Why These 8%+ Yielding Funds Crush Low-Fee Index Funds (Every Time)

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If you always wanted a free lunch but thought they don’t exist, well, they kind of do, in the form of the Fidelity group of ZERO index funds, like the Fidelity ZERO Total Market Index Fund (FZROX).

After all, its 0% fees mean it should easily beat a closed-end fund (CEF) with a high expense ratio, right? Well, not so fast.

0% Fees Do Not Equal Outperformance

FZROX—in purple above—may levy no management fee, but it’s underperformed many equity CEFs over a long period. Since inception, it’s trailed the Adams Diversified Equity Fund (ADX), in blue, and the General American Investors Co.Read more

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China’s over-the-top COVID lockdowns are setting up a surprising “all-American” dividend opportunity for us contrarians.

The pushback, which President Xi (shockingly) didn’t see coming, has shuttered plants left and right. Last Monday alone, Honda, Yamaha and Volkswagen closed factories in China, as did Nissan, Mazda and Mitsubishi.

And Apple (AAPL) has likely lost out on six million high-margin iPhone 14 Pros as protests shut down a factory in Zhengzhou run by key supplier Foxconn. The stock responded instantly:

Apple: Still a Little Too Multinational for Wall Street

How, you may wonder, is all this bad news setting up a dividend opportunity for us?… Read more

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Fed Chair Jay Powell is probably going to hike us straight into a recession—and even then, Jay still may not get the 2% inflation he’s hunting for.

Why? Because the supply-chain chaos we’re dealing with now is not going away. It’s part of a megatrend I expect to last the rest of this decade, and well beyond.

I’ll name two stocks we can tap to reap strong gains and fast-growing dividends from what many are calling the “end of globalization” in a moment. First, let’s dive into this critical shift, because it will drive, well, pretty well everything in our lives for years to come.… Read more

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In just over a month, the script has flipped for us dividend investors: Russia’s war on Ukraine has cleaved the world into two teams: east vs. west.

Some pundits have dubbed it Cold War 2.0. But whatever you call it, I think you’ll agree that the risks in this new arrangement are higher for us: we’re likely looking at another pop in the inflation rate, for one, due to (seemingly) never-ending supply-chain issues.

So it follows that Fed Chair Jay Powell will probably hike interest rates further than he otherwise would have as he tries to fix those supply-chain problems by making borrowing more expensive (if you can follow the logic there, please let me know, because it beats me!).… Read more

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Now that the election’s over, it’s time for us contrarians to get greedy!

And I’ve got just the thing: 3 hated buys we can use to rack up serious gains and dividends while the rest of the herd struggles to get its bearings.

Where do these 3 cash machines come from? The defense and infrastructure sectors.

Now you might see where I’m coming from on infrastructure. Probably the one thing Republicans and Democrats agree on is that our ramshackle roads, bridges and power plants need a lot of work.

More on this, including a rock-solid play for 6.5% dividends and “steady as she goes” upside, at the end of this article.… Read more

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Dividend growth is one of the keys to a strong retirement portfolio (and 12% annual gains forever). While any stock boasting a big stated yield is sure to grab your attention, if that dividend isn’t growing, it’s actually shrinking (as inflation eats up more and more of that income every year.)

That’s why I regularly keep my eye on dividend increases … and why I’m looking at a bundle of stocks that are very likely to up the ante on their regular payouts over the next few months.

If you’re an income investor, it’s increasingly important to focus on dividend growth because – guess what? – it’s slowing. Check out the chart below, which shows the S&P 500’s rate of dividend growth has pulled back to its lowest point since 2011. …
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