Drugs ‘n Diapers: 5 Dividends Up to 5.9%

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Drugs ‘n Diapers: 5 Dividends Up to 5.9%

Worried that the Federal Reserve is driving our economy off a cliff?

I’ve got two words for you:

Drugs ‘n diapers.

Actually, I forgot one. Dividends.

These companies are about as recession-resistant as they come. Let’s start with drugs because, well, it’s always a bull market on prescription spend in America:


Source: Centers for Medicare and Medicaid Services

While some of us are popping pills, others are changing diapers. (Or using them—we don’t judge!)

Without naming names we can see that someone is making consistent deposits. The trajectory of diaper spend is a one-way trade, too:


Data source: Statista Market Insights

Let’s start on the changing table with a 2.5% payer and work our way up.… Read more

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Drugs ‘n Diapers: 5 Dividends Up to 5.9%

Worried that the Federal Reserve is driving our economy off a cliff?

I’ve got two words for you:

Drugs ‘n diapers.

Actually, I forgot one. Dividends.

These companies are about as recession-resistant as they come. Let’s start with drugs because, well, it’s always a bull market on prescription spend in America:


Source: Centers for Medicare and Medicaid Services

While some of us are popping pills, others are changing diapers. (Or using them—we don’t judge!)

Without naming names we can see that someone is making consistent deposits. The trajectory of diaper spend is a one-way trade, too:


Data source: Statista Market Insights

Let’s start on the changing table with a 2.5% payer and work our way up.… Read more

Read More

3 Sleepy Yielders to Soothe Your Bear-Market Boo-Boos

Let’s not be idiots chasing this bear market rally. OK?

Safe dividend stocks, fine. That’s what we’re going to talk about today. A trio of stability and sanity that doesn’t care if we see a September swoon or October keel over.

Yes, in bear markets like these we sell the rips. But we still buy the dips—we just make sure we do it smartly. And keep it low beta.

Duke Energy (DUK), for example, has a 5-year beta of 0.34. This means it moves only 34% as fast as the market.

In other words, on days when the S&P 500 is down 3%, this stock should decline a mere 1.5% or so.… Read more

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How My “Dividend Magnet” Strategy Helps You Dodge Payout Cuts

Most investors ignore the “magnetic” connection between dividends and share prices. It’s causing them to miss out on huge gains—and setting them up for big losses, too.

Here’s what I mean: in my earlier article in our ongoing series on my “Dividend Magnet” approach to investing, I gave you example after example of how a rising dividend almost inevitably drags a company’s share price up with it.

This is one of the main reasons why we demand a dividend that’s not only growing but accelerating in my Hidden Yields dividend-growth service.

It’s clear as a bell in the chart of Texas Instruments (TXN), below, one of the examples we discussed in our previous article.… Read more

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Boost Your Portfolio’s Yield by 400% Overnight

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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5 “Cash Cow” Dividend Aristocrats Paying Up to 6%

S&P 500 Dividend Aristocrats are great if you’ve already owned them for many years or decades. These stocks have raised their payouts for 25 straight years or more. Since share prices rise as their underlying dividends rise, these stocks have showered investors with 500% to 1,000% returns or better.

BUT – if you’re looking for yield today, “Club Aristocrat” is a tough place to find new income. On average, these stocks pay 2.2%. This means you can put a million dollars into them and collect only $22,000 per year – yikes.

Instead let’s consider the High Yield Dividend Aristocrats.…
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These Safe Monthly Payers Yield 6% to 8% with 60% Upside

If you feel trapped “grinding out” dividend income with popular 2% and 3% stocks and funds, here’s the three-letter acronym that will fund your retirement:

C-E-F

For whatever reason, closed-end funds don’t have nearly the following – or analyst paperazzi – that dividend-paying stocks boast. This “secret” is one of the last great efficiencies in an otherwise tough-to-beat market.

And we contrarian income hounds will gladly take this edge…

After all, it doesn’t make much sense that we can trade in our “dumb” stocks, ETFs and mutual funds for superior tickers that:

  • Yield 6%, 7%, 8% or more,
  • Pay their investors every month,
  • Often trade at a discount to the assets they each own, and
  • Are managed for free (I’ll explain more later) by a top-notch investment manager.

…
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These 5 Dividend Aristocrats Pay Up to 5.6%

The biggest complaints about the Dividend Aristocrats tend to come from new money. That’s because many of them, while generously raising their payouts year after year, offer skinflint yields that average 2.35% – almost right on par with the 10-year T-note.

You can find a little more relief from a similar club: The High Yield Dividend Aristocrats. This is a group of roughly 110 S&P Composite 1500 stocks that has paid and increased dividends for at least 20 consecutive years. It’s slightly less exclusive than the S&P 500 Aristocrats, and doesn’t actually yield much differently on average, but the larger selection includes several higher-yield growers that I want to highlight today.…
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5 Dicey Dividends to “Trade In” for Secure 5% Yields

Don’t take any dividends for granted today. Business disruption is accelerating as entire industries are being eaten alive.

Uber and Lyft? Killed cabs.

Amazon (AMZN)? It’s crushing retail, and starving their REIT landlords right before our very eyes.

And soon, these disruptors might team up to offer more same day deliveries – and make more rivals obsolete!

These types of disturbances have added a new layer to contrarian investing. In years past, it was as simple as buying stocks when they were out-of-favor and holding them until they became back in vogue. The “Dogs of the Dow” strategy, for example, usually beat the market by banking the highest blue chip dividend yields – a sign that the tide was ready to turn back in the dogs favor.…
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