They’re Small. They’re Cheap. And They Yield Up to 14.7%.

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They’re Small. They’re Cheap. And They Yield Up to 14.7%.

The index huggers are, rightfully, fretting about the only position they own, the S&P 500, which is heavy on Nvidia (NVDA). The soon-to-be-fallen angel is the third largest component of the index at 6.3%.

“America’s ticker” SPDR S&P 500 ETF (SPY) yields only 1.2% and trades for 22-times earnings. The S&P SmallCap 600, meanwhile, which nobody owns, trades for a more reasonable P/E of 16.

And select small caps even pay serious dividends. I’m talking about yields between 9.1% and 14.7%.

But are these value stocks? Or are they merely cheap for a reason? Let’s explore a group of five small caps paying big dividends.… Read more

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Why Does Wall Street Hate These 6%-13% Dividends?

What’s better than a big dividend?

A hated high yield.

Especially when the disgust comes from Wall Street analysts themselves. You know, the fanboys who follow the company for a living.

Analysts are paid to be bullish. Let’s face it, nobody wants to hear from a bear. Here’s how unusual is it for analysts to be down on a stock?

There are just two consensus Sell calls across the entire S&P 500. Two.

So, when one of the suits says a business is bad, we should take note, right?

Wrong.

Analysts tend to be trend followers. And as they say in the business, the trend is your friend until it ends.… Read more

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Magnificent 7 Move Over: “Dividend 6” Yields Up to 8.3%

Magnificent Seven? Tired.

Dividend Six? Wired.

Plain vanilla investors fawn over chipmakers and AI stocks. They hope they can buy them high, and sell them higher.

Contrarian income investors like us? We focus on the companies that support the AI hype. The “pick and shovel” providers. A “Dividend Six” that plays on AI and pays $26,000 to $41,500 in dividends alone on a $500K stake.

With that we’ll say move over, Magnificent Seven—a term coined by Bank of America’s Michael Hartnett (and inspired by the classic Sturges Western) to describe the market’s predominant tech names.

Those stocks? Microsoft (MSFT), Apple (AAPL), Facebook parent Meta Platforms (META), Amazon.com… Read more

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How to Earn 5%-7% Yields … From Tech?

Our contrarian investing playbook is simple, but not easy.

We buy stocks that others are neglecting. At least currently! This means we secure prices when they are low and dividends when they are high.

Big tech stocks have been bid to the moon recently. But not all Nasdaq plays are expensive. The rally has been narrow, and believe it or not, we have five tech plays paying up to 6.7% available today.

This is a lot of yield in a sector that, sadly, pays less than 1% at large:

Tech Is Back to Yielding Less Than 1%

This is why the sector ranks tenth in dividend yield.… Read more

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Analysts Hate These Massive Dividends Up to 18%. Should We?

We contrarians profit on analyst dislike.

Note that I did not say like. Dislike is where the dividend money is at!

Analyst ratings are a wonderful buy signal. Vanilla investors purchase payers that are widely liked—and wonder why every downgrade dents their pocketbook.

We don’t care about popularity. Heck, we prefer stocks that are far from being in analyst good graces.

Give us the disgraces. And we’ll collect our dividends while we sit back and wait for the analyst upgrades to follow.

It’s not easy to find the “uncool kids” on Wall Street. The school of S&P 500 is a joke.… Read more

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