5 “Invisible” Dividends Up To 16% That Most Screens Miss

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5 “Invisible” Dividends Up To 16% That Most Screens Miss

“Special” dividends fly right under Wall Street’s radar. Which is great for contrarian income seekers like us. These payouts aren’t officially “counted” by most mainstream websites!

It’s a big accounting error in our favor because these dividends can really add up. Today we’ll discuss five special dividend payers with yields up to 16%.

Most websites won’t report 16%, of course. For whatever reason, they just can’t compute specials!

Special dividends are technically considered one-time payouts. So, vanilla websites assume they won’t happen again, and thus leave them out of their yield calculations.

But there’s more than one kind of special dividend.… Read more

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Invest Like VCs and Earn 13.5% Yields … On Average!

Buying a business development company (BDCs) is kinda, sorta like investing like a venture capitalist (VC).

Minus the arrogance. And the lack of yields!

I was 26 when I realized that VCs were just regular guys and gals. Well, let’s be honest—mostly guys. They didn’t necessarily know anything special. But VCs play the part, sitting in their Steelcase chairs and short sleeved polo shirts while it’s 60 degrees out here in Northern California.

BDCs, on the other hand, are investments for the people. Plus, they pay—up to 15% in dividends!

Here’s a quick primer. BDCs lend to small and midsized businesses that the big banks either won’t touch.… Read more

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Invest Like the “Smart Money” (And Get Paid 12.4% To Do So)

This retirement portfolio pays 12.4%. Which means, on a million-dollar stake, these stocks dish $124,000 in dividend income alone.

That’s fantastic, needless to say! But are these stocks safe enough to actually retire on?

After all, we’re not looking to collect a 12.4% yield and lose it in price. Heck, we’re not interested in losing capital at all. We want the 12.4% with stocks that are at least steady.

Most common stocks would be in trouble if they paid 12.4%. But these are business development companies (BDCs), which yield so much because they have a special carve out from Uncle Sam.… Read more

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How to Turn Rising Rates Into a 9% Annual Payday

Anyone up for a 10.2% payout? One that is powered by profits that should actually rise alongside interest rates?

If so, I’ve got a three-letter acronym for us:

B-D-C.

Business development companies provide debt, equity and other financing to small and midsized companies, effectively acting as banks because banks often don’t want to take on that level of risk. And because they’re primarily investing in companies that aren’t on public markets, BDCs serve as de facto private equity investments—but ones that retail investors like us can get in on!

BDC structures are similar to real estate investment trusts (REITs). Both were created by Congress—REITs in 1960, BDCs in 1980.… Read more

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Five 8-10% Yielders That Can Actually Grow Your Portfolio, Too!

Many investors think they need to choose between current income and price upside. They don’t.

In a moment, I’ll highlight five stocks paying between 8% and 10% with 40% upside to boot.

Let’s face it – growth matters. It’s the best way to retire on a nest egg of just $500,000:

How to Stretch Your Investment on $500,000

The table above assumes a nest egg of half a million dollars that yields 8% a year, and absolutely no dividend reinvestment – here, you’re putting every cent of income into your pocket. Look how much that $500,000 expands over just a few years as you’re able to achieve more capital gains out of it. Even if you’re conservative and want to assume just 4% in annual growth out of your portfolio, that’s an extra $240,000 after 10 years – a much better position to be in than if you settled for a no-growth portfolio by selecting subpar high yielders …
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