These Small Cap Dividends Pay up to 9.1%

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If you’re waiting for a pullback to put money to work, look no further than small caps.

Early last week, the S&P stopped the bleeding on a harrowing multi-day 2.9% decline. By midweek, “big cap” investors had recouped more than half of their losses.

Was that it? My guess is yes, that was a wrap on the market’s mini-drama for another month or two.

Our intrepid Federal Reserve continues to print a whole lot of cash, which serves to backstop any pullback. The Fed is still buying $120 billion in bonds per month, which adds up to “real money” after a while—nearly $1.5 trillion annually!… Read more

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Collecting dividends is fun. Doubling our money is even better.

From time to time, Mr. and Ms. Market will present us with a deal that includes payouts plus price upside. I’m talking about 50% to 100% returns from secure dividend payers.

These “dividend doubles” require a catalyst. Some event that, if it unfolds, would launch profits—and the firm’s stock price!

Higher interest rates are a compelling “catalyst bet” today. The 10-year Treasury yield tripled between August and April. We noted a few months back that the rate move was due for a breather, and that’s exactly what has unfolded with the benchmark rate briefly edging below 1.3% last week:

Time to “Buy the Dip” in Interest Rates?Read more

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On Sunday night, our old friend exclaimed to my wife and me: “How have you all been??”

It’d been, well, almost a year since we’d been to her bar. We had plenty to catch up on with our drink-slinging pal as we sipped and snacked. Back on the home front, our babysitter had recently resurfaced and appeared to have bedtime under control. It was nice to have a throwback evening, the type we all took for granted just 12 months ago.

In the interim, many income investors have, likewise, taken low long-term rates for granted. Not we contrarians, of course.… Read more

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