I SPY 4 Dividends Circling the Drain in Trump 2.0

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I SPY 4 Dividends Circling the Drain in Trump 2.0

We’re more than halfway through Year 1 of Trump 2.0, and I stand by what I said before Inauguration Day: This administration has ushered in a stock picker’s market.

In other words, investors who make smart moves into, and out of, individual dividend payers will do the best in the coming three-and-a-half years.

That puts holders of SPY, which must hold the entire S&P 500, in a jam. The S&P 500 trades at a nosebleed 25-times earnings, and SPY has no manager to shift away from overbought names and toward overlooked bargains. That’s dangerous ground.

With that in mind, let’s run through four tickers (all of which, yes, are SPY holdings) I urge you to avoid—or dump if you’re sitting on them now.… Read more

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7 ‘Stability Stocks’ With Low Volatility, High Yields

Worried about a market pullback?

Let’s discuss seven sturdy dividends with yields up to 8%. These are “low beta” stocks which means they stand tall when the market sinks. Low beta stocks may still go down, but they tend to regress less than average.

And generally speaking, the lower the beta, the more cushion to the downside. The lower a stock’s beta, the less volatile (the less it moves) compared to a benchmark (like the S&P 500). It’s really easy:

Beta more than 1 = more volatile than the market.

Beta less than 1 = less volatile than the market.

Then we want to pair low beta with high dividend yields.… Read more

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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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