The Safe, Easy Way That Billionaires Turn 2% Yields to 8%

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The Contrary Investing Report > NYSE:JNJ

As broke investors worry more and more about a stock market crash, billionaires are quietly loading up on their favorite dividend paying stocks. Investing for growth and income, these “country clubbers” know how to 4X their yields without taking on any additional risk.

Who would you rather invest with? Obviously, the rich guy or gal versus the hopeful retiree sweating out every stock tick.

Wealthy people collect assets that, over time, help them accumulate more and more wealth. Average investors, meanwhile, clutch to their stocks like they are lottery tickets. They buy shares and “hope” that they go up every minute of every day.… Read more

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“Brett, give me some bond funds with big yields. And it’d be great if their prices never went down!”

My money manager friend was chasing the holy grail of retirement income. He wanted safe payouts from bonds to balance his clients’ stock exposure.

“How about the Artisan High Income Investor Fund (ARTFX)?” I replied. “It pays a steady 6% or so. And it never goes down.”

Same S&P Yearly Return, Less Heartburn

“The only problem is that it never goes up, either. And that’s prevented me from recommending it to my Contrarian Income Report subscribers.”

Our CIR portfolio holds eight bond funds today (versus ten stocks and stock funds).… Read more

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Mortgage payments. Car payments. Cell-phone bills. Power bills. Water bills. Credit card bills.

What do they all have in common?

Nobody likes them, of course. But more importantly, they all arrive relentlessly month after month.

That’s fine when you have a normal job that pays you every couple of weeks or every month. But that regular bill routine becomes considerably more daunting once you hit retirement, when much of your regular income is coming from your portfolio of dividend paying stocks … which pay out every quarter, not every month.

Investors in turn often build complicated dividend calendars that get knocked out of whack whenever they ever have to cut back on certain stocks.… Read more

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Growth or yield? Why choose when we can have both.

There are 32 dividend hikes on the way that are going to set up their investors for a big 12 months ahead. How? Simple–these payout raises are going to provide fuel to their attached share prices. The 10%+ raises (and there will be double-digit increases) in particular are going to position their shareholders for safe 10% to 12% returns in the year ahead regardless of what the broader stock market does.

Ever wonder why the yield on your favorite dividend aristocrat always looks low even though the firm is regularly raising that payout?… Read more

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The S&P 500 snapped an eight-session winning streak on Tuesday, but U.S. stocks still have strong momentum heading into the first-quarter earnings season.

The index flirted with the 2,900 level this week, which is a price that we haven’t seen since last October. One big change since then is that average U.S. earnings showed 20%-plus year-over-year growth in the first three quarters of 2018 and now we’re staring at the first quarterly earnings decline in the S&P 500 in three years.

The quarterly reports we’ll see over the next few weeks will go a long way to determining if the recent momentum can continue.… Read more

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What good is a 2% or 3% annual yield if you can lose it in a single trading session?

The Nasdaq and Russell 2000 are officially in bear markets, which means they’re down 20% from their peak. But bear markets don’t have to stop at 20%.

They can just keep on collapsing. And the weakest links can fall much, much farther than 20%.

In fact, they often do. Just take a look below at the 444 S&P 500 components that were part of the index during the 2007-09 selloff. Only a handful fell even close to the bear-market minimum.

Meanwhile, almost a quarter hemorrhaged 70% of their value or more!… Read more

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Ignore the doomsayers: 2019 is setting up to be a strong year for equities—and a great year for dividend investors like us.

I know this might surprise you, so let’s break it down. Further on I’ll give you 5 funds (with dividends up to 11.5%!) that are flashing buy signals you can’t afford to ignore.

So why am I so bullish on the year ahead?

Thanks to the record-breaking profit growth we’ve seen in 2018, along with continued steady gains in employment and wages, there’s little reason to believe next year will bring the big downturn everyone’s worrying about. Instead, the Fed’s prudent scaling back of interest-rate hikes should fuel more growth.… Read more

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The stock market is way up – and ironically, that’s terrible news for us dividend investors. Yields haven’t been this low in decades! The S&P 500 pays a measly 1.8% today. If you have a million-dollar portfolio, that’s a lousy $18,000 per year in income. Pathetic.

Most people invest their money in index funds like those that mimic the S&P 500. We can do better – four-times better, to be specific – and raise our dividend income by 400% simply by selling these mainstream plays and buying bigger payouts that are better values.

Specifically we’re going to discuss stocks, bonds and funds that pay 7.3% to 8% instead of the broader market’s lame 1.8%.… Read more

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If the virtues and importance of dividend growth weren’t etched into your brain already, let’s consider February’s example. (Then we’ll outline ten imminent hikes coming in April.)

About a month ago, shortly before the market reached full correction mode, I outlined the problem low-growth dividend stocks would have against rapidly rising Treasury rates – and why it’s vital that we monitor the dividend growth of current and prospective holdings.

Within a week, yields quickly leapt to nearly 3%, and currently sit close by at about 2.9%. On cue stocks crashed:

The lesson here is twofold.

For one, if interest rates continue to climb, life becomes more difficult for corporations across the board.…
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The desperate hunt for yield is getting way out of hand—and it’s setting up a terrific buying opportunity for you and me.

How out of hand?

Consider that some investors are so income starved they’re piling into sovereign bonds from Iraq—a country that’s still a war zone!

The latest issuance of five-year bonds by the Iraqi government was slated for $1 billion. But investors spied the 7% yield on offer here and crashed the doors, racking up nearly $7 billion in orders.

It’s sad, and totally unnecessary.

A Secure Portfolio With a Life-Changing 8% Yield

The worst thing is, in their scramble for income, the herd is charging right past yields that are even bigger—and far safer—here in the U.S.A., like the ones you get in my new “8% No-Withdrawal Retirement Portfolio.”

If you’ve been reading my column over the past two Mondays, you know I’ve been giving you a hands-on tour of this portfolio, which I’ve crafted to hand you $40,000 of income on a $500,000 nest egg.…
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