3 Toxic ETFs to Sell Yesterday (and 3 Picks Growing Payouts Up to 420%)

Our Archive

Search completed

3 Toxic ETFs to Sell Yesterday (and 3 Picks Growing Payouts Up to 420%)

Look, I get it: many folks love ETFs, mainly because of the cheap management fees.

I mean who doesn’t love a deal? And it is true that ETFs’ fees are a fraction of those levied by the typical mutual fund or closed-end fund (CEF).

Trouble is, most ETF buyers get exactly what they pay for! Some of the worst performers in ETF-land are dividend-growth ETFs, which sound like a nice “1-click” way to load up your portfolio with soaring payouts.

Too bad they can’t stop tripping over their own feet!

Look at how three major dividend-growth ETFs, the iShares Core Dividend Growth ETF (DGRO), Vanguard Dividend Appreciation ETF (VIG) and ProShares S&P 500 Dividend Aristocrats ETF (NOBL), have fared in the past year:

Stocks Lap Dividend-Growth ETFs

As you can see, the S&P 500 (in orange) blew past this trio, with a 24% total return.… Read more

Read More

Dogs of the Dow 2024: Cheap Dividends, But Are They Values?

The 2024 Dogs of the Dow are particularly homely hounds—which means we’re talking big dividends.

This year’s Dogs yield more than three-times the broader market’s paltry payout. So, should we hold our noses and buy? Let’s grab some peanut butter treats and investigate. But first, a review of the “Dogs” strategy.

The “Dogs of the Dow” strategy means buying the Dow Jones Industrial Average’s laggards. It’s a simple three-step strategy that often outperforms in the year ahead:

  • Step 1: After the final trading day of the year, identify the 10 highest-yielding stocks in the Dow.
  • Step 2: Buy all 10 stocks in equal amounts and hold them for a year.

… Read more

Read More

Fast Trading Profits via Secure Dividend Stocks? You Bet

Federal Reserve Chairman Jay Powell is scared. First, it was UK pension funds. Now, the entire banking system has liquidity issues.

Fourteen years of quantitative easing is a tough habit to break! We are one year into the Fed’s attempt to tighten monetary conditions.

Should we buy bargains? Or sell now and go shopping later?

Fellow contrarians want to know! Our Contrarian Outlook customer service line has been hot. Today, we’ll put on our short-term thinking caps and discuss your dividend trading questions.

Q: Do you see any good buys among the regional banks where the “baby got thrown out with the SVB bathwater?”… Read more

Read More

2 Big Dividend Hikes Set to Drop Soon (Tickers Revealed Below)

Now is the best time to roll out our favorite dividend “hack.” It’s a sneaky-smart strategy that lets us “time” the market for soaring dividend payouts (and a steady drip of price gains, too).

Our plan consists of two simple steps, which we’ll look at now. Then I’ll name two stocks that are perfect for this strategy. Both look set to roll out big dividend hikes soon.

Step 1: Buy Just as a Payout Hike Is Announced

We’ll start by “timing” our buys just as dividend hikes are announced. That’s a veteran move because a company’s stock almost always rises with its payouts—a predictable pattern I call the Dividend Magnet.… Read more

Read More

This “Dividend Trade of the Decade” Crushes Stocks, Drops 28%+ Payout Hikes

We aren’t falling for this “head fake” oil plunge. Instead we’re buying what I like to call the “Biden barrel discount”— grabbing beaten-down oil stocks with surging dividends!

I’ll drop two tickers primed to ride oil’s next bounce higher in a second. First, though, here’s what I mean by the “Biden barrel discount”:

Sure, oil has pulled back on recession worries, but the US has also been releasing crude from its “emergency” supply, the Strategic Petroleum Reserve (SPR). A cool one-hundred million barrels have been released in the past 12 months.

We’ve been buyers of the energy-price dip because:

  1. The SPR release—or our “Biden barrel discount”—can’t  go on forever.

… Read more

Read More

Here’s When the Summer Rally Ends (and 2 Dividends to Buy on the Dip)

Bad news for your friends who only own “America’s ticker”—the S&P 500. We’re set up for a September swoon that could easily send the SPDR S&P 500 ETF (SPY) down 5% or more from current levels.

Good news for us income investors—we’re going to have a great dip to buy some of our favorite dividend payers.

We’ll talk about the best dividend stocks for September in a moment. We’ll specifically highlight two “low-drama dividends,” too.

First, let’s discuss why we need to get ready for a pullback.

History Points to a September Swoon …

For one, if we look back to 1945, as the folks at CFRA Research did, we’ll see that September has been the worst month for stocks, with positive returns just 45% of the time.… Read more

Read More

Introducing the 2022 Dogs of the Dow: 10 High-Yield Blue Chips Paying up to 4.9%

Once upon a time, it was hard to find an income strategy much better than the idiot-proof “Dogs of the Dow.”

And hey, in this wild market in which the S&P can drop 2% in a couple of hours, this sounds pretty good. Let’s buy some blue chips and earn 3x more income than the broader market.

Which Dogs are paying the biggest dividends for 2022? As a group these battleship businesses are paying 3.8% versus just 1.2% for the broader market. We’ll review them in a moment. First, the Dogs of the Dow rules:

  • Rule 1: After the final trading day of the year, identify the 10 highest-yielding stocks in the Dow.

… Read more

Read More

How to “Inflation-Proof” Your Portfolio (Hint: It’s Not Gold)

No matter the financial headlines, all roads will—eventually—lead to (even higher) inflation. So, we should use pullbacks and rallies alike to make sure we are inflation-protecting our retirement portfolios.

We’ll talk specific stocks and funds in a moment. First, let’s review the mechanics of money printing.

The accommodative Federal Reserve has already increased the M2 Money Supply by 38% since the start of 2020! That’s a lot of dough that has flowed into the financial markets. With the Fed continuing to stand by to support the stock and bond markets, we should look past current concerns and realize that the “solution” to any setbacks will be more easy money.… Read more

Read More

A Stock Dividend Portfolio with a P/E Under 9, Yield Nearly 7%

What if I told you that, in a market this expensive, there are nine dividend stocks with price-to-earnings (P/E) ratios under nine?

And that this low P/E ratio paid 6.9% per year in dividends?!

If I didn’t research and write it, I wouldn’t believe it myself. But in a minute I will share the details on this 9-pack, which yields 4.2% to 19.2%.

We’re unlikely to see these hidden gems touted on mainstream financial websites. With the S&P 500 in the stratosphere, these ground-level bargains are being overlooked. But we contrarians see these dirt-cheap dividend stocks that:

  1. Boast P/E ratios that average just 8.5.

… Read more

Read More

3 Beaten-Down Energy Dividends (up to 7.7%) With 65% Upside Ahead

The recent oil correction has opened a window for us income investors to grab big(ger) dividends at big(ger) discounts! Today we’re going to take full advantage.

In a moment, we’ll discuss a 3-click energy dividend portfolio that yields 5.9%. Plus, we have some price upside in addition to these payouts, thanks to the pullback in the energy sector.

There’s no doubt the goo has taken a header, dropping from $75 a barrel in mid-July to $62 as I write this. But that’s overdone: consider that our “crash ’n’ rally” scenario (which I’ve been arguing with anyone who will listen for 16 months now) is still in early days.… Read more

Read More

Categories