actually sound investing principles. As I wrote in a January 18 article, the bull market is being driven by the best possible trend: higher earnings and sales for America’s best companies, which is itself the result of improving economic conditions for everyday Americans.

Parties ultimately end, of course. And this one is no different—the bull market is being driven by a solid and reasonable belief that American companies will go up in value.…
Read more

Read More

Warning: These 18% Dividends Are a Trap Ready to Spring

If you’re a dividend fan and you spot an 18% yield, you’re going to sit up and take notice.

But your radar will also probably go up for another reason: you know outsized payouts like that pretty much always come with outsized risk too.

Which brings me to the weird funds I’m going to show you today.

Their 18% average yield masks something shocking: they’re not only dangerous but they’re not even income investments! They’re something else entirely—and if you fail to pick up on that and buy, they could blow a hole in your retirement portfolio.

Let me explain, starting with…

Where We Found These 18% Payouts

The funds I’m talking about are called exchange-traded notes (ETNs), a close cousin of exchange-traded funds (ETFs), another asset class I recommended staying clear of in a September 12 article.…
Read more

Read More

3 BDCs Paying 10%+: 2 Hopefuls, 1 Hopeless Wreck

Business development companies (BDCs) are dividend powerhouses that typically yield anywhere from high single digits to low double digits. And in fact, the group of three BDCs I’m going to show you today each throws off a yield of more than 10%!

But most investors – even income-seeking folks – aren’t familiar with them. If that includes you, or you’re just looking for safe 10% yields or better, read on.

BDCs were created in the 1980s by the U.S. government to help small- and midsize businesses finance their growth – via debt, equity and other financing. And by doing so, they also help create American jobs.…
Read more

Read More

Three BDCs Paying 12% to 16%: 1 to Buy, 2 to Sell

Most business development companies (BDCs) have low profiles on Wall Street. Their relative obscurity makes them good vehicles for banking high yields – in fact, today we’ll discuss three that pay between 12% and 16% annually.

BDCs invest in small- and midsize businesses, the building blocks of entrepreneurial America. They were created by the government in the 1980s to help grow up-and-coming companies in a bid to stimulate business and create jobs. They provide debt, equity and other forms of financing to businesses that larger banks and investment firms shy away from.

They’re also income machines by law.

Their regulated structures require them to dole out 90% or more of their taxable income to shareholders in the form of dividends.…
Read more

Read More

Categories