This Top Buffett Stock Shows the Power of Long-Term Dividends

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One of the messiest stories on Wall Street this year is the Walt Disney Co. (DIS). And considering the problems elsewhere on Wall Street, that’s saying something!

Disney suspended its dividend a little more than a year ago. Then, more recently, it ousted its CEO Bob Chapek in November. The surprise move came just months after the beleaguered CEO had hired outside consulting firm McKinsey to try and slash spending and restructure operations, a sure sign that company was adrift. The stock has been in a tailspin all year as a result, and is currently down almost 40% since January 1.… Read more

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The dividend-cut parade is starting on Wall Street, and we need to be on the lookout for “payout traps” that could be hiding in our portfolios (often in plain sight).

That task is made tougher because some companies are using unconventional approaches to cutting their payouts. Take the Walt Disney Company (DIS), which released first-quarter earnings last week. Included: news that Disney wouldn’t pay out dividends for the first half of 2020.

Disney’s Dividend Growth Stalls

After decades of growing its payouts (that dip you see in 2012 above is when the company went from annual to semi-annual payments—annualized payouts actually went up 19% that year), Disney isn’t outright announcing its dividend cut; it’s simply telling investors they may have to wait to get cash in their hands.… Read more

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If you’re like most people, you’re wondering one thing right now: can stocks keep soaring following December’s nosedive—even after spiking 8% in January?

The answer? Absolutely.

To get at why I’m so sure, we’ll first go a couple steps further than headline-driven “first-level” investors do. Then I’ll give you a way you could double (or more) your rebound gains thanks to a terrific closed-end fund (CEF) yielding 7.2%—and “spring loaded” for 35% returns this year.

The Ignored Connection Between Jobs and Stocks

To get at what’s in store for the markets in 2019, we have to go back to 2009 and zero in on one thing: jobs.… Read more

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