Beware This 13.8% and 14.8% Dividend Disaster Duo!

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Beware This 13.8% and 14.8% Dividend Disaster Duo!

We’re heading towards the most telegraphed recession of all time. At least in recent memory.

So should we sell everything? Not exactly. Granted, recessions are usually bad for stocks. Vanilla investors who own nothing-but-ETFs are in a tough spot.

But since you’re reading this, I assume:

  1. You pick stocks better than a robotic ETF.
  2. You’re not scared of a stinkin’ recession. You’re here looking for high-yield exceptions to the “sell everything” rule.

I appreciate that about you, my fellow contrarian. If I thought rules applied to me, I would have made it past age 26 in Corporate America! This is why we get along so well.… Read more

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Should We Own These 11 Dividends Over 7%? No, No, No

Sell ‘em if you got ‘em.

And c’mon, we all have ‘em.

Let’s think back a few months. Which stocks are we still holding now that we wish we had sold then?

I’m talking about the dividend dogs that, if we’re being honest, are not deserving of long-term positions in our retirement portfolios.

These mutts have had a fun summer—good for them (and us). Now let’s find them a nice home in another portfolio.

Why the deadline? September swoons are common. The Wall Street guys return from their Hampton homes and sell everything that rallied in August.

The summer rally (recently ended?)… Read more

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Dirt-Cheap Dividends: 5 Payouts Yielding 4%-11%

Thanks to the market’s selloff, we finally have some dividend deals out there. In a moment, I’ll highlight a five-pack of sweet-paying dividend stocks (as in, 4.0% to 11.3% yields) that are cheap cash cows.

It’s important that we focus on value, cash flow and yield as we cherry pick the bargain bin. More pain is likely ahead for the broader markets.

Stocks have been a dumpster fire in 2022 because the Federal Reserve is turning off its money printer. The Fed’s balance sheet growth is flattening (already a problem for equities) and will shrink soon:

Fed “Taper” Big Problem for Stocks

Meanwhile, Russia’s war machine and China’s latest COVID fight have made an even bigger mess of global supply chains, further fueling already white-hot prices.… Read more

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5 Dividend Yields Up to 13.6%: Buy, Hold or Sell?

It’s a no-yield world we dividend investors are living in. But believe it or not, there are some payers with serious yields that get zero mainstream attention. We’ll discuss five in a moment.

I’m talking about dividends between 9.5% and 13.6%! Yes, you read that right—one of these stocks dished 13.6% back to its happy income investors over the past twelve months.

Are these yields safe? That is always the question. The backdrop is certainly better than last year. One year ago, the emergence of the COVID-19 pandemic in 2020 triggered a slew of dividend cuts and suspensions as companies scrambled to preserve cash and remain solvent through the uncertain future.… Read more

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3 REITs Paying up to 10% with Double-Digit Upside Ahead

The yield on the benchmark, 10-year U.S. Treasury note has moved above 3% in May, which is the highest it’s been since 2011.

This is notable to REIT investors for multiple reasons. First, higher interest rates (both short-term and long-term) mean that bank CD’s and other lower-risk income investments are offering higher competitive yields.

Of equal note, is the fact that rising long-term interest rates are now factoring into higher discount rates for fundamental valuation models. In other words, investors will now require higher dividends to justify current valuations and be compensated for the rise in rates.

I believe that investors consistently reward growth in stocks, even with more income-oriented groups like REITs.…
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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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