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

Our Archive

Search completed

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

Read More

Tiny Stocks, Tremendous Yields: 5 Small Caps Yielding up to 13.8%

Small-cap stocks are on sale. We can buy select names for just 8.8 times earnings and 83% of book value.

Large cap stocks rarely sell this cheap. That is the problem with popularity! Which is why we’re looking small but thinking big, eyeing payouts between 7.3% and 13.8%.

(Those dividends are no typos. The beauty of being nimble individual investors means we can fish in these small but potentially lucrative ponds.)

Now small cap stocks aren’t always this cheap. Traditionally, smaller firms trade at a premium to their large-cap counterparts given their outsized upside potential. But today, small caps are less expensive by just about every valuation measure.… Read more

Read More

5 Low-Vol Dividend Stocks Yielding Up to 10.4%

First-level investors think the key to retiring on dividends alone is to find the largest yields they can and ride them into the sunset.

But while it’s important to lock down fat yields—like the five-pack of 5.5%-10.4% yielders I’ll share with you today—that’s only part of the puzzle. We need two more things from our long-term income holdings:

  1. Dividend safety. A 10.4% payout is only helpful if it’s actually going to get paid for quarters and years to come. No dividend cuts, please.
  2. Principal safety. We’re also not looking to lose 10.4% per year in price. Or anything in price, for that matter.

… Read more

Read More

These 5 Companies Pay Regular “Special Dividend” Bonuses. Seriously.

Quarterly dividends.

Getting paid every 90 days. Ninety. Who wants to wait that long?

That’s life as a vanilla income investor. These poor folks (literally!) have no idea about “special dividend” stocks.

These are companies that pay each shareholder hundreds, thousands, even tens of thousands of dollars a year more than expected. The payments often come around the holidays. Think of them as year-end bonuses.

Beats a subscription to the jelly-of-the-month club!

These special dividends can make a big retirement difference. I’m talking about a 1.3% “headline yield” that actually adds up to 6%, and a 4% print that really totals 11% per year.… Read more

Read More

Big Yields, Little Stocks: 5 Small-Caps Paying up to 14.7%

Small dividend stocks are dirt cheap right now. I’m talking about stocks trading for less than one year’s worth of sales. Yields up to 14.7%. And single-digit P/E ratios.

Why such deals? Well, because they’ve been pummeled into bargain territory of late. A number of high-yield bargains are staring us right in the face.

Small firms, straight up, are the cheapest stocks on the planet right now:

Value is great but show us the money! We’ll do so with five small-caps averaging a stellar 12% in yield among them. Are these deals or are these equities cheap for a reason?… Read more

Read More

When the Market Wiggles, These 5%-13% Yields Don’t Waggle

To retire on dividends, we have just two requirements. They are simple, though perhaps not exactly easy:

  1. Earn safe, meaningful yields. Five percent is our floor, thirteen is our stretch goal. We’ll discuss five stocks in this dividend range shortly.
  2. Keep our principal intact. To do this we’ll focus on “low beta” stocks—shares that move less than the broader market.

Beta says how much (or how little!) an investment moves compared to some benchmark. With stocks, beta is usually going to measure movement against the S&P 500.

Here’s an example. Let’s say a stock has a beta of 0.50.… Read more

Read More

Are These 8%-25% Yields Too Good to Be True? Well…

The bond market is blowing up many retirement portfolios. Let’s make sure yours is outrunning inflation, rates, and everything else—with these yields up to 25%.

(That’s not a typo. We’ll talk 25% dividends in a moment. First, let’s address the fixed-income elephant in the room.)

The 10-year Treasury is rapidly running towards 3%—a level it hasn’t hit since 2018. The Fed’s hawkish stance has created a mass exodus in bonds, sending the T-note up from 1.5% at the start of the year to nearly 2.9% in just a few short months.

Now, that’s definitely no reason to start jumping into government debt.… Read more

Read More

Buy at These Highs? No Thanks – 4 Cheap Dividends Instead

If you’re an income investor like me, these stock market all-time highs are pure misery. Fortunately, I have a fix, which I’ll explain in a moment.

High stock prices mean low yields for new money, which unfortunately minimizes dividend potential. Plus, buying overpriced stocks limits upside potential, too.

Why reach for a 2% yield when you could lose that in an overnight trading session?

Cheap dividend stocks are a rare breed right now. But there are a few bargains left, and not because they are risky. These misunderstood shares are the last bastions of dividend value remaining on the board today.… Read more

Read More

Buy at These Highs? No Thanks – 4 Cheap Dividends Instead

If you’re an income investor like me, these stock market all-time highs are pure misery. Fortunately, I have a fix, which I’ll explain in a moment.

High stock prices mean low yields for new money, which unfortunately minimizes dividend potential. Plus, buying overpriced stocks limits upside potential, too.

Why reach for a 2% yield when you could lose that in an overnight trading session?

Cheap dividend stocks are a rare breed right now. But there are a few bargains left, and not because they are risky. These misunderstood shares are the last bastions of dividend value remaining on the board today.… Read more

Read More

This 20.1% Yield is Too Good to Be True (But This 11.8% Payout Isn’t!)

Most dividend investors understandably love the idea of an 8% No Withdrawal Portfolio. It’s a simple yet “game changing” idea that you don’t hear much from mainstream pundits and advisors.

Find stocks that pay 7%, 8% or more and you can retire comfortably, living off dividend checks while your initial capital stays intact (or even appreciates).

Now this strategy is a bit more complicated than simply finding 8% yields and buying them. Granted the recent stock market pullback has benefited investors like us because we can snag more dividends for our dollar. Yields are higher overall, and that’s a good thing.… Read more

Read More

Categories