Playing With Fire? Four Huge Dividends up to 16.5% the Pros Say We Should Avoid

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Playing With Fire? Four Huge Dividends up to 16.5% the Pros Say We Should Avoid

Wall Street analysts have “Buy” ratings on 388 stocks in the S&P 500. That’s over 76% of the index!

Thank you, suits, for the curation. No, seriously. We contrarians are going to comb through the Holds and, even, the lone Sell:

Analysts Rate Most Stocks as “Buys”

Source: S&P Global Market Intelligence

Analyst optimism is the norm. Analysts need access, companies provide them with access. One hand washes the other, thus it is rare to see unfavorable ratings on stocks.

The problem with a Buy rating is that there is nobody left to upgrade the stock. Every delta is a downgrade.… Read more

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These 5 Companies Pay Regular “Special Dividend” Bonuses. Seriously.

Quarterly dividends.

Getting paid every 90 days. Ninety. Who wants to wait that long?

That’s life as a vanilla income investor. These poor folks (literally!) have no idea about “special dividend” stocks.

These are companies that pay each shareholder hundreds, thousands, even tens of thousands of dollars a year more than expected. The payments often come around the holidays. Think of them as year-end bonuses.

Beats a subscription to the jelly-of-the-month club!

These special dividends can make a big retirement difference. I’m talking about a 1.3% “headline yield” that actually adds up to 6%, and a 4% print that really totals 11% per year.… Read more

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An Extra $44,000 in Dividend Income (Hidden in Plain Sight)

It is challenging to find stocks that pay enough money to retire on. For example, even a 3.3% dividend—generous by today’s standards—isn’t enough to turn a $1,000,000 into an income stream that will last forever.

I’ll save you the math. It’s just $33,000 per year on a million dollars.

Fortunately, this same dividend yield is understated on most mainstream financial websites. In reality, this stock paid 7.7% over the past twelve months. Which means its millionaire investors actually earned $77,000 in dividend income.

Yes, you read that right. There was an extra $44,000 hidden in plain sight thanks to a “special” dividend payment.… Read more

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8 Growing Dividend Payers (up to 8.2%) You Can Sit on for Decades

If we learned anything from 2020, it was the value of a few extra rolls of toilet paper. A close second? The reminder about the value of a reliable dividend.

This lesson has been taught over and over. The dot-com bubble. The Great Recession. The “COVID crash.” And sure enough, first-level investors don’t learn a thing—they chase one fat yield after another into the ground.

We next-level income investors know better. It’s important to consider the business engine under the hood. When we find cash flow machines like the eight dividend payers we’re about to discuss, we’re talking about decades of payments.… Read more

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