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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This Proven 200% Dividend Growth Strategy Is a Peter Lynch Favorite

Let’s dive into this Johnson & Johnson (JNJ) spinoff—because it shows exactly how we can tap “splits” like these to grab not one but TWO income streams growing 200%+.

Because if there’s one thing we need to know about spinoffs, it’s this: they’re about the closest thing to a free lunch you’ll find in investing. Just ask Peter Lynch, who guided his Magellan Fund to an astounding 29.2% annualized return from 1977 to 1990. His take on spinoffs, in his 1989 investing masterclass One Up on Wall Street, was simple:

“Spinoffs of divisions or parts of companies into separate, freestanding entities … often result in astoundingly lucrative investments.”… Read more

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300% Dividend Growth, 15% Yields From These “Anti-AI” Stocks

All the “basic” investors out there are busy chasing this AI-driven rally. It’s like the crypto and meme-stock messes of 2021 all over again!

We’re not following them. Instead, we’re zeroing in on three dividend growers (including one that’s grown payouts 300% in a decade and another that’s yielding 15% for long-term holders) that have been unfairly left behind.

Before we talk tickers, let me say that it’s hard to overstate just how much of this rally is tied to AI. Check out the gains in AI darlings Microsoft (MSFT), Alphabet (GOOGL) and especially NVIDIA (NVDA) in less than six months.… Read more

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Sell These 2 Popular Dividends “on the Rip” Buy These 2 Instead

I’m not going to lie to you: this market is headed for a fall. And if you’re caught holding the wrong dividend payers, you could be in for some serious losses indeed.

How serious? Well, the worst of the four stocks we’re going to delve into below—Cracker Barrel Old Country Store (CBRL)—plunged 26% last year, much further than the S&P 500. If you hold this one, or the other dangerous dividend we’ll discuss below, it’s time to cut your losses and get out now.

Cracker Barrel Plunged in ’22—a Sign of Things to Come?

But we’re not only going to sell today—we’re going on offense, too.… Read more

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Buy These Stocks for $45,600 Income on $600K

Relax. You might already have enough money to retire on.

My favorite dividend stocks let people retire comfortably on $600,000 or so.

Got more cash? Great! You’re in elite company.

Fidelity Investments—apparently happy to share its customer’s financial info anonymously—says it has more than 750,000 seven-figure 401(k) and IRA accounts.

That sounds like a lot, but it means less than 1% of Americans have $1 million or more saved for retirement. And that’s OK—select dividend stocks can help us retire comfortably on $600,000 or less.

Sure, a chunk of money is great. Especially when we can leave it untouched and let it grow.… Read more

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How Long Could $500K Last? Forever, with These Stocks.

Relax. You might already have enough money to retire on.

My favorite dividend stocks let people retire comfortably on $500,000 or so.

Got more cash? Great! You’re in elite company.

Fidelity Investments—apparently happy to share its customer’s financial info anonymously—says it has more than 750,000 seven-figure 401(k) and IRA accounts.

That sounds like a lot, but it means less than 1% of Americans have $1 million or more saved for retirement. And that’s OK—select dividend stocks can help us retire comfortably on $500,000 or so.

Sure, a chunk of money is great. Especially when we can leave it untouched and let it grow.… Read more

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How to Make $500K Last Forever with Dividends

I saw this headline float across my Bloomberg Terminal recently…

There Are More 401(k) and IRA Millionaires Than Ever

(Disclosure and digression: My “Terminal” is Bloomberg.com on my phone. I can thank my long wait at the DMV for my California REAL ID for this story.)

Fidelity Investments—apparently happy to share its customer’s financial info anonymously—says it has more than 750,000 seven-figure 401(k) and IRA accounts.

A chunk of money is great, especially when we can leave it untouched and let it grow. That was no doubt the “secret” of 99%+ of these retirement millionaires. They socked away money for decades and rode the market higher.… Read more

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5 Dividends Growing Up to 20% Per Year

Dividend Aristocrats are popular. Too popular, if you ask me.

I’ll concede that the surest, safest way big stock market gains is dividend growth. Over time, stock prices are literally pulled higher by their payouts. Their dividends act as magnets that pull their shares higher and make their shareholders rich.

The Aristocrats have delivered plenty of wealth. Heck, to be admitted to the club they must have a track record of 25 annual dividend hikes in a row. At minimum.

Which is fantastic past performance. Problem is, the stock market looks ahead.

Many of these stocks are slowing down. Some—such as Johnson & Johnson (JNJ) and Coca-Cola (KO)—have elevated payout ratios of anywhere between 60% to 90%.… Read more

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How to Make a Million Dollars Last Forever

I saw this headline float across my Bloomberg Terminal late last week…

There Are More 401(k) and IRA Millionaires Than Ever

(Disclosure and digression: My “Terminal” is Bloomberg.com on my phone. I can thank my long wait at the DMV for my California REAL ID for this story.)

Fidelity Investments—apparently happy to share its customer’s financial info anonymously—says it has more than 750,000 seven-figure 401(k) and IRA accounts.

A chunk of money is great, especially when we can leave it untouched and let it grow. That was no doubt the “secret” of 99%+ of these retirement millionaires. They socked away money for decades and rode the market higher.… Read more

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54 Dividend Raisers Yielding Up to 16.1%

Dividends are back. And here are 54 secure payouts that are due for a raise between now and March.

The S&P yields a lousy 1.6% as I write. It’s sad to imagine a hefty million bucks in stocks could toss off a mere $16,000 in annual income. So, we income investors need a better play.

And that, my friend, is where these rising dividends come in. They are a “double threat” because we have two ways to win:

  1. The current yield, which (in many cases) will clear the 1.6% I mentioned. Plus,
  2. The price appreciation that comes along with the dividend increase.

… Read more

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