5 Monster Tech Dividends (Up to 10.8%)

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Why choose between dividends and growth when we can have both?

Thanks to popular payout programs from the likes of Apple (AAPL) and Microsoft (MSFT), investors can buy a growthy tech stock and even enjoy a little income on the side.

“63% of the (information technology) sector constituents paid a regular dividend,” says Todd Rosenbluth, Head of ETF & Mutual Fund Research for CFRA. In other words: While tinier tech stocks might have to plow everything into M&A, larger tech stocks that have already reached scale generate lots of cash—which they can shower shareholders with.

But there’s just one catch with these tech dividends.… Read more

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Bear markets can be painful, but they also create “once-in-a-decade” buying opportunities for dividend investors. For example, there are four big names yielding between 9.9% and 15.9% that are literally the leaders in their respective industries. (We’ll review them shortly.)

Bull markets simply don’t boast yields anywhere this high. And double-digit yields can drastically change a retirement game plan.

I’ve complained for years that, if you had a million bucks to plunk down on blue chips and bonds, you’d only be able to wring out about $20,000 to $30,000 in dividends and interest each year. But right now, you can take a nest egg half that size, and generate anywhere between $49,500 to $79,500 annually in dividend cash.… Read more

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Income hunters that made their way into real estate investment trusts (REITs) at the start of 2019 are rolling in more than rent checks right now. Not only did they enjoy the sector’s generous dividends, they enjoyed big price gains to boot.

Even the “dumbly indexed” Vanguard Real Estate ETF (VNQ) peeled off a sweet 28.9% in total returns last year. That’s its best showing since 2014, and more than double its average annual return of 11%-plus over the past decade.

But do these big 2019 gains mean that we’re due to regress in 2020?

I’ve previously warned about the dangers of holding REITs whose fundamentals are out of whack with its valuation.… Read more

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Smart income investors know that the best REITs (real estate investment trusts) do just fine as rates rise. That’s been the case historically, and they’re rally again during this rate hike cycle too.

Why? Because elite landlords simply keep raising their rents.  These higher cash flows translate to higher dividends, and higher stock prices, regardless of what the Fed is up to.

For example, almost three years ago I recommended Medical Properties Trust (MPW) to my Contrarian Income Report subscribers. It was paying nearly 8% at the time – discarded to the bargain bin because the first-level types fretted that higher rates would harm its ability to collect rent checks from its hospital operators.… Read more

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The yield on the benchmark, 10-year U.S. Treasury note has moved above 3% in May, which is the highest it’s been since 2011.

This is notable to REIT investors for multiple reasons. First, higher interest rates (both short-term and long-term) mean that bank CD’s and other lower-risk income investments are offering higher competitive yields.

Of equal note, is the fact that rising long-term interest rates are now factoring into higher discount rates for fundamental valuation models. In other words, investors will now require higher dividends to justify current valuations and be compensated for the rise in rates.

I believe that investors consistently reward growth in stocks, even with more income-oriented groups like REITs.…
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Most of your friends are going to struggle to make any money in U.S. stocks for the next five to seven years. They’re battling not one, not two, but three major headwinds:

  1. Low yields,
  2. High valuations, and
  3. Rising interest rates.

Historically, half of the stock market’s returns (or more, depending on the study you believe) have come from dividends. With the S&P 500 paying just 1.8%, the math isn’t promising.

An expensive market is also problematic because it makes rising multiples unlikely. The S&P index trades for 25-times earnings today – where can it really go from here but down?

Finally, rising interest rates are a concern for many income investors.…
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What exactly does the Catholic Church think about dividends?

A lot, as it turns out. The United States Conference of Catholic Bishops outlines a number of principles and policies in a roughly 6,000-word document you can find here. Highlights include:

  • Protecting human life
  • Protecting human dignity
  • Reducing arms production
  • Pursuing economic justice
  • Protecting the environment
  • Encouraging corporate responsibility

Also the USCCB has dual-mandate that requires “a reasonable return on its investments and is required to operate in a fiscally sound, responsible and accountable manner.” In other words, just like you and I, the Catholic Church expects returns.

The Global X S&P 500 Catholic Values ETF (CATH) invests in hundreds of S&P 500 components that qualify according to the USCCB’s stated values.…
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