Analysts Hate These Massive Dividends Up to 18%. Should We?

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Analysts Hate These Massive Dividends Up to 18%. Should We?

We contrarians profit on analyst dislike.

Note that I did not say like. Dislike is where the dividend money is at!

Analyst ratings are a wonderful buy signal. Vanilla investors purchase payers that are widely liked—and wonder why every downgrade dents their pocketbook.

We don’t care about popularity. Heck, we prefer stocks that are far from being in analyst good graces.

Give us the disgraces. And we’ll collect our dividends while we sit back and wait for the analyst upgrades to follow.

It’s not easy to find the “uncool kids” on Wall Street. The school of S&P 500 is a joke.… Read more

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3 Dividend Dogs About to Become Analyst Darlings in 2023

I love dividend stocks that analysts hate. For two reasons:

  1. By definition, they can’t be downgraded.
  2. In weak moments, they are candidates to be upgraded.

And since vanilla investors, for whatever reason, listen to analysts, upgrades can provide a nice “pop” in the stock price.

So give us the stocks that can only “fall out of the basement window”—yielding a fat 14.6% on average—that carry this ultimate contrarian indicator:

They’ve lost the typically rosy analyst community. Which means it’s time for us to find them.

Does Wall Street Say “Sell”? That’s a Big “Buy” Signal

Wall Street’s “pros” are an optimistic bunch.… Read more

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22 Dividend Stocks for $68,400 in Annual Income

If you’re as nervous about the 2022 financial scene as I am, we should take this holiday week to review 22 reliable dividends. I’m talking about generous payers that are prepared for any market, bull or bear.

In a market where liquidity is drying up fast, sign me up for safe dividends plus additional profits. The asset price “fuel” that our Federal Reserve has provided since March 2020 is disappearing. Fed Chairman Jay Powell is being forced by inflation numbers to reduce the massive cash the Fed has been providing the financial markets.

So, let’s talk about 22 stocks with sizable and stable dividends averaging 6.8% that can double, triple, maybe even quadruple your portfolio yield overnight.… Read more

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Taper Tantrum Dividend Stocks Yielding Up to 12.9%

When the taper tantrum finally hits, these five dividends—up to 12.9%—are likely to directly benefit.

Right now, their profits are being artificially suppressed by the Fed. Once this constraint is lifted, their bottom lines are going to boom.

The Fed is currently buying $80 billion in government bonds every month. Yes, Chairman Jay Powell wants to kick this addiction, but thus far he can only bring himself to “think about it.” Eventually, he will try to cut back on this bad habit. This opens the door for us laypeople to profit and bank some big payouts.

Treasury yields are based on supply and demand.… Read more

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5 Cash Cow Stocks Yielding Up to 10.8%

Sometimes investors forget that dividends are funded by actual cash flows.

Consider General Electric (GE), whose outsized yield tempted investors to mistakenly buy shares in this “blue chip” as disaster was unfolding. The stock losses started well before the actual dividend cut and continued on from there:

(Accounting) Imagination at Work

This focus on yield rather than cash happens too often. It’s what prompted me to warn readers about the sky-high yield of Frontier Communications (FTR) a year ahead of its 2017 cut:

A Broken Telecom (and Broken Dividend)

The “not enough cash” problem also prompted me to sound the alarm on L Brands (LB) several times ahead of its 50% dividend cut in late 2018.… Read more

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