Why Buy “Broke” Blue Chips? These 5 Small Caps Pay up to 17%

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Small-cap stocks haven’t been this cheap in decades. This valuation advantage gets interesting when we add big fat dividends and today, we’ll discuss five cheap small stocks yielding between 8.3% and 17.1%. (That’s no typo by the way—we only talk serious dividends here at Contrarian Outlook!)

The Apples, Google and Microsofts of the world are priced like luxury goods. Smaller stocks, meanwhile, have been left at the discount rack. Let’s shop:

  • S&P 500: 21.2 times earnings (pricey!)
  • S&P MidCap 400: 15.4 times (better…)
  • S&P SmallCap 600: 14.7 times (bingo!)

The valuation spread between the S&P 500 and S&P 600 hasn’t been this wide since Bill Clinton was wondering whether dot-com was one word or two.… Read more

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This is how wealthy people invest—and collect yields up to 12.5%.

Private equity (PE) is usually reserved for the rich. It’s the time-honored sport of milking cash from perfectly good businesses! Bleed ‘em dry and keep those dividends coming.

The minimum buy-in for most PE funds? From $500,000 to a cool million bucks or more. This lucrative pastime isn’t meant for the everyman.

Which grinds my gears, my dear friend. This is Contrarian Outlook, dedicated to dividends for said everyman. We have a loophole, and we’re going to share it today.

Business development companies (BDCs) are PE-esque companies. Many trade publicly and we can buy them just like regular stocks.… Read more

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