2 Deadly Dividends to Sell “on the Rip” (and 2 Proven Payouts to Buy Now)

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2 Deadly Dividends to Sell “on the Rip” (and 2 Proven Payouts to Buy Now)

Look, we’ve all loved watching our dividend payers rocket to the moon these past few weeks. Best part is, most of the market has been onboard: 

Everyone Wins in This “Close Your Eyes and Throw a Dart” Market

Here we can see the jump in the S&P 500 as a whole (in purple) versus its return on an equal-weight basis (in orange). Sure, there’s a bit of a gap, but safe to say this has been an across-the-board surge.

We can (in a backhanded way!) thank Jay Powell—just as he hinted that high Treasury yields were doing the Fed’s work for it, the bond market (figuratively) flipped him off … and Treasury yields plunged from 5% to around 4.6% now.… Read more

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Did You Miss the Rally? 5 Still-Cheap Dividends Up to 12.3%

Mr. and Ms. Market are manic. Always have been, always will be. My fellow contrarian, they reminded us of this fact yet again.

Fortunately we were zigging while the broader crowd was zagging.

The herd’s “FOMO panic” last week pushed many of our stocks higher. Vanilla investors covered their ill-timed short positions and scrambled to buy bargains. Like the dividend deals we bought in October!

Did you miss out? Have cash suddenly burning a hole in your pocket? If so, no worries, a few select dividend deals remain.

I’m talking about yields up to 12.3% and discounts up to—get this—46%.… Read more

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Why 2024 Will Be a Terrific Year for Dividends (and 3 Ways to Play It)

2024 is setting up to be a great year for us contrarian dividend investors—but to take full advantage, we need to buy now—while fear is still in the air.

Because that terror is totally unjustified. 

Here’s how I see the current state of play: Fed rate hikes are toast, and a Santa Claus Rally is on tap. In fact, the more Jay Powell tries to persuade us he’s going to keep bringing the hurt (as he did again last week), the hollower it rings.

Look, inflation is on the wane, and the last thing Jay wants is a repeat of the March banking mess.… Read more

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5 Easy Steps to Retire Early on $500K

$500K can be enough money to retire on. Even as early as age 50!

The trick is to convert the pile of cash into cash flow that can pay the bills. I’m talking about $35,000 to $40,000 per year or more in dividend income on that nest egg, thanks to 7% and 8% yields.

These are passive payouts that show up every quarter or, better yet, every month. Meanwhile, we keep that $500K nest egg intact. Or, better yet, grind that principal higher steadily and safely.

Got more in your retirement account? Cool—more monthly dividend income for you!

We’ll talk specific stocks, funds and yields in a moment.… Read more

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How to Retire Early on $500K

$500K can be enough money to retire on. Even as early as age 50!

The trick is to convert the pile of cash into cash flow that can pay the bills. I’m talking about $35,000 to $40,000 per year or more in dividend income on that nest egg, thanks to 7% and 8% yields.

These are passive payouts that show up every quarter or, better yet, every month. Meanwhile, we keep that $500K nest egg intact. Or, better yet, grind that principal higher steadily and safely.

Got more in your retirement account? Cool—more monthly dividend income for you!

We’ll talk specific stocks, funds and yields in a moment.… Read more

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This Will Be the Most Profitable Trend of 2022 (and We’ll Ride it to 7%+ Dividends)

Here’s my best advice as 2022 dawns: ignore the media’s constant bleating about inflation and supply-chain issues—these two boogeymen are nowhere near the threats everyone thinks they are!

In fact, terror-ridden headlines about either mark an opportunity for us contrarian income-seekers. So let’s go ahead and tap these investor fears for dividends yielding up to 10%, plus market-crushing returns as the crowd (inevitably!) comes around to our view.

Hints of a Supply-Chain Revival

More data will come in over the next few weeks to make things clearer, but so far there is one strong hint that the business press’s doomsday scenario—surging inflation, a stock-market correction and tighter corporate profits—just isn’t on.… Read more

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These 3 Dividends are Growing by 28% Per Year, Every Year

If you’re not yet as filthy rich as you hoped you’d be by now, don’t worry—we still have plenty of time to get you there.

And I’m not talking about investing your “growth capital” into risky fly-by-night names in hopes of buying high and selling higher. We can scale our money more securely—and just as spectacularly—by purchasing sound dividend payers that happen to be growing their payouts rapidly. Here’s why.

There are three—and only three—ways a company’s stock can pay us:

  1. A cash dividend.
  2. A dividend hike.
  3. By repurchasing its own shares.

Everyone loves the dividend, but investors usually don’t give enough love to the dividend hike.… Read more

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Avoid Dividend Cuts. Grab 1,600% Upside (2 Easy Steps)

These days, I’m hearing from a lot of folks who are pretty nervous, bracing for yet another round of dividend cuts to hit them out of the blue.

It’s understandable. Recently, we’ve seen plenty of dividend “sacred cows,” like Wells Fargo (WFC), mall landlord Simon Property Group (SPG), and senior-care operators Welltower (WELL) and Ventas (VTR) cut or eliminate their payouts.

In the second-quarter of 2020, 244 firms increased their dividends, according to Howard Silverblatt of S&P Dow Jones Indices. That sounds good until we see that 639 companies decreased their payouts. In other words, dividend investors were two-and-a-half times as likely to receive a pay cut as they were a raise.… Read more

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2 Smart Lockdown Buys for 150% Dividend Growth, Upside

We’re almost three months into this crisis and three things are crystal clear:

  1. Plenty of “household-name” dividend-payers are in big trouble—and not just the ones you see in the news. When the payout cuts come, the resulting share-price drops will crush the unwary.
  2. Way too many people are clinging to blue chips yielding 2% or 3%. But is such a small payout worth it when you can lose that much in a single trading session?
  3. We can’t trust any stated yield until we verify a company’s cash flow.

This may sound a bit alarmist, but imagine if I told you in January that by mid-May, Ford (F), General Motors (GM), Walt Disney (DIS) and Las Vegas Sands (LVS) would have all either eliminated or, in Disney’s case, delayed their dividends.… Read more

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How to Buy Microsoft for 8.6% Off (with a 6% dividend!)

There’s a dangerous myth going around: that stocks are in a bubble, and if you buy now, you’ll lose money.

This myth is dangerous because it is discouraging people from putting money in one of the most powerful wealth-generating machines on earth. And income-seekers (retirees, in particular) who know how to navigate this market can not only get massive profits but also strong cash flow, like the 6% dividends, paid monthly, on a fund I’ll introduce you to shortly. This fund is worth your while because it’s a play on US stocks at a time when stocks are strong and getting stronger, and because it’ll get you those stocks at an 8.6%… Read more

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