Snag 7%+ Yield in This Crash-Proof Energy Stock

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Snag 7%+ Yield in This Crash-Proof Energy Stock

If you did any driving over the holiday weekend, you may have noticed that prices at the pump are much more manageable than they were just a few months ago. In fact, they recently hit their lowest level since mid-February.

That’s great for motorists, but has admittedly created plenty of pain for investors who thought the windfall profits in the oil patch were sustainable. Consider that the popular Energy Select Sector SPDR Fund (XLE) made up of blue chip energy stocks is down almost 15% from its June high, while the S&P 500 on average has managed to post a small gain in the same period.… Read more

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These 11% Dividends Have Crashed 43% (They’re Just Getting Started)

You may not know it, but big pension funds are pulling billions of dollars out of one sector, leaving behind a group of stocks these big players will never buy again.

That’s a clear signal that we need to avoid these stocks, too.

I’m talking about oil companies. In New Jersey, for example, legislators are trying to ban the state pension fund from fossil fuels. The state’s Fossil Fuel Divestment Bill has bipartisan support, mainly because oil has been a clear loser for investors. We can clearly see this when we look at the chart of the biggest oil major of them all:

Exxon’s Long Decline

Exxon-Mobil (XOM) peaked at a $500-billion market cap in 2007 and has been in a downward spiral since, pushed lower by the 2014 and 2020 drops in oil prices.… Read more

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These “Yield Traps” Have Cratered 58% (they’ll never bounce back)

Right now, thousands of Americans are making a mistake that threatens to lock in the losses they’ve suffered in this downturn.

Worse, these folks will be stuck on the sidelines in the rebound, watching helplessly as other stocks soar and their holdings stagnate, or even drop further.

I’m talking about people who hold master limited partnerships (MLPs) and buy into the myth that these companies—owners of oil and gas pipelines and storage facilities—are simply “toll bridges,” making them a relatively safe play on energy.

Worse, many of these folks think MLPs can benefit from the huge glut of oil and gas building up around the globe.… Read more

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Can You Spot the Next 830% Dividend Grower?

I don’t blame you if you think stock picking boils down to a choice between income or growth. That’s how the financial media has framed it for years.

But it’s not. Not by a long shot. In fact, for years, my Hidden Yields service has shown investors that rapidly growing dividends are something of an “early alert system” for red-hot price appreciation. That’s why I always keep an eye out on regular dividend growers, like the list of 56 stocks whose names and tickers I’ll share with you momentarily.

In fact, if patient investors sniff out the right dividend stocks, they’ll hit the trifecta: income growth, higher prices and big, fat yields.… Read more

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5 Safe Oil Yields Up to 8.5% (With Stocks That May Spike, Too)

Energy stocks are en fuego again after a drone strike on a Saudi oil facility. We’re going to (as usual) skip the geopolitical talk and discuss oil dividends that will benefit from this disruption.

While “buy and hope” investors ponder basic ways to play the spike, you and I know that about half of energy returns come from payouts. Check out the orange line below, the total return of a popular energy index with dividends. It’s nearly double what the stock prices themselves returned:

The Real Key to Oil Riches? Dividends.

No dividend is guaranteed forever. But broadly speaking, income has been a far more reliable source of energy-sector returns than price performance, making up nearly half of energy’s total returns since late 1998.… Read more

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9% MLP Yields for 92 Cents on the Dollar (and No K-1!)

“Hey Brett… you joined two partnerships last year?”

What? I didn’t. Or I thought I didn’t. In reality, I did–by buying shares in not one but two master limited partnerships (MLPs).

One of them was Enterprise Products Partners (EPD) and while I can’t recall the other, I can vividly the annoyed look on my accountant’s face like it was yesterday.

Master limited partnerships (MLPs) are required to issue you a K-1 package at the end of the tax year. These are generally headaches for the person who does your taxes (whether it’s you, or a professional).

That year my accountant calmly but sternly asked me to stop buying MLPs in my personal portfolio.… Read more

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The Perfect Pullback Rx: These 28 Upcoming Dividend Hikes

You can double your money in perfectly safe, well-known dividend stocks. But only if you know the secret! Novice income investors gravitate toward higher current yields, but often that can result in hitching your sleigh to stagnant stocks with equally stagnant dividends.

For monster total returns, we want to pay attention to dividend increases. Because these hikes don’t just bump up the yield on your initial investment – they also trigger stock-price increases, too. If a stock is already paying out 3% but then juices its payout by 10%, investors will see that new 3.3% yield and buy more shares. That buying will drive the stock’s price up, and the yield back down, eventually toward 3%.… Read more

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These 2 MLPs Outrun Lower Oil Prices With 100%-Plus Earnings Growth

Energy commodity prices have been extremely volatile of late. Crude oil is down more than 20% in the past month, while natural gas is up more than 40% over the same period.

The result is that some of the most stable names in the energy sector, master limited partnerships (MLPs), have lost 6% or more in the past month, wiping out the benefit of an attractive annual dividend yield.

However, one thing that remains constant over time is that the market rewards faster earnings growth in stocks, even with income-oriented names. Higher profits can lead to higher future dividends, which in turn helps investors build wealth, even as inflation is rising.… Read more

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Five 5% Payers That’ll Fund a “Dividends-Only” Retirement

Do you have a reliable way to generate monthly cash flow from the dividend stocks you own today? If not, why not?

Many “first-level” investors hope that their stocks will go higher so that they can sell them for cash flow. But, if you follow rich people, you’ll notice that they never actually sell any assets – they instead use them to generate more and more cash flow.

We can – and should – do the same. We can “tap” dividend stocks for regular cash flow. We can even turn the shares we own today into monthly dividend payments that provide us all the income we ever need for the rest of our lives (and we can hang onto the shares and enjoy price upside, too!)

Some financial advisers (many of whom haven’t even retired successfully themselves!) pitch a “4% withdrawal rate” where you “safely” withdraw roughly 4% each year that you use as spending money.…
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7 July Dividend Hikes to Buy for 12% Yearly Gains, Forever

Most people are chasing big dividend payers right now in this “3% world” we live in. Meanwhile, a small group of “hidden yield” stocks are quietly handing smart investors growing income streams PLUS annual returns of 12%, 17.3%, or more.

Let’s talk about how to find these stocks, and bank 12% returns or better every single year, by following a simple two-step formula.

See, everyone wants dividend stocks with good current yields. It’s easy to scan a newspaper or financial website and pick out the stocks that are paying 3%, 4%, 8% or whatever number you might consider “good.”

Yet that’s NOT the right way to pick dividend stocks.…
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