This “Low Drama” 5-Stock Portfolio Yields 7.2%

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This “Low Drama” 5-Stock Portfolio Yields 7.2%

Dividends over drama, please. Like these five steady stocks that yield 7.2%, on average.

Back in school they taught us that to increase returns, investors had to take on additional risk. This was a financial engineering class at Cornell University, by the way. The prof should have known better, but he didn’t, because he was a researcher and not an actual investor.

It’s a common mistake in academia, and those who try to invest “buy the book.” The book says more beta means more returns. Well, this text is often wrong!

Big dividends and low volatility are a beautiful combination.

Volatility can be measured several ways.… Read more

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Earn Stacks With Snacks: 5 Staples Stocks Yielding up to 10.7%

Let’s talk about consumer staples dividends today. If we’re heading for a slowdown then we need to be picky about our payouts. When the economy slows, discretionary spending is often punted but staples continue to be bought.

Today we’ll discuss five dividends between 4.2% and 10.7%. These “must have” products can provide our portfolios with important recession-resistant qualities.

Year-to-date staples have been flat and, in this market, that is great. Their sideways action has lapped the over-owned S&P 500 this year:

Consumer Staples: Doing Exactly What We Expect Them to Do

Consumer staples stocks tend to have more stable operations that result in more stable share performance in turbulent markets.… Read more

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The Pros Say to Sell These 6%-24% Dividends. I Say …

Stocks are climbing a wall of worry, which is a hallmark of bull markets. Higher equity prices really do require fear!

Today we’ll highlight the least-liked stocks on Wall Street. Why? Because each analyst has nothing to do but upgrade these plays from here. As always, we’ll focus on big dividends—I’m talking about yields starting at 6% and going all the way up to 24%.

Let’s recap our profitable sources of fear. First, the broader market per one of our preferred “vanilla gauges”:

Source: CNN Fear & Greed Index

While retail investors are fearful, analysts at large are quite bullish. At least on paper.… Read more

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4 Stocks Under $20 Yielding Up to 15.1%

Small cap stocks should benefit from the new administration. Today we’ll discuss four under $20 with yields between 7% and 15.1%.

The Trump 2.0 Trade is rolling and small caps are soaring because they are expected to benefit from reduced regulations. Since November 6, the small have become mighty, outperforming their larger counterparts:

Election Flips the Small-Cap Script

Too much too soon? The counterpoint is inflation, which is likely to remain sticky. Which means interest rates will remain higher than Wall Street previously hoped. Higher rates are a headwind for smaller companies, which tend to be debt machines. (They lack the cash flow of the giants.)… Read more

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7 King-Sized Yields (up to 12.4%) That Wall Street Can’t Stand

When the Wall Street cheerleaders actually dislike a stock—well, that sure commands our contrarian attention.

Today we’ll cover one of my favorite traditions, which is fading the opinions of analysts. You know, the guys who typically slap a Buy rating on everything they see?

It sounds counterintuitive, but we don’t want Buy ratings on our stocks. Give us Holds and Sells and general apathy. Or, even better, disgust.

When every analyst rates a stock a Buy, it feels “safe” to purchase. But really, it’s anything but. With nobody left to upgrade, there is nothing to do but wait for the dreaded downgrade.… Read more

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Analysts Say to Sell These 6.3%-12.6% Dividends, But…

Vanilla investors buy stocks that Wall Street approves of.

Why?

If a stock is showered with Buy ratings, then who is left to bid the price even higher? Nobody!

This lame “strategy” feels good but ends up with latecomers top ticking the market. Which is why we contrarians aim differently—for the bottom of the barrel.

Give us stocks with Sell ratings. Which often means there’s nobody left to sell!

Today we’ll discuss a pack of discarded dividend stocks paying up to 12.6%. Not only are these yields real, and spectacular, they have price upside potential to boot.

After all, a stock slathered with Sell labels has nothing but upgrades in its future.… Read more

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Swimming Upstream: 5 Stout Dividends Yielding Up to 25%

Want to know the secret to retiring on dividends alone?

Keep that capital intact.

We invest to generate income. The more we have, the greater our potential payouts. So, losing principal is the cardinal sin.

We want our dividends. And we want our prices intact, or better. (If they grind higher, we don’t argue!)

Stocks that are going “up” are tough to argue with. I know, I know—as contrarians we want to bargain shop. We can’t help ourselves to find a deal.

Well deals are great, but so is momentum—especially when it comes to dividend stocks, especially in a bear market.… Read more

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Don’t Fight the Fed: Let’s Sell These Dividends on “Rips”

In bull markets, we buy the dips. In bear markets, we sell the rips.

Starting in spring 2020 and through 2021, we dividend investors stayed in “buy the dip” mode. Granted, 2020 seemed like a strange time to want to invest. But the Federal Reserve had our backs.

Heck, Fed insiders knew it. In late February 2020, Vice Chair Richard Clarida sold $1+ million in stock shares—and bought them a few days later on the eve of a certain “central bank announcement.”

The proclamation? That the Fed was prepared to print as much money as it needed to! In order to float the stock market (ha!)… Read more

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5 Dividend Stocks with 1000%+ “Short Squeeze” Potential

Can you explain GameStop (GME) stock to me?

My buddy who texted isn’t usually into stocks. They are too quaint for him—heck, bitcoin has become too mainstream for him. Something was up.

Sure enough, I checked the GME chart, and whoa! What a move. And that was before last week’s moonshot, which propelled the stock to insane 1,000%+ month-to-date gains.

GME became famous on a website called Reddit, which lets users banter about common interests. Its financial-focused wallstreetbets board has been given credit for coordinating the GME buying and subsequent moonshot.

Which, as far as I can tell, is true. But it’s important to note that the money managers who lost their fortunes in the trade have only themselves to blame.… Read more

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How to Get 8% Dividends, 20% Upside (in 5 Months)

It’s rare when we get not one but two crashes bigger than 10%+ in a single year—but hey, it’s 2020. Anything goes.

But take just a second and imagine that you dodged both of those disasters, resting easily on the sidelines during the chaos. Then you moved into stocks for the rest of the year. In that case, 2020 just may be your best year yet!

 A “Dream” Strategy (That’s Possible to Achieve!)

Of course, no one can precisely predict the market’s next move. But what I’m about to show you is as close as I’ve ever seen an investing system get.… Read more

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