Dogs of the Dow 2024: Cheap Dividends, But Are They Values?

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Dogs of the Dow 2024: Cheap Dividends, But Are They Values?

The 2024 Dogs of the Dow are particularly homely hounds—which means we’re talking big dividends.

This year’s Dogs yield more than three-times the broader market’s paltry payout. So, should we hold our noses and buy? Let’s grab some peanut butter treats and investigate. But first, a review of the “Dogs” strategy.

The “Dogs of the Dow” strategy means buying the Dow Jones Industrial Average’s laggards. It’s a simple three-step strategy that often outperforms in the year ahead:

  • Step 1: After the final trading day of the year, identify the 10 highest-yielding stocks in the Dow.
  • Step 2: Buy all 10 stocks in equal amounts and hold them for a year.

… Read more

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How to Earn 5%-7% Yields … From Tech?

Our contrarian investing playbook is simple, but not easy.

We buy stocks that others are neglecting. At least currently! This means we secure prices when they are low and dividends when they are high.

Big tech stocks have been bid to the moon recently. But not all Nasdaq plays are expensive. The rally has been narrow, and believe it or not, we have five tech plays paying up to 6.7% available today.

This is a lot of yield in a sector that, sadly, pays less than 1% at large:

Tech Is Back to Yielding Less Than 1%

This is why the sector ranks tenth in dividend yield.… Read more

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When the Market Wiggles, These 5%-13% Yields Don’t Waggle

To retire on dividends, we have just two requirements. They are simple, though perhaps not exactly easy:

  1. Earn safe, meaningful yields. Five percent is our floor, thirteen is our stretch goal. We’ll discuss five stocks in this dividend range shortly.
  2. Keep our principal intact. To do this we’ll focus on “low beta” stocks—shares that move less than the broader market.

Beta says how much (or how little!) an investment moves compared to some benchmark. With stocks, beta is usually going to measure movement against the S&P 500.

Here’s an example. Let’s say a stock has a beta of 0.50.… Read more

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Introducing the 2022 Dogs of the Dow: 10 High-Yield Blue Chips Paying up to 4.9%

Once upon a time, it was hard to find an income strategy much better than the idiot-proof “Dogs of the Dow.”

And hey, in this wild market in which the S&P can drop 2% in a couple of hours, this sounds pretty good. Let’s buy some blue chips and earn 3x more income than the broader market.

Which Dogs are paying the biggest dividends for 2022? As a group these battleship businesses are paying 3.8% versus just 1.2% for the broader market. We’ll review them in a moment. First, the Dogs of the Dow rules:

  • Rule 1: After the final trading day of the year, identify the 10 highest-yielding stocks in the Dow.

… Read more

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22 Dividend Stocks for $68,400 in Annual Income

If you’re as nervous about the 2022 financial scene as I am, we should take this holiday week to review 22 reliable dividends. I’m talking about generous payers that are prepared for any market, bull or bear.

In a market where liquidity is drying up fast, sign me up for safe dividends plus additional profits. The asset price “fuel” that our Federal Reserve has provided since March 2020 is disappearing. Fed Chairman Jay Powell is being forced by inflation numbers to reduce the massive cash the Fed has been providing the financial markets.

So, let’s talk about 22 stocks with sizable and stable dividends averaging 6.8% that can double, triple, maybe even quadruple your portfolio yield overnight.… Read more

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It’s Never Been Easier to Retire on Dividends (Can Be Done on $600K)

Let me start with a special shout out to our dedicated readers at Barron’s. Here at Contrarian Outlook, we’ve been drawing up the playbook to retire on dividends for years (Two years ago, we literally wrote the book on the retirement strategy.)

So it was a hoot to see Barron’s run a cover story about retiring on dividends. But I have a bit of constructive criticism about the piece: the dividend stocks highlighted in the feature article had yields too low to actually retire on.

The magazine’s 10 buys included Coca-Cola (KO), International Business Machines (IBM) and Johnson & Johnson (JNJ) and had an average current yield of 4.1% between them (as of the time the piece was written).… Read more

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It’s Never Been Easier to Retire on Dividends (Can Be Done on $600K)

Let me start with a special shout out to our dedicated readers at Barron’s. Here at Contrarian Outlook, we’ve been drawing up the playbook to retire on dividends for years (Two years ago, we literally wrote the book on the retirement strategy.)

So it was a hoot to see Barron’s run a cover story about retiring on dividends. But I have a bit of constructive criticism about the piece: the dividend stocks highlighted in the feature article had yields too low to actually retire on.

The magazine’s 10 buys included Coca-Cola (KO), International Business Machines (IBM) and Johnson & Johnson (JNJ) and had an average current yield of 4.1% between them (as of the time the piece was written).… Read more

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9 Beaten-Up Tech Dividends Up to 5.9%

The Nasdaq’s recent quick 11% slip earned the “correction” label. This alarmed many newbie investors who bought technology shares hoping they would keep heading higher.

We careful contrarians, on the other hand, welcome pullbacks like these. Being focused on income, we are now able to go shopping and secure more tech dividends per dollar.

The only “catch” is that we shouldn’t wait long to buy the bargain tech payers. Remember the Nasdaq’s bear market in late 2018? It bottomed out in less than three months.

The tech index sank even farther, much faster, in 2020, sinking 30% in just over a month.… Read more

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How to Play Stock Spinoffs for 176%+ Payout Growth, 200%+ Upside

Let’s start 2021 with a proven strategy for grabbing two growing income streams in one buy. Plus, we’ll nicely set ourselves up to bank double-digit price gains to boot.

The strategy? Simple: we’re buying dividend-paying stocks poised to spin off one of their businesses into a brand-new dividend-paying stock. When that happens, we wind up with two or more quarterly dividends where there used to be just one.

Two other things you should know: our “new” dividend(s) will likely grow faster than our original payout! And we won’t have to do anything to get this extra cash.

I’ll give you a telltale sign to look for as we move to front-run the next “dividend split” in a moment.… Read more

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10 Blue-Chip “Dogs of the Dow” for 2021, with 4.1% Dividends

For income investors, dividend strategies don’t come any easier than the “Dogs of the Dow.”

But does this simple technique still work?

We’ll look at the 2021 Dogs, and their attached dividends (and prospects) in a moment. Their yields aren’t too shabby, averaging 4.1% in a 1% world! First, let’s review the mechanics of the popular contrarian strategy:

  • Step 1: After the final trading day of the year, we identify the 10 highest-yielding stocks in the Dow.
  • Step 2: We buy all 10 in equal amounts.

That’s it. In just a couple of quick steps, executed just once every year, we can put together a mini-portfolio of 10 blue-chip stocks that typically out-yield the S&P 500, and currently offer 2.5 times more dividends than the broad market index.… Read more

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