How to “Refinance” Your Dividends (for Cheap 8%+ Yields)

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How to “Refinance” Your Dividends (for Cheap 8%+ Yields)

Were you able to refi your home when rates were low? I hope so.

Don’t tell my wife, but we almost missed the low-rate era. My better half kept asking about refinancing. “Yeah, yeah,” I said. “We will when rates bottom.”

In early 2021, they took off right under my nose. I stare at the bond market all day and nearly missed this thing!

Fortunately, we got a pullback in rates. I called my buddy, a mortgage broker, who dialed me in with a sweet 2.2% rate on our remaining balance. Two point two!

Had we missed that deal, I’d never live it down.… Read more

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21 REIT Dividends I Love (and Hate!) for 2021

Can we income seekers safely get back into REITs (real estate investment trusts) next year?

With the yield on the S&P 500 about to drop to a sad 1.5% (thanks, Tesla (TSLA) addition), renewed REIT-hope sure would be nice! The landlord industry index Vanguard Real Estate ETF (VNQ) pays 3.5%. That’s a dividend oasis in this zero-point-nothing world.

Once upon a time, VNQ performed in-line or better than the blue-chip index. It was a pretty good deal, as you could double your dividend and keep up with the Joneses’ portfolio with less heartburn.

Then, April 2020 came along, tenants stopped paying rents, and REITs-at-large got crushed:

A Good REIT Run While It Lasted

Does the fork-in-the-road above represent a paradigm shift or relative value?… Read more

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Avoid Dividend Cuts. Grab 1,600% Upside (2 Easy Steps)

These days, I’m hearing from a lot of folks who are pretty nervous, bracing for yet another round of dividend cuts to hit them out of the blue.

It’s understandable. Recently, we’ve seen plenty of dividend “sacred cows,” like Wells Fargo (WFC), mall landlord Simon Property Group (SPG), and senior-care operators Welltower (WELL) and Ventas (VTR) cut or eliminate their payouts.

In the second-quarter of 2020, 244 firms increased their dividends, according to Howard Silverblatt of S&P Dow Jones Indices. That sounds good until we see that 639 companies decreased their payouts. In other words, dividend investors were two-and-a-half times as likely to receive a pay cut as they were a raise.… Read more

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