This 8.2% Dividend Is a Smart Play on “AI Panic 2.0”

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This 8.2% Dividend Is a Smart Play on “AI Panic 2.0”

Suddenly, investors think AI is bad for software companies.

The truth? This whole story is a red herring. The real tale here is one of gains—and dividends—not losses. And we can nicely tap in with a fund sporting unique “downside insulation” and an 8% dividend, too.

Why the Software Selloff Is Overdone

Truth is, the premise of this whole argument is wrong, especially from an investment standpoint, and the reason why has a lot to do with timing: This bear market in software that’s shown up in less than a month and on news that’s, frankly, flimsy.

To wit, the selloff began because of a new product by Anthropic.… Read more

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AI Rocked Software Stocks. These 7.5% Divvies Are Cashing In

A major AI upgrade just crushed software stocks. We’re going to cash in with two “volatility-loving” dividends paying 7.5%+.

Just days ago, new AI tools were rolled out that let bots make entire apps by themselves. It’s not a big leap from there to the question a lot of people are asking now:

“Why would anyone buy software from a Microsoft (MSFT) or a Salesforce (CRM) if AI can just build for free?” 

It’s legit, and it sent these stocks tumbling. It’s frankly hard to know which breakthrough will come next, though financials and office REITs have been pressured in the last couple days.… Read more

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This Flawed Chart Could Spark a 2026 Selloff

Every year, the stock market has a theme. And I’ve got a pretty good idea of what 2026’s will be.

Simply this: If you buy stocks in the new year, your return will be zilch—at best—for a decade. Maybe more.

Why do I say that? Because the market’s price-to-earnings (P/E) ratio is high by historical standards.

Trouble is, most people are reading this popular indicator all wrong. That disconnect (and the fear it’s starting to cause, which could get worse in 2026) is setting up a nice short-term buying opportunity for us.

Valuation worries are being amplified by this chart from Apollo Global Management, which could easily become the poster child for fearful investors next year:

It comes from Apollo’s chief economist, Torsten Sløk, who notes that the estimated returns we should expect from the S&P 500 over the next decade are zero.… Read more

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1 Simple Step for 26% Dividends in 2026

Is your portfolio on track to yield 26% in 2026?

If not, why not?

Of course, most stocks and funds don’t pay 26% on their own. But it’s a quick fix to get many of them to.

This makes a big difference to our retirement goals: a 26% return on a million-dollar portfolio is $260,000 in cash flow per year! Without tapping the principal.

Or $130,000 in cash flow on $500K. You get the idea. With 26% coming in, it’s a lot easier to retire.

How can we boost our investment income like this? Let’s take boring ol’ SPY—SPDR S&P 500 ETF Trust (SPY)—as our first example.… Read more

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Yes, AI Is Coming for Jobs But These 6%+ Dividends Are a “Silver Lining”

By now, it’s glaringly obvious: AI is replacing workers. And it’s boosting corporate bottom lines as it does.

I call this the “growth-without-hiring” trend, and it’s accelerating. Today we’re going to grab our share in the form of big dividends (up to 8.1%) and upside, too.

Latest Payroll Report Tells a New (Yet Familiar) Story

The latest evidence that “growth without hiring” is the real deal? The September ADP payrolls report, which showed that companies cut 32,000 positions. The August numbers were also revised to 3,000 losses, not the 54,000 gains originally reported.

With numbers like those, you’d expect the US to be in recession, or close to it.… Read more

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AI’s Double-Discount Paychecks: The Tech Covered-Call CEF Yielding 7.8%

A market on a precipice.

That’s the vibe around stocks right now, and I’m guessing you’ve felt it, too. On the one hand, the S&P 500 is up 14% in the past year, a very solid performance (and for the record, I see more gains ahead).

Yet volatility has returned, and it feels like we could be on the verge of another selloff. So what do we do right now?

We’re going to look at a closed-end fund (CEF) that profits from short-term volatility. In fact, this one harnesses the energy that choppy markets throw off and “converts” it to a hefty dividend stream.… Read more

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Will Stocks Drop Again? Here’s My Take (and an 8.5% Dividend to Profit)

Volatility is back! And we contrarians know what to do: Get ready to buy.

And we don’t have to try to time the depths of the next selloff, either, because the three 7%+ paying, “volatility-loving” dividends we’re going to talk about are perfect for this market.

They’re all closed-end funds (CEFs) that see their cash streams grow when markets get skittish. Their secret? They sell covered-call options on their portfolios.

This is a smart, low-risk way they can generate extra income—and send it our way as 7%+ dividends. That’s because these funds charge investors a “premium” for the “option” to buy their holdings at a fixed time and date in the future.… Read more

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Will Stocks Drop Again? Here’s My Take (and an 8.5% Dividend to Profit)

Volatility is back! And we contrarians know what to do: Get ready to buy.

And we don’t have to try to time the depths of the next selloff, either, because the three 7%+ paying, “volatility-loving” dividends we’re going to talk about are perfect for this market.

They’re all closed-end funds (CEFs) that see their cash streams grow when markets get skittish. Their secret? They sell covered-call options on their portfolios.

This is a smart, low-risk way they can generate extra income—and send it our way as 7%+ dividends. That’s because these funds charge investors a “premium” for the “option” to buy their holdings at a fixed time and date in the future.… Read more

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Turn Your 1% Stocks Into 35% Yield Machines

Holding low-yielding shares? Here’s how to boost dividends up to 35%—no buying or selling needed.

We’ll use boring ol’ SPY—SPDR S&P 500 ETF Trust (SPY)—as our first example. The fund yields a sleepy 1.1%, yet it’s the most owned ticker in America.

Here’s how we fix SPY’s yield problem.

On Monday, I received an email from OptionSignals, the timing system I developed for Contrarian Outlook readers who write covered calls and sell puts to generate income. OptionSignals tells us when it is a promising time to write calls or sell puts on an index, fund or individual stock.… Read more

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Will Trump Fire Powell? How to Protect Yourself With a Cheap 8.4% Dividend

Fire Powell? Keep him around? The question never seems to go away—and the markets, fueled by the so-called “TACO” trade (“Trump always chickens out,” as the acronym goes), are shrugging it all off.

But what if Trump calls Wall Street’s bluff? Luckily, there are not one but three ways for us to hedge ourselves from the “TACO trade” going cold. Below, we’ll look at all three and I’ll name my favorite of this trio. Plus we’ll grab ourselves tidy dividends of 7%+, too.

Powell Has Been On His Way Out (or Not!) for Months

If you’re experiencing déjà vu, it’s because this same story happened back in April, and it sent stocks plunging back then.… Read more

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