This “Low Drama” 5-Stock Portfolio Yields 7.2%

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This “Low Drama” 5-Stock Portfolio Yields 7.2%

Dividends over drama, please. Like these five steady stocks that yield 7.2%, on average.

Back in school they taught us that to increase returns, investors had to take on additional risk. This was a financial engineering class at Cornell University, by the way. The prof should have known better, but he didn’t, because he was a researcher and not an actual investor.

It’s a common mistake in academia, and those who try to invest “buy the book.” The book says more beta means more returns. Well, this text is often wrong!

Big dividends and low volatility are a beautiful combination.

Volatility can be measured several ways.… Read more

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Will This REIT Portfolio – up to 9.3% – Finally Get Off the Ground?

We income investors like REITs (real estate investment trusts) because they are obligated to dish most of their profits to us as dividends. Today we’ll discuss five with fat yields between 8.3% and 9.3%.

When to buy REITs can be tricky. Generally speaking, we don’t want to buy them before rate hikes. Higher rates make money more expensive. REITs thrive on cheap money. So, the recent rate hiking cycle has been bad for REITs-at-large.

Rates and REITs Moved in Opposite Directions

Rate hikes appear done, which usually means it is time to buy REITs. After all, the Fed’s next move is likely to be a cut.… Read more

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22 REIT Dividends I Love, Hate for 2022

If you’re as nervous about the 2022 edition of the stock market as I am, we should take this holiday week to review reliable REIT dividends.

REITs (real estate investment trusts) are stocks that dish 90% of their profits as payouts. This makes them ideal income plays for retirees. Rather than buying shares and “hoping” they’ll go up, we can lock in quarterly (or even monthly!) dividends—real cold cash!—with REITs.

For example, my favorite REIT for 2022 yields 4.9%. This equates to $4,900 per year on a $100K position, a great start to the year. Plus, we have the opportunity for price gains—for a total return of 10% or so.… Read more

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This Safe 5-Stock Healthcare Portfolio Yields 5.5%

Healthcare—along with consumer staples (“buying stuff”) and utilities (“keeping the lights on”)—provide portfolio stability. Plus, they usually pay dividends, too!

Of the three safety sectors, healthcare is a steady growth market, too. Consider these stats from the Centers for Medicare & Medicaid Services:

  • National health spending is projected to grow at an average annual rate of 5.4% for 2019-28 and to reach $6.2 trillion by 2028.
  • National health expenditures are projected to grow 1.1 percentage points faster than gross domestic product per year during that same time period.
  • Between 2019 and 2028, healthcare’s share of the economy will rise from 17.7% to 19.7%.

… Read more

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The Best Way to “Trade-War Proof” Your Portfolio (with 4.3%+ Yields to Boot!)

The average American can’t afford to retire.

At the moment, the median balance among those 65 and older is $58,035, according to CNBC.  Averaged over a 20-year period, that’s only $2,901.75 a year. Worse, the median private pension is $9,376.  Social security averaged just over $1,400 a month in 2018.

You’d be hard pressed to find anyone that can live on that.

What makes the situation far more difficult is the state of the stock market.

It’s not as if you can depend on your average stock anymore.

With the trade war escalating, it’s been a confusing time for investors.

Contradictory claims from both sides have given way to extreme optimism, and pure grief when all goes south. … Read more

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The 3 Best Big Dividends (Up to 9.5%) for This Uncertain Market

Dividends or growth? Why choose?

There’s a widespread belief that stocks and funds can deliver red-hot capital gains or substantial income, but not both. Fortunately for us that’s not true.

It is possible to collect big dividends and capital appreciation. I’m going to show you how to safely collect 32% in total returns in less than a year from a big dividend payer. And while this “easy dividend money” has been made, we’ll discuss three more stocks yielding around 8%-9% that can deliver 20%+ in dividends and upside over the next twelve months..

Income investors like you and me should focus on total returns, which are made up of dividends and price appreciation.… Read more

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3 MVPs of the REIT Super Bowl

Each June, the National Association of Real Estate Investment Trusts (NAREIT) hosts a conference that brings all of the key players in the sector together. For REIT investors, it’s the equivalent of the Super Bowl and it offers a window into who’s poised to perform well in the second half of the year and beyond.

This year, the focus in real estate remains about mergers and acquisitions, as small- and mid-range companies are combining to better compete with the larger players. Even the REITs that plan to go it alone for the time being are raising capital by selling non-core assets, with private equity and foreign capital bidding up prices.…
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These 7%+ Dividends Are Growing 10%+ Annually

Many investors think they must choose between income and growth.

Why not have both?

Many stocks offer varying degrees of growth and income, and in a few rare cases – such as the three stocks yielding between 7% and 9% that I’m going to share with you today – they offer high levels of both.

When we talk about “growth,” we can mean any number of metrics. It can be as simple as sales, but that’s far from the only metric that matters.

The growth I want to look at today is on the bottom line. A company can grow sales all day by spending inordinate amounts of money on marketing and R&D.…
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My Top 3 Rules for Safe 7% Yields and 20% Upside in REITs

Buying real estate investment trusts isn’t like buying other stocks; despite their high yields and big long-term returns, REITs require a bit more attention and a bit faster action than more popular dividend-payers, like blue chips and dividend-growth stocks.

But it’s more than just speed and care. To win with REITs, you need to follow three rules—and I’m going to show you those today.

These REIT rules have never been more important than they are now. Broadly, REITs are getting more valuable, but the market is getting more scared of them. This disconnect makes no sense and is partly the reason why two extremely healthy and valuable REITs—Sabra Health Care REIT (SBRA) and Care Capital Properties (CCP) recently merged.

In their announcement, both firms said the merger would save $20 million in costs annually, provide greater diversification and give the new company more cash for expansion. …
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