This “Low Drama” 5-Stock Portfolio Yields 7.2%

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This “Low Drama” 5-Stock Portfolio Yields 7.2%

Dividends over drama, please. Like these five steady stocks that yield 7.2%, on average.

Back in school they taught us that to increase returns, investors had to take on additional risk. This was a financial engineering class at Cornell University, by the way. The prof should have known better, but he didn’t, because he was a researcher and not an actual investor.

It’s a common mistake in academia, and those who try to invest “buy the book.” The book says more beta means more returns. Well, this text is often wrong!

Big dividends and low volatility are a beautiful combination.

Volatility can be measured several ways.… Read more

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A Utility Resurgence? 6 Stocks Yielding up to 8.9%

Utility stocks are the OG dividend payers. They’re delightfully dull. They’re dependable. They’re always worth scouting for income—and I’ve got six 5%-plus dividends on deck to share with you today.

I’m pleasantly surprised that we still have a chance to buy utilities for reasonable prices right now. Despite a year’s worth of worries about a pending recession, utilities have been the market’s worst sector year-to-date.

Perfect. We have value!

Utilities have worked off the froth I pointed out a year ago. Let’s just look at the forward P/Es from this year and last.

Sept. 10, 2022: Utilities Forward P/E: 20.9 S&P 500 Forward P/E: 17.7

Sept.… Read more

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Safe Dividend Stock Pops 5% in 5 Days Thanks to Analyst Dislike

Thoughtful reader Terry K. asks for my favorite utility dividend—specifically why I prefer NextEra Energy Partners (NEP) to Clearway Energy (CWEN):

Would like your thoughts on CWEN vs. NEP. I’ve looked at both and based on numbers CWEN looks to be the better option.

 

It has just raised its dividend.

 

Plus, it is better liked by other analysts.

Analyst ratings are a wonderful contrarian indicator. Thank you for writing in; I bet many of our fellow contrarians are asking the same thing! This is a great opportunity for all of us because it has been too long since we have lauded buying dividends that analysts dislike.… Read more

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