Let’s Start Trump 2.0 By Dumping These 6 Losers

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Let’s Start Trump 2.0 By Dumping These 6 Losers

We are now officially into Trump 2.0, and here’s the first thing I can tell you:

This new administration will hurt the returns of folks who simply buy an index fund like the SPDR S&P 500 ETF Trust (SPY) and call it a day.

What we’re now embarking on is a true stock picker’s market—a time when prudent moves into, and out of, individual dividend payers will be key.

That puts holders of SPY, which has to represent the current makeup of the S&P 500 index, in a tough spot. Since it has no manager who can buy and sell as markets shift, SPY holders are locked in as losing stocks cancel out some or all of the ETF’s winners.… Read more

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Trump 2.0 Is Nearly Here. These Are the 2 Dividends to Buy

I think it’s clear by now that Trump 2.0 is going to look different from Trump 1.0.

Some areas, like tariffs, look similar to the first time around (though we expect more of them in the second term). Others are totally different. (Hands up if you had a potential crackdown on processed food by an RFK Jr.-led HHS on your bingo card.)

“Big Food” to Take a Hit, Fertilizer Stocks a Smart Buy in Trump 2.0

Let’s start with food stocks, which, as mentioned, are now a target for RFK Jr., should he be confirmed as HHS secretary. To be sure, that’s bad news for General Mills (GIS), which dropped following the election and again when RFK Jr.’s… Read more

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This Popular ETF (and These 6 Stocks) Are Set to Lose in Trump 2.0

We are drowning in post-election stock-market predictions, so let me go ahead and throw another one on the pile:

This new administration will hurt the returns of folks who simply buy an index fund like the SPDR S&P 500 ETF Trust (SPY) and call it a day.

I call SPY “America’s ticker” because, well, most Americans own it. If you’re reading this, there’s a good chance you do, too.

Now, I’m not going to judge (well, maybe I will, but just a little bit!).

Suffice it to say, the coming presidential term will usher in a true stock picker’s market—a time when prudent moves into, and out of, individual dividend payers will be key.… Read more

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2 “Low-Drama” Dividends That Will Soar as Inflation Drops

You know what we’re gonna do about that hot January inflation print that dropped a couple weeks ago?

Ignore it.

Actually, we’re going to go one better and profit from it by grabbing stocks most folks see as “bond proxies”—solid companies whose stocks move up when rates come down.

But wait—isn’t that the opposite of what we should be doing when everyone is panicking that rates are going to stay high—and inflation is going to stick around?

Here’s the thing: Despite the noise, I don’t think that’s going to happen.

Truth be told, the panic we saw following the January CPI release looked like a mini version of last October’s freakout, when 10-year Treasury rates spiked to near 5% and worry was everywhere.… Read more

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A Smart Long-Term Strategy That Delivered 870% Dividend Growth

Today I’m going to show you a two-part dividend-growth strategy that actually made money for one group of investors in the disastrous year that was 2008.

Before we get into the specifics on this technique and an example stock, I want to level with you: I do believe that stocks are likely to head lower in the coming weeks.

That said, if we look one year out from today, I like our chances. But we’re going to give ourselves an added level of security by purchasing stocks with these two traits:

  1. Strong—and better yet accelerating—dividend growth, because a rising payout is the No.

… Read more

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A Downturn in 2023? Maybe Not for These Low-Vol Plays

We are heading into the most telegraphed recession in American history. Federal Reserve Chair Jay Powell said it himself last month:

“As rates go higher, it’s hard to see a soft landing.”

Gee Jay, no kidding. Your Fed is squeezing us directly into a slowdown with these short-term rate hikes and balance sheet drawdowns.

Now I’m not saying it’s the wrong move, Jay. You printed a lot of money in 2020—so much that we fell way behind the inflation curve in 2021. Economic indicators and price numbers are still running hot.

So I’m not surprised to see your feet on the breaks for most of the year.… Read more

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This 2-Part Dividend Strategy MADE Money in ’08 (It’s Perfect for Today)

Today I’m going to show you a two-part dividend-growth strategy that actually made money for one group of investors in the disastrous year that was 2008. It’s an appropriate investing strategy for us to follow now, with the Federal Reserve likely to raise rates until we end up in a recession (assuming, of course, that we’re not in one already!)

Before we get into the specifics on this technique and an example stock, I want to level with you. I do believe that stocks are heading lower still before they ultimately head higher.

That said, if we look one year out from today, I like our chances.… Read more

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1 Simple Step to Double Your Dividends, Slash Your Volatility in 2022

We’re setting up for a volatile 2022, which means this is the perfect time for us to trot out the time-tested dividend-investing technique we’re going to look at today.

It works well during sanguine times. But when the markets get rocky, this “buy low” method really shines. It’s our way to buy more shares when our favorite dividend stocks are in the bargain bin. We can think of it as the ultimate market-timing tool for income investors.

You’ve probably used a version of this technique to build your current nest egg. Methodically investing a set amount of cash is known as dollar cost averaging (DCA).… Read more

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Weekly Market Summary: U.S. Stocks Rebound Despite Boeing and Brexit Drag

U.S. Markets rebuffed negative headlines from around the globe this week, bouncing back from losses suffered earlier in March.

Boeing (BA) lost 11% combined over Monday and Tuesday, following a second tragic crash of its 737 MAX airplane that led to a global grounding of more than 300 of the company’s jets. The decline single-handedly accounted for a loss of more than 300 points on the Dow Jones Industrial Average in 48 hours.

The discussion if, when and how Brexit will proceed continues to play out across the pond, without a resolution. Theresa May lost a second vote in Parliament on Wednesday; and then the decision for the U.K.… Read more

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8 Dividend Dumpster Fires to Sell Right Now

A stock’s yield is only as good as its cash flow because, after all, a dividend is nothing more than a promise from a company.

CenturyLink (CTL) recently reminded us of this. Its promised $0.54 per share dividend exceeded its ability to pay. The firm’s payout ratio of 130% – the percentage of profits that it was paying as dividends – was an absurd overpromise that couldn’t last forever:

CenturyLink’s Payout Promise Was Always on Borrowed Time

CEO Jeffrey Storey insisted his team remained “committed to and confident in our ability to maintain the dividend.” I understood the commitment, but questioned the confidence – taking on debt to pay dividends is a losing game.… Read more

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