Dividends Soon to Be “Unleashed” for Hikes Up to 100%

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Dividends Soon to Be “Unleashed” for Hikes Up to 100%

These dividends are about to break free from their regulatory shackles. Once the cuffs are off, we’re going to see payout hikes up to 100%.

Even the dividend growth “laggards” in this group are due for 11% and 17% hikes. As these payouts pop, their stock prices may certainly follow.

Here’s why.

For the past decade, income investors have overlooked the big banks. The Great Recession burned a hole in the brain of every retiree who lived to tell about it.

The U.S. Treasury bailed out America’s financial sector with the Troubled Asset Relief Program, which disbursed roughly $427 billion to buy toxic assets from (and even equity in) U.S.… Read more

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The Beautiful, Boring Secret to Landing 7% Dividends

As Wall Street loses its mind over a long bond that pays a lousy 1%, we level-headed income investors are going to stay calm. And 7.7% on.

Yes, we “prefer” (hint, hint) dividends that are 7X the weak 1% yield the wonks are clamoring about. I’ll get to the specifics on these retirement makers—which we can buy as easily as common stocks—in a moment. First, let’s appreciate their dividend grandeur.

The Fed is content to sit on a near-zero benchmark rate until at least next year if not 2023. Compounding the problem is that yields on traditional blue chips, while always insufficient, are a downright mockery right now—the 1.55% current yield on the S&P 500 is its lowest point in 15 years.… Read more

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Week in Review: Stocks Ignore Political Noise and Continue Rebound

The Dow Jones Industrial Average emerged from correction territory this week, as investors applauded earnings in the financial sector. At the same time, markets chose to ignore the now record-long U.S. government shutdown and ongoing Brexit saga in the U.K.

Financials Start Earnings Season On Positive Note

Bank of America (BAC), Citigroup (C) and Goldman Sachs (GS) all traded higher this week, after posting solid quarterly results. The earnings news was not all rosy however, as Morgan Stanley (MS) fell short of expectations on Thursday. Outside of the financial sector, Ford Motor (F) also cut profit expectations this week.

As the following chart shows, quarterly reporting activity will continue to pick up next week and the floodgates really open in February.… Read more

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Week in Review: U.S. Markets Stabilize as Government Shutdown Continues

Investors stepped in this week to do some value shopping, leading to the longest winning streak for the S&P 500 since last September.

The minutes from the December FOMC meeting were released on Wednesday, suggesting a more patient outlook for future interest rate increases. In fact, Fed funds futures are now pricing in just a 19.2% probability of an interest rate hike in 2019, compared with a 10.4% chance of a rate cut.

According to Bespoke Investment Group, energy names and other cyclical groups have been behind the market’s recent winning streak, which are precisely the names that were a drag in 2019.… Read more

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3 GOP Tax Plan Winners to Buy Now – and 1 to Watch

You and I both know the spoils from the GOP tax plan will go right into shareholders’ pockets—so let’s discuss how we can grab our piece of the action. And outsized dividends with 20% price upside to boot!

It all comes down to zeroing in on companies that do 2 simple things. I’ll reveal what they are—and give you 3 terrific “tax plan buys” as I go along.

But first, let me be clear that I’m not taking a side here: no matter if you think the tax plan is a masterstroke or a catastrophe, as an investor, you need to check your politics at the door and take a hard look at the landscape in front of you.…
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A Crash-Proof Way to Bank 13% a Year

If you’re worried that you’ll struggle to profit from stocks for the next few years, you shouldn’t. There are still plenty of outsized gains waiting to be had—and today I’m going to show you exactly how to get in on the action.

First, we need to talk about what’s making stocks harder to invest in these days. It boils down to two points:

  1. Valuations are high.
  2. Interest rates are rising.

When stock valuations rise too far, they inevitably come back to earth. The S&P 500 is now trading at a price-to-earnings ratio of almost 25—the highest level in a generation except for two other times: 2000 and 2007.…
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An Instant 4-Fund Portfolio for $48,000 in Retirement Income

A couple days ago, we showed you how to get $4,000 in monthly income from just 4 stocks.

A bonus? Each of these buys pays dividends every single month—precisely when your bills roll in.

That $4,000 number was no accident; it’s the average amount a 65- to 74-year-old couple in the United States spends every month, according to the Bureau of Labor Statistics. That makes this a great number to shoot for when you’re building your own retirement nest egg.

And today we’re going to go further, with 4 funds that give you an extra margin of safety while you’re pocketing the same amount of income—a nice $4k a month—in your golden years.…
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