4 Tech Dividends Up to 13.3% – Buy 1, Sell 3

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Technology changes so fast these days that firms in the sector can see their profits quickly vanish.

Sadly, their dividends can disappear just as quickly!

Recently, we’ve seen companies such as Windstream (WIN), Frontier Communications (FTR) and Allegheny Technologies (ATI) cut or outright drop their dividends, with sky-high yields suddenly evaporating, leaving retirement investors in the lurch.

More pain could be on the way. A trio of tempting tech-stock yields, including two double-digit payouts, look destined for failure.

These stocks might seem like a shoo-in as contrarian investing targets. By simply buying over-punished stocks and waiting for a reversion back to a positive mean – think the “Dogs of the Dow” – investors could collect twofold on both the recovery and the elevated dividends.…
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Warren Buffett doesn’t just beat the market – he makes a mockery of it. Since Buffett took control of Berkshire Hathaway back in the middle of 1965, the conglomerate has more than doubled the average annual gain of the S&P 500.

But here’s something you won’t hear anywhere else – Buffett doesn’t love all of his stocks equally. In fact, there are three dividend dogs that I bet he’d sell today if he could get away with it.

Let’s look at six of Buffett’s current income plays to separate his three buys from his three sells.

SELL – Verizon Communications (VZ)
Dividend Yield: 5%

Verizon Communications (VZ) is technically in the Buffett boat, but it’s not exactly a high-conviction pick anymore.…
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When blue chips get too popular – like the five I’m going to show you today – these “safe stocks” can actually be dangerous to continue holding in your portfolio.

The problem with blue-chip stocks? Call it the “Curse of the Dow.” The Curse says a stock that joins the Dow Jones Industrial Average will essentially hit a wall, underperforming in the ensuing months compared to how it performed before ascension. It’s not perfect, but it’s close – since 1999, 15 of 16 stocks that have joined the Dow have averaged 1% gains over the next six months, but averaged 11% gains in the six months before inclusion.

Why? There are a few factors, but one of the most prevailing is that by the point a stock has joined the Dow, it’s typically nearing the end of its growth ramp and reaching the slower-growth “mature” part of the business cycle. …
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