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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These 7%+ REITs Are the Perfect Hedge

Sir John Templeton and his 16 rules for investment success are required reading for any serious investor. And amid the volatility lately, I’ve been thinking a lot on one of these rules in particular:

“The investor who says, ‘This time is different,’ when in fact it’s virtually a repeat of an earlier situation, has uttered among the four most costly words in the annals of investing.”

Yes, it feels like the Russian invasion of Ukraine has opened a new chapter in geopolitics. And yes, it feels like we are on the cusp of something big with inflationary pressures, the threat of higher interest rates and other disruptions.… Read more

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A Tax Break (Up to 20%!) for Dividend Investors? It’s True

If you own any real estate investment trusts (REITs), make sure you forward this article along to your tax advisor!

Historically, REIT distributions have been considered nonqualified dividends by the IRS. This means they usually get taxed at your regular income tax rate.

However, REIT investors now benefit from the same tax break that “pass through” businesses receive. As a general rule, REIT investors are now allowed to deduct 20% of their REIT dividend income.

(This tax update is adapted from our new book How to Retire on Dividends: Earn a Safe 8%, Leave Your Principal Intact. You can grab your copy here.)… Read more

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These 7% Dividends Crushed the Market (and We’re About to Do It Again)

Today I’m going to give you everything you need to sail through the next crash, crush the S&P 500 by this time next year—and grab safe dividends up to 8.4%.

We’ll pull off this “dividend hat trick” through a set of “pullback-proof” investments with dividends up to 5 times bigger than what your typical S&P 500 stock pays.

In a moment, I’ll reveal three funds yielding up to 8.4% that are more than worthy of your attention now. They come from a corner of the market that will surprise you.

First, though, you might be wondering how I found these big, steady payouts.… Read more

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