2 “Tollbooth” Dividends Growing Payouts 135%+

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Election chaos—especially after Friday’s bombshell—could be a knockout blow for this market bounce. I’m worried. And going by our Contrarian Outlook mailbag, plenty of readers are, too.

A typical question goes like this: “Brett, what should I buy/hold/sell if X/Y/Z happens after November 3?”

Now we have to add the president’s positive coronavirus test into the mix!

Rest easy—I’ve got you covered. Today we’re going to talk about two stocks you could hold through 2021, 2022, 2023, and beyond. These companies’ current dividends are much higher than the S&P 500 average. But the real story is their dividend growth, which will triple up your income stream in short order.… Read more

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In normal times, real estate investment trusts (REITs) are a great way to cut your portfolio’s volatility—and double the income you’d get from regular stocks.

Of course there’s nothing typical about 2020, but this “new normal” actually presents an especially excellent opportunity to buy select REITs on the cheap. I’m talking about cash cows with rent flows that were not disrupted by shutdowns.

Cheap stocks with higher-than-usual yields and bulletproof cash flows? Read on and we’ll sign up for this deal together.

REITs, remember, are “no drama” pass-through investments: they collect the rent on their properties, take out enough to keep their buildings in good working order, then pass (almost all of) the remaining cash to you as dividends.… Read more

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We’re almost three months into this crisis and three things are crystal clear:

  1. Plenty of “household-name” dividend-payers are in big trouble—and not just the ones you see in the news. When the payout cuts come, the resulting share-price drops will crush the unwary.
  2. Way too many people are clinging to blue chips yielding 2% or 3%. But is such a small payout worth it when you can lose that much in a single trading session?
  3. We can’t trust any stated yield until we verify a company’s cash flow.

This may sound a bit alarmist, but imagine if I told you in January that by mid-May, Ford (F), General Motors (GM), Walt Disney (DIS) and Las Vegas Sands (LVS) would have all either eliminated or, in Disney’s case, delayed their dividends.… Read more

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The S&P 500 index has been “relief rallying” like crazy, but to most income investors, this means nothing. The wider the basket of stocks, the rougher the year it has been. Let’s consider that (as I’m writing this):

  • Year to date, the “big cap focused” S&P 500 is down “just” 12%. However,
  • When we weight its 500 stocks equally, its return drops to 20% YTD. And,
  • When we expand the universe to look at small cap stocks, we see the Russell 2000 is down a brutal 24% thus far in 2020:

Don’t Let the S&P 500 Fool You

Plus, we now face another problem: an income drought!… Read more

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I know it’s hard not to worry about your portfolio, and income stream, these days, but we will make our way through this crisis. When we do, your holdings will bounce back—and likely faster than the market if you hold strong dividend stocks.

And, when the time is right, I expect we’ll get a chance to snap up some huge dividends for dimes on the dollar. I’ll keep you posted on when we’ll move—and what to buy—in my Contrarian Income Report service.

(These are the types of dividend bargains that are only available once a decade. I’m talking about the post-crash worlds of 1987, 2002, 2009 and, coming soon, late 2020.)… Read more

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In recent weeks, we’ve discussed proven strategies for protecting and growing our nest egg (and dividends) in this crisis. These are the times when fortunes are made and big income streams are built. However, we must be extra careful about our purchases, with plenty of “payout landmines” suddenly spread around the market.

In last Tuesday’s article, for example, we covered the most powerful indicator of dividend safety: the payout ratio, specifically dividends as a percentage of free cash flow (FCF). Unlike net income, which can be manipulated, FCF is the clearest picture of the cash a firm is generating.

That makes the FCF payout ratio the perfect one-step test to run on your holdings.… Read more

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If you’re like most income investors right now, you’ve got one eye on this twitchy market—and the other on red flags like slumping manufacturing numbers, chaos in DC and even the dreaded inverted yield curve.

I’m worried, too. But our best play here is not to sit in cash. With your mattress full, you’ll be forced to stand by as inflation drains your savings.

Worse, you’re certain to miss the next rebound. Because that’s the real mistake perma-bears always make: staying out of the market too long!

That’s why the smart move here is to buy. But we’re still going to take out some portfolio “insurance” by focusing on “crash-resistant” stocks.… Read more

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Where are you going to find meaningful income to get you through retirement? Not from popular stocks, with the S&P paying less than 2%. And bonds won’t help either, as their yields are in the tank, too.

Instead let’s consider real estate investment trusts (REITs), which are tailor-made for investors who are at or nearing retirement. Specifically, I’d look to dividend-growing REITs, like the three I’m about to show you. This trio of landlords are on pace to double their dividends in just four years.

How Dividend Growth Can Quickly Double Your Money

Respected healthcare REIT Ventas (VTR) is the perfect example of how this strategy can do more than provide income.… Read more

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Believe it or not, we now have the best window to buy dividend stocks that we’ve had in decades. Two proven 100%-return indicators just flipped to “green.”

The conditions we’re about to see are rocket fuel for companies growing their dividends like weeds. As usual, we’re going to zig while like-minded money managers (you know, those that outperform a mere index) zag.

Our 100% Proven Contrarian Play

The first factor that points to more upside for stocks is the foul mood among the so-called “smart money.”

According to a June survey by Bank of America Merrill Lynch, fund managers expectations of global growth sank the most since November 1994.… Read more

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This market wipeout has one big silver lining for income investors like you and me: dividend yields are soaring—and today we’re going to tap four of my favorite stocks for payouts all the way up to 8.9%.

First, though, to see just how incredible this buying opportunity is, look no further than the Vanguard REIT ETF (VNQ), the benchmark ETF for real estate investment trusts (REITs).

If you logged into your investment account now and simply bought VNQ, you’d kick-start a nice 4.8% income stream. The ETF has only shelled out a payout that big on two other occasions—and only very briefly—in the last 10 years.… Read more

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