How to Invest in Tech Like a Baller (6.3% dividends, 15% upside)

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How to Invest in Tech Like a Baller (6.3% dividends, 15% upside)

Tech stocks have finally taken a breather—and we’re going to pounce on this dip—and grab a rare “double discount” while we’re at it.

The strategy we’re going to use also lets us “squeeze” the biggest tech names for payouts that are unheard of in the sector—I’m talking yields up to 6.3%.

Mom’s Coupon-Clipping Goes High-Tech

This approach is an ode to my mom who, to this day, refuses to pay the sticker price. If there’s a coupon to be found, she’ll find it and find another coupon to secure a double discount—even if it requires management approval to apply!

The dividend equivalent of the back-to-back coupon is buying discounted closed-end funds (CEFs) after a pullback, and that’s exactly the setup we’ve got in tech now.… Read more

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This 5% Dividend Will Bounce on the Rising-Rate Scare

We’re contrarians first and foremost here at Contrarian Outlook, so when we hear the latest “sure thing” from the mainstream crowd, we get more than a little suspicious.

So it goes with the recent round of selling on the stock markets, which has been driven by the “certainty” that interest rates will skyrocket, and higher rates will crush demand for stocks, especially the tech stocks that have driven the market’s rebound from the March 2020 crash.

Does this view stand up (sneak preview: no)? And what should we contrarians do in response (sneak preview: buy what everyone else is selling—particularly through a group of funds sporting some very impressive dividend yields).… Read more

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These Ignored 6.5% Dividends Will Be the Biggest Story of 2021

A wild year like 2020 is a great acid test for closed-end funds (CEFs)—and it can tell us a lot about which of these high-yield plays to pick (and avoid!) as we move deeper into 2021.

A Split Market

If 2020 did anything, it widened the gap between winning and losing sectors of the stock (and closed-end fund) market. It just goes to show how critical it is to pick funds in the right sectors, as well as those with savvy management that can shift with the times.

Technology, of course, boomed last year. At my CEF Insider service, we were well-positioned in tech with the BlackRock Science and Technology Fund (BST), which we added to our portfolio in August 2019.… Read more

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The 8%+ Dividends Most People Will Miss (and Kick Themselves for It in 2022)

If you’re like most investors, you’re tired of having the following two pieces of “wisdom” pounded into your head by the financial media:

  1. Any high yield (here I’m talking 6% and up) is dangerous and certain to be cut, and …
  2. Hardly anyone ever outperforms the S&P 500, so why even try?

Both are nonsense.

Fact is, you can get steady yields of 7% and higher (or even 8.8%, as I’ll show you shortly) through several high-yield funds called closed-end funds (CEFs). (If you’re a member of my CEF Insider service, you already know this: our portfolio of 20 CEFs is handing us an average dividend of 7.7% today, with the highest yielder of the bunch paying an outsized 11%.)… Read more

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Prediction: These 3 Hated Funds Will Soar (and Pay Big Dividends) in 2021

Let’s relegate 2020 to the trash heap (where it belongs!) and look to the new year that dawns tomorrow. I’ve got three predictions I’m going to lay out for you now, and three high-yield closed-end funds (CEFs) with dividends up to 8% that are nicely positioned to ride them to strong gains in the next 12 months and beyond.

Prediction No. 1: Home Sales Will Surge—and So Will This 8% Payer

One of the biggest financial stories of 2020 was the strong real estate market. In November, US home prices jumped 12.7%, and Zillow believes 2021 will be “the hottest [year] in recent memory.”… Read more

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Market Shift Ahead: Here’s How to Play It for 7% Dividends (and Upside)

Let’s take a look at how the new stimulus bill affects our portfolios—and dividends!—then look at how we’ll invest in closed-end funds (CEFs) for 7%+ dividends as 2021 unfolds.

Cash to Consumers = Bigger Corporate Profits (and Dividends)

One thing’s for sure—unlike the spring package, this one eliminates the problem of big companies absorbing billions in aid. This package is focused on putting cash in consumers’ hands, which I think we can all agree will do a better job of stimulating the economy.

For starters, taxpayers will get $600 in checks sent to them, while people on unemployment will get an extra $300 per week.… Read more

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This Quick Pivot Could Boost Your Dividends 20%+ in 2021

With 2020 coming to a (merciful) close, it’s a good time to take a moment to cast an eye over our dividend portfolios.

One thing to pay particular attention to: the amount of cash you’re holding. Because if you’re like many investors I’ve talked to recently, you’re holding too much of it—and that can cause a steady wealth drain that bleeds away thousands in returns every year!

Taking Money Off the Table—at Exactly the Wrong Time

Of course, having a healthy cash cushion is always a good thing. The trouble for most folks, though, is that they’ve been growing the amount of cash they have outside the market just as stocks have taken off.… Read more

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Dodge Dividend Cuts. Grab Huge 5.5%+ Payouts. Here’s How.

Maybe you’ve had to face one dividend cut in the crisis—maybe more than one. Maybe you’re like many folks, scanning the headlines daily to try to get a jump on the next cut before it slices your income steam.

I get it. It’s part of the anxiety we’re all feeling. And there is good reason to be wary: this pandemic has forced the biggest dividend “sacred cows” to slash payouts—names like Wells Fargo (WFC), Ford (F), Ventas (VTR) and Disney (DIS).

If you’d said any of these companies would cut their dividends back in January, you’d have been laughed out of the room!… Read more

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These 10 “Crisis-Proof” Funds Yield Up to 10% (with 17% upside)

After watching the S&P 500 crash, then levitate, over the past seven months, I’ve come to one conclusion: high-yield closed-end funds (CEFs) are disrespected now—and that makes them a great contrarian buy.

Sure, some CEFs are cheap for a reason (I’m looking at you, energy funds). But there are plenty of undervalued winners, too. And plenty of CEFs have crushed the market this year, including 10 that have returned more than 8%. This top-10 list, which I’ll show you below, includes CEFs that have doubled, tripled—and even quadrupled the S&P 500’s 4% return.

What’s more, these funds all have one thing in common that sets them up for even bigger gains: strong management, proving once again that who manages your money is just as important as what you invest in—especially if you’re looking to boost your portfolio’s income stream with the 7% (or higher) dividends the typical CEF throws off.… Read more

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2 Guaranteed Ways to Lose Money Now (and 2 Great Buys for 7.5% Dividends and Upside)

Flipping through my stock screener earlier this week, I ran across two of the best examples of bubbles-in-the-making I’ve ever seen:

Looking to Lose Money? Invest Here.

Those would be Tesla (TSLA), in blue above, and Virgin Galactic (SPCE), in orange.

Bubbles, of course, are nothing new: Nobel Prize–winning economist Robert Shiller explained them in his 2000 book, aptly titled Irrational Exuberance:

“Errors of human judgment can infect even the smartest people, thanks to overconfidence, lack of attention to details and excessive trust in the judgments of others, stemming from a failure to understand that others are not making independent judgments but are themselves following still others—the blind leading the blind.”… Read more

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