AI’s “Hidden” Dividends (3 Payers With Payouts Soaring 88%+)

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AI’s “Hidden” Dividends (3 Payers With Payouts Soaring 88%+)

AI stocks are booming—but they’re an absolute “dividend desert” for us contrarian income-seekers.

Or are they?

Most tech stocks—and I’d put AI darling NVIDIA (NVDA), with its pathetic 0.02% yield, at the top of the list here—don’t pay dividends when they’re growing quickly.

Only later, when growth slows, do they “find religion” and return cash to shareholders as dividends and buybacks. That’s too bad for those of us who like to have more than one way—price gains—to book returns on our stocks.

But what if we could find a way to grab more of our AI profits as dividends—particularly growing dividends—so we don’t have to “buy and hope” for price gains alone?… Read more

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This Is Where We’ll Find Winning Stocks (and Surging Dividends) in ’24

Let’s cut to the chase on dividend investing in 2024: our strategy this year will be all about interest rates.

Sure, there are other trends out there, like AI. And yep, there’s some steak behind the sizzle.

But when it comes to grabbing fast-growing—and high-yielding—payouts at the right times, rate moves will rule the roost. That’s not much of a surprise, really, as stocks have hung on Jay Powell’s every utterance for the last couple years.

But here’s the twist: Powell won’t be the headline-grabber in ’24. Look for him to fade into the background, with the Fed likely to move rates lower, maybe by a percent or so.… Read more

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New Year, New Portfolio: Start With These 2 “Dividend Deals”

Let’s kick off 2024 with great news: despite the Santa Claus rally, there are still some sweet dividend deals on the board—many hiding in plain sight.

In a second, we’ll name names and dive into my 2024 outlook, including my forecast for a 2024 recession and exactly what we’re going to be looking for in dividend payers (and growers) this year.

First, let’s tee up 2024 by reviewing the game tape from the last quarter of ’23.

Buying Fear Drove Fast Double-Digit Gains in Late ’23

Readers of my Contrarian Income Report service will recognize the Gabelli Dividend & Income Trust (GDV), one of the picks we grabbed when panic was running high in October.… Read more

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4 Reasons Why REITs Will Soar in 2024 (and 2 Tickers to Buy Now)

Over the last few days, not one but three signals I use to read the tea leaves in REITs—one of our favorite places to hunt for big, and growing, payouts—all flashed “buy.”

That means it’s finally time to start selectively picking up these income plays. I’ll name two with dividends on multi-year growth runs below. Tickers in a sec. First, let’s talk timing. Here’s why REITs are jumping up our dividend priority list now:

  • They haven’t followed stocks higher in ’23—so our “landlords,” which own everything from shopping malls to warehouses, apartment buildings and cellphone towers, are cheap in relation to the popular kids of the S&P 500.

… Read more

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3 REITs With a Hidden “Double Shot” of Upside (With 62%+ Dividend Growth)

There’s a “double shot” of upside waiting for us in real estate investment trusts (REITs) right now, and some of these companies—like the 3 we’ll discuss below—are so stuffed with cash they can’t hike payouts fast enough!

REITs are among our favorite dividend plays because:

  • They’re “pass through” entities—REITs own property ranging from apartments to seniors’ homes and malls. They simply collect rent checks, take out enough to keep the buildings in good shape, then hand the rest to us.
  • They pay zero corporate tax, so long as they pay out 90% of their net income as dividends. This tax “hall pass” means even more dividends (and faster dividend growth!)

… Read more

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These Ignored Stocks Deliver 100%+ Payout Growth, 6.9% Dividends

Investors are sitting on a shot at 100%+ dividend growth and a safe 6.9% yield—and most don’t even know it.

The route to this dividend bonanza runs through real estate investment trusts (REITs) that own apartment buildings. These landlords are raking in cash, with US rents skyrocketing by double digits in the last nine months. (We’ll discuss three specific names shortly.)

Higher cash flows translate straight into surging dividends because REITs are “pass-through” investments: they collect the rent, take out what they need to keep their tenants happy (and renewing their leases!) and send the rest our way.

This pass-through structure is no formality.… 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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Which REITs are Collecting 98% of Rents (and Which are Stuck at 61%)

Almost One-Third of NYC Restaurants Missed June Rent, Survey Finds

Scan the business headlines (and let’s be honest, who actually reads anymore?) and we’ll see ominous headlines like this. Makes us wonder who would want to be a landlord in this economy?

It’s not just NYC. Here in California, most restaurants are, once again, not allowed to offer indoor dining. Epidemiology arguments aside, our beat here is money, and how many restaurants are supposed to make money right now I do not know.

If they’re not making money, who knows if they’re paying the rent. Taking that a step further, we might also question who wants to own any real estate investment trusts (REITs)?… Read more

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How to Play FAANG Stocks for Safe 9.7% Dividends and Upside

At my Contrarian Income Report service, we hunt down huge dividends on the regular. Right now, our portfolio is knocking out a 6.9% average payout from 16 real estate investment trusts (REITs), stocks and closed-end funds (CEFs).

We’ve grabbed serious price gains, too: since launch in 2015, CIR has delivered a 12.5% annualized return. Not bad for a set of “boring” income plays!

Beyond Big Yields

Even though our CIR club is “high yields only,” I get that many folks look to stocks with low (or no) dividends for gains, too: names like Apple (AAPL), whose 1% yield won’t get it within a mile of Contrarian Income Report.… Read more

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5 Cash Machines That Soar With Rates (40% dividend growth ahead)

If rising rates and this whipsawing market have you wondering where to put your cash now, don’t worry: you’re not the only one.

The good news? I’ve got 5 perfect contrarian buys for you to snap up now.

Each of these 5 stocks is set to pull off something that’s proven to line shareholders’ pockets when rates spike: all 5 “outrun” rates by giving us a high dividend yield now or fast payout growth—and sometimes both in one buy!

More on these 5 smart rising-rate plays in a moment.

First, we need to talk about another group of stocks that might look like a great contrarian opportunity now, but is anything but.… Read more

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