A “2020-Proof” Way to Get 11% Dividends and a Lifetime of Wealth

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A “2020-Proof” Way to Get 11% Dividends and a Lifetime of Wealth

It’s the most common rule in investing: if you want to cut your risk (and protect your dividends!), you need to diversify.

Yes, we’ve all heard it before, but what most people don’t get is just how much you can damage your finances by not sticking with it—or, conversely, how much you can reap in gains (and safe dividends) by following a smart diversification strategy.

From $0 to $1 Million in Assets … and Back to $0

I’ve seen this play out firsthand; a friend was an early employee at a social media startup that got a big investment from a tech billionaire.… Read more

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This Steady 11.3% Dividend Is Hiding in Plain Sight

If you have $100,000 to invest, you can easily use it to unleash a dividend stream that pays you $940 a month. That’s $11,280 a year in dividends—on just $100K!

I know you’re probably thinking this sounds too good to be true (and you should be!), especially when 10-year Treasuries dribble out just 0.7%, and the typical S&P 500 stock isn’t much better, with a 1.7% yield.

You’re not retiring on either one of those meager payouts!

But $100,000 invested in a fund with an 11.3% dividend yield (like the one we’ll dive into below) gives you a good start toward clocking out, and on a modest nest egg, too.… Read more

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Buy This, Not That: These 7%+ Alternatives Crush High Yielding Stocks

The market’s fall pullback is starting to reverse itself, but don’t worry: there are still bargain dividend payers yielding 7.4%+ dividends to be had out there.

But investing (along with everything in our lives!) has changed. You simply won’t get safe, high payouts by clutching to old habits and buying big-name, high-yielding S&P 500 stocks. The real dividend bargains are in closed-end funds (CEFs), which give you higher payouts, greater safety and often better returns over the long haul.

To show you what I mean, let’s line up three S&P 500 “dividend darlings” against the CEF competition and see how they compare.… Read more

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How to “Double Dip” This Dip (and Lock in Yields Up to 10.8%)

Is it time to buy the dip?

Almost. And when we do, let’s not just “buy” an index fund (or worse, a lame ETF!) and “hope” that we timed it right. No, no, we contrarian income seekers can do better.

Let’s instead choose investments that cash flow. In a moment we’ll talk about one that yields 7.4%.

And let’s not buy them at mere “face value” either. Only the unsophisticated first-level types, as our man Howard Marks calls these marks, pay full price! We can, and should, demand discounts in addition to the pullback.

The major indices have officially “corrected” from their September highs (which is typically defined as a 10% decline).… Read more

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How to Play the Presidential Election for 10.7% Dividends (and Upside)

What are we dividend investors to make of this presidential election? Are we supposed to buy now or wait to see what happens in November?

Before we get into that—and discuss a 10.7% dividend that’s very appealing pre–E-Day—there’s one thing we must do: set aside our personal politics and stay laser-focused on the investing angle here.

With that said, there are two things I see as likely no matter who wins this thing:

  • A post-election rally: According to Deutsche Bank global chief strategist Binky Chadha, stocks typically rally 5% from Election Day until the end of the year when an election is close, regardless of the result.

… Read more

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5 Funds That Pay $2,375 a Month on a $300K Portfolio (forever)

I’m going to show you a dividend portfolio that gets you an incredible 9.5% payout—and you won’t have to take on stomach-churning risk (which, let’s face it, no one’s keen on doing now) to get it.

Imagine what a 9.5% dividend could mean. Take a $300,000 portfolio and you’ve suddenly got $2,375 in passive monthly income. A million bucks? You’re talking about almost $8,000 a month—miles ahead of the $1,500 a month you’d get if you just put it in an S&P 500 index fund.

Here’s the kicker: the investments in this five-fund portfolio, all closed-end funds (CEFs), invest in the same companies that make up the S&P 500.… Read more

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This Powerful Secret Lets You Retire on a $527,000 Nest Egg

Most folks think retiring on $527K is a dream—but most folks haven’t heard of high-yield closed end funds (CEFs). With yields as high as 22%, these unsung income plays can fast-track your race to financial independence.

Here’s how: let’s say you’re looking to clock out and use your portfolio to replace $50,000 in yearly employment income. Many financial advisors will tell you that the most you can withdraw out of a conservative stock portfolio is 4% a year (this is known as the 4% safe withdrawal rate). Simple math tells us that this means you will need $1,250,000 to retire.… Read more

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These 7.8%+ Dividends Are Hiding in Plain Sight (You’ll Never Guess Where)

With coronavirus spreading and China’s economy being shut off from the rest of the world, you’re right to ask one (or both) of the following questions:

Is this rally justifiable? Is it still a good time to buy in?  

Profits (and Dividends), Not Fear

Here’s the good news: this market is rising on fundamentals, and ignoring overwrought media headlines that will eventually be forgotten. So yes, now is a good time to buy in. And contrary to what most people think, there’s still a good shot at high (I’m talking 7.8%+) dividends out there for us, too. Those payouts are in a corner of the market too many people never think to check.… Read more

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These 7.8%+ Dividends Are Hiding in Plain Sight (You’ll Never Guess Where)

With coronavirus spreading and China’s economy being shut off from the rest of the world, you’re right to ask one (or both) of the following questions:

Is this rally justifiable? Is it still a good time to buy in?  

Profits (and Dividends), Not Fear

Here’s the good news: this market is rising on fundamentals, and ignoring overwrought media headlines that will eventually be forgotten. So yes, now is a good time to buy in. And contrary to what most people think, there’s still a good shot at high (I’m talking 7.8%+) dividends out there for us, too. Those payouts are in a corner of the market too many people never think to check.… Read more

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This Bizarre Trend Delivered a 31.25% Gain in 2019 (2020 Could Be Even Better)

One of the weirdest trends over the last year has gone largely unreported. Despite stocks surging 30% in a year, investors are still selling stocks more than they’re buying.

It’s hard to get your head around this fact, but the data says it’s true. According to data from Refinitiv Lipper, investors actually withdrew $192.3 billion from mutual funds and ETFs—the largest amount of outflows on record for a single year.

Stocks Soar—and Investors Sell?

The concept here is a little complicated, but it’s crucial to understand. An ETF or mutual fund pools together cash from its investors, which it then uses to buy stocks, bonds or whatever its mandate says it needs to buy.… Read more

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