Why Buy “Broke” Blue Chips? These 5 Small Caps Pay up to 17%

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Small-cap stocks haven’t been this cheap in decades. This valuation advantage gets interesting when we add big fat dividends and today, we’ll discuss five cheap small stocks yielding between 8.3% and 17.1%. (That’s no typo by the way—we only talk serious dividends here at Contrarian Outlook!)

The Apples, Google and Microsofts of the world are priced like luxury goods. Smaller stocks, meanwhile, have been left at the discount rack. Let’s shop:

  • S&P 500: 21.2 times earnings (pricey!)
  • S&P MidCap 400: 15.4 times (better…)
  • S&P SmallCap 600: 14.7 times (bingo!)

The valuation spread between the S&P 500 and S&P 600 hasn’t been this wide since Bill Clinton was wondering whether dot-com was one word or two.… Read more

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In case you haven’t heard, the Federal Reserve is about to cut interest rates. That is big news for this trio of dividend payers, dishing between 11.1% to 12.6% per year.

These stocks survived the high-rate cycle. Are they about to thrive as the Fed eases?

Yeah, probably—so long as the Fed doesn’t also put them out of business in the process! Let me explain…

Mortgage REITs (mREITs): High Risk, Even Higher Dividends

Mortgage real estate investment trusts, colloquially known as mREITs, are a real estate niche

When we think about REITs, we typically picture equity REITs. They own (and sometimes operate) physical real estate like apartments, strip malls, hospitals, ski resorts.… Read more

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