2023’s Dividend Doublers? These Stocks Have the Juice

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2023’s Dividend Doublers? These Stocks Have the Juice

A dividend hike is the ultimate sign of dividend safety. It’s also the surest, safest way to “get rich soon-ish” in stocks.

Find me stocks that are raising their dividends quickly and regularly, and I’ll show you some stocks that are doubling every few years.

What drives the dividend? Well, the likelihood that a company is going to raise its dividend (or cut it) is directly related to its payout ratio, or the percentage of its profits that it is dishing out to shareholders as dividends.

As a rule of thumb, a payout ratio below 50% is a sign of dividend safety.… Read more

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5 Dangerous Dividends for a “Bathtub-Shaped” Recovery

Let’s keep our heads and our dividends above water in this crazy year that is 2020. Most income investors know that it’s been brutal for dividends. But do you know how horrific it’s actually been?

Our pal Howard Silverblatt of S&P Dow Jones Indices has slapped an official number on it:

$42.5 billion.

That’s how much cash U.S. stocks cut or suspended their dividends by in the second quarter alone. We haven’t seen pay cuts this steep since Q1 2009, when investors received $43.8 billion less in cash distributions than the year prior.

This wasn’t just a couple of large dividend programs tanking, either.… Read more

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How to Get 80% Dividend Growth and 76% Upside (in 1 stock)

It really is possible to find stocks that grow your money 15%+ a year forever—even in the middle of a pandemic.

Better still, these “unicorns” are a cinch to find. We only need to look for one thing: a dividend that’s growing—and ideally accelerating.

I know that sounds like a tall order, with S&P 500 payouts plunging $42.5 billion in the second quarter. But that figure masks the fact that many companies are still hiking their payouts—and will continue to, even if this crisis drags on longer than we expect.

Dividend Growth = Share-Price Growth

Of course, it’s not good enough to simply pick a few stocks with fast payout growth and call it a day.… Read more

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5 Simple Steps to 10% Yearly Returns with Safe Dividends

Successful dividend investing is simple, though not necessarily easy. There are nuances which trip up many investors (including most professionals!). These twists and turns create “yield alpha” opportunities for contrarian-minded income investors like us.

If everyone else in the market were perfectly grounded and calculated, there would be no chance for us to make above-average returns. Thanks to these inefficiencies, we are able to bank big yields and price gains in Dividend Land. Ready to retire on dividends? Follow these five steps and we’ll do it together. Let’s start with an obvious yet underappreciated rule for income investors.

Step 1: Count Your Dividends

Since we focus on high yield, most of our returns come from the “yield” component of stocks.… Read more

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This “Dividend Time Machine” Lets You Buy 7% Payouts at 2019 Prices

Let’s be honest: our lives would be much easier if we could just buy the typical S&P 500 stock, get the 7%+ dividends we need for retirement, and call it a day. Trouble is, the popular kids only pay high yields when the market’s in flames!

Like Pfizer (PFE), which yields a ho-hum 3.8% now. But if you’d bought when stocks bottomed during the financial crisis, you’d be sitting on a cash machine: back then (March 2009), Pfizer’s payout shot up to an incredible 11%!

Pfizer’s (Very) Temporary 11% Yield

Of course, you needed quick reflexes and nerves of steel to lock in that yield before it vanished in the rebound.… Read more

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How to Be An Elite Dividend Investor

Successful dividend investing is simple, though not necessarily easy. There are nuances which trip up many investors (including most professionals!) These twists and turns create “yield alpha” opportunities for contrarian-minded income investors like us.

If everyone else in the market were perfectly grounded and calculated, there would be no chance for us to make above-average returns. After all, the 11.3% and 17.5% annualized returns that my Contrarian Income Report and Hidden Yields readers are earning would be snapped up in a perfectly efficient market.

Thanks to these inefficiencies, we are able to bank big yields and price returns in Dividend Land.… Read more

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This 10% Yield is Trash (Plus 3 More Dividend Traps to Sell Now)

The S&P 500 has just set new all-time highs, and so has the Nasdaq. It’s no coincidence that stocks are back to historically high valuations, and yields have been flattened back to historically low levels.

If you’re an income hunter, you know it’s a difficult time. I’m here to tell you that it’s a dangerous time, too.

Buy High and… Sell Higher?


Source: Multpl.com

Tight income environments like this make dividend investors “reach for yield” at their own peril. They forget that a stock’s yield is only as good as its cash flow because, after all, a dividend is nothing more than a promise from a company.… Read more

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These 4.8%-5.9% Yields Could Get Hacked Apart

A stock’s yield is only as good as its cash flow because, after all, a dividend is nothing more than a promise from a company.

CenturyLink (CTL) recently reminded us of this. Its promised $0.54 per share dividend exceeded its ability to pay. The firm’s payout ratio of 130% – the percentage of profits that it was paying as dividends – was an absurd overpromise that couldn’t last forever:

CenturyLink’s Payout Promise Was Always on Borrowed Time

CEO Jeffrey Storey insisted his team remained “committed to and confident in our ability to maintain the dividend.” I understood the commitment, but questioned the confidence–taking on debt to pay dividends is a losing game.… Read more

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8 Dividend Dumpster Fires to Sell Right Now

A stock’s yield is only as good as its cash flow because, after all, a dividend is nothing more than a promise from a company.

CenturyLink (CTL) recently reminded us of this. Its promised $0.54 per share dividend exceeded its ability to pay. The firm’s payout ratio of 130% – the percentage of profits that it was paying as dividends – was an absurd overpromise that couldn’t last forever:

CenturyLink’s Payout Promise Was Always on Borrowed Time

CEO Jeffrey Storey insisted his team remained “committed to and confident in our ability to maintain the dividend.” I understood the commitment, but questioned the confidence – taking on debt to pay dividends is a losing game.… Read more

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This 14.2% Yield is Too Good to Be True (But This 9.5% Payout Isn’t!)

Most dividend investors understandably love the idea of an 8% No Withdrawal Portfolio. It’s a simple yet “game changing” idea that you don’t hear much from mainstream pundits and advisors.

Find stocks that pay safe 7%, 8% or more and you can retire comfortably, living off dividend checks while your initial capital stays intact (or even appreciates).

Now this strategy is a bit more complicated than simply finding 8% yields and buying them. Granted the recent stock market pullback has benefited investors like us because we can snag more dividends for our dollar. Yields are higher overall, and that’s a good thing.… Read more

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