This “Dividend-Buyback Feedback Loop” Is the Key to 148%+ Returns

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This “Dividend-Buyback Feedback Loop” Is the Key to 148%+ Returns

There’s a $600-billion river of cash flowing straight out of Corporate America—and straight into some dividend investors’ pockets. Today we’re going to grab our share.

Companies don’t make much of the cash outlays we’re going to talk about. You might catch a line or two about them in an earnings release, but that’s it. That’s because they’re trying to stay below the radar of the Biden Administration, which is starting to tax these payouts, and has even threatened to quadruple the slice they’re taking now.

As for us, we’re not really focused on these cash payouts themselves (though we’ll happily take our share!).… Read more

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A Smart Long-Term Strategy That Delivered 870% Dividend Growth

Today I’m going to show you a two-part dividend-growth strategy that actually made money for one group of investors in the disastrous year that was 2008.

Before we get into the specifics on this technique and an example stock, I want to level with you: I do believe that stocks are likely to head lower in the coming weeks.

That said, if we look one year out from today, I like our chances. But we’re going to give ourselves an added level of security by purchasing stocks with these two traits:

  1. Strong—and better yet accelerating—dividend growth, because a rising payout is the No.

… Read more

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5 Ways to Find the Best Long-Term Dividend Stocks

We love dividend stocks because they pay us now. But hey, I’m greedy. And when I research income plays, I want more than just those payouts.

I’m looking for price gains, too. Give me a dividend with a stock that could potentially double, and we’re talking.

These types of stocks are rare, but they’re not impossible to find. They tend to share five key “dividend double” characteristics. Let’s discuss them now.

Dividend Key #1: Annual Dividend Growth

The core trait of an excellent long-term dividend holding is dividend growth, for numerous reasons.

For one, dividend growth is a pretty sure sign that the underlying company has the financial fortitude to pay the bills.… Read more

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2 Big Dividend Hikes Set to Drop Soon (Tickers Revealed Below)

Now is the best time to roll out our favorite dividend “hack.” It’s a sneaky-smart strategy that lets us “time” the market for soaring dividend payouts (and a steady drip of price gains, too).

Our plan consists of two simple steps, which we’ll look at now. Then I’ll name two stocks that are perfect for this strategy. Both look set to roll out big dividend hikes soon.

Step 1: Buy Just as a Payout Hike Is Announced

We’ll start by “timing” our buys just as dividend hikes are announced. That’s a veteran move because a company’s stock almost always rises with its payouts—a predictable pattern I call the Dividend Magnet.… Read more

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How My “Dividend Sell Signal” Can Help You Avoid 40%+ Losses

I hear from readers of my Hidden Yields dividend-growth service all the time—and many are wondering why their “dividend guy” has suddenly become a “cash guy”!

Truth is, there’s been nothing for us to buy! We’ve unloaded 17 positions since last October in Hidden Yields and are sitting on a big cash pile—waiting for our chance.

And that chance is coming. In fact, if you’re using dollar-cost averaging—or investing a fixed amount of money on a fixed date, in other words—to build your portfolio, now is a great time to put money toward the safest stocks you own—especially as we get closer to “stock season”: the period from November to May, when markets are typically stronger.… Read more

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How My “Dividend Sell Signal” Can Help You Avoid 40%+ Losses

I hear from readers of my Hidden Yields dividend-growth service all the time—and many are wondering why their “dividend guy” has suddenly become a “cash guy”!

Truth is, there’s been nothing for us to buy! We’ve unloaded 17 positions since last October in Hidden Yields and are sitting on a big cash pile—waiting for our chance.

And that chance is coming. In fact, if you’re using dollar-cost averaging—or investing a fixed amount of money on a fixed date, in other words—to build your portfolio, now is a great time to put money toward the safest stocks you own—especially as we get closer to “stock season”: the period from November to May, when markets are typically stronger.… Read more

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This Gimmicky Dividend Strategy Will Cost You Money (Do This Instead)

These days, everyone is looking for safety—and that’s got some folks pondering some pretty, er, unusual strategies that seem secure but are in fact anything but.

One such strategy is known as dividend capture, which sounds like a way to bag a company’s quarterly cash dividend without taking the risk of owning the shares. I don’t like the name because it sounds like something we dividend investors should be interested in. I don’t like the approach itself because it doesn’t really work.

The theory seems innocent enough:

  1. Find a stock that is about to pay a dividend,
  2. Buy it before it’s “ex-dividend date,”
  3. Pocket the payout, and
  4. Sell the shares after.

… Read more

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My Advice? DON’T Buy Dividend Stocks (Unless You Can Answer These 3 Questions)

Here’s some advice you might be surprised to hear from an investment-newsletter writer: Do NOT buy stocks right now.

That is, unless you can answer an emphatic “yes!” to these three questions:

  1. Are you investing for the long term?
  2. Are you investing in stocks that are not only growing their dividends but accelerating that payout growth?
  3. Are you only investing a small portion of your holdings (and ideally keeping the bulk in cash to ride out this storm)?

If you answered yes to all three, great! I’ll show you what you must demand in any dividend grower to ensure you’re locking in a safe payout while protecting yourself from today’s Fed-driven market panic.… Read more

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Bull or Bear, This Dividend Stock Doesn’t Care

I remain a big fan of cash right now.

I know, I know. I’m not supposed to say this in a stock-focused column like this.

“But Brett,” I can hear the rebuttal. “We’ve been smartly selling the rips. My cash is burning a hole in my pocket.”

“And I’m here for the income. Shouldn’t I buy something?”

Not yet. We contrarians shouldn’t be in a hurry to time the bottom of the market.

There will be free and fast money on the other side of this bearish storm. Every correction eventually ends. For now, we buy lightly. And enjoy our comfortable seat.… Read more

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1 Dumb Dividend Capture Strategy, 2 Better Income Ideas

Our beat here at Contrarian Outlook is dividends. We seek to collect them using proven income strategies.

Dividend stock investing isn’t easy, even though it looks so on the surface. (Find a high yield, and buy it!) We’ve all had our heart broken by one or more “disappearing” dividend payers in the past. These delinquents are the reason we place such a premium on dividend security.

One secure-looking strategy is (unfortunately) known as dividend capture. I don’t like the name because it sounds like something we should be interested in. I don’t like the approach itself because it doesn’t really work.… Read more

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