Warning: These 66 “Dead Money” Dividends Could Crush Your Profits

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Be careful with conventional “wisdom”—especially when it comes to dividend investing. Some investors are so scared of a payout cut that they chase too-popular yields and watch their money grind sideways for years on end.

This safety trap is especially tempting in 2020, with dividend cuts happening left and right. We’ve had 639 publicly traded US companies reduce or eliminate their payouts in the second quarter alone, according to S&P Dow Jones Indices.

If you’ve been burned by a payout cut this year, the small consolation is you’re far from alone. Many folks were caught off guard when big names like Ford (F), Wells Fargo (WFC) and senior-care REIT Welltower (WELL) slashed or ceased their dividends.… Read more

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Today I’m going to show you the one market indicator you can use to grab gains as high as 70% in nine months (or less!), plus dividends growing double-digits, too.

It’s a measure of market panic you’ve probably heard about, but here’s the funny thing: everyone is looking at this indicator backwards.

Let me explain.

First, I’m talking about the CBOE S&P 500 Volatility Index, or VIX for short. You’ve probably heard of the VIX: dubbed the market’s “fear gauge,” it’s a measure of how volatile traders see stocks in the next 30 days.

In other words, when investors are twitchy, the VIX rises—and when they’re confident, it trends down.… Read more

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This bull market is ten years old and stocks at large are richly valued. No wonder the last few weeks have been scary for some, who haven’t seen a real bear market in a very long time. Should we take our cue from the recent pullback to sell some positions, hunker down in cash and “wait things out” for a bit?

Absolutely not. First, it’s very difficult (and really, impossible) to know when it’s time to “get back into stocks.” Hulbert Financial recently ran the numbers for Barron’s on the advisors it monitors. It focused on the best “peak market timers” – the gurus who correctly forecasted the bursting of the Internet bubble in March 2000 and the Great Recession in October 2007.… Read more

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If you want to clobber the stock market – and double your money every two or three years – then buying companies with accelerating dividends is the easiest and safest way to do it.

And I’ve got good news for you: there are nine blue chip payers likely to raise their dividends next month. So why not “front run” this good news and consider these shares now?

The benefit of dividend hikes? Getting a fatter income stream is an obvious reason, but it’s just the start. A rising payout acts like a lever on a company’s share price, prying it higher and higher with every single dividend hike.… 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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Today we’re going to talk about the single biggest risk you face in your golden years.

But don’t worry—I’ll also show you how to clobber that risk and set yourself up for an easy $40,000 in cash for every year of your retirement. More on that below.

Let’s address the nasty risk first—the very real chance you’ll outlive your nest egg. A sweeping study says you could be very wrong about the length of your retirement.

A Hidden Danger

Here’s what the numbers say: in 1992, the University of Michigan asked 26,000 Americans 50 years of age and older how long they thought they’d live.…
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Today we’re going to talk about the single biggest risk you face in your golden years.

But don’t worry—I’ll also show you how to clobber that risk and set yourself up for an easy $40,000 in cash for every year of your retirement. More on that below.

Let’s address the nasty risk first—the very real chance you’ll outlive your nest egg. A sweeping study says you could be very wrong about the length of your retirement.

A Hidden Danger

Here’s what the numbers say: in 1992, the University of Michigan asked 26,000 Americans 50 years of age and older how long they thought they’d live.…
Read more

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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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You may think $500,000 isn’t enough money to retire on.

It is. Because with two quick steps, you can transform any $500K “buy and hope” portfolio into a $3,279 monthly income stream:

  1. First, sell everything. Including the 2%, 3% and even 4% payers that simply don’t yield enough to really matter. Then,
  2. Buy my 8 favorite monthly dividend payers.

The result? $3,279.69 in monthly income every month (from an average 7.6% annual yield, paid every 30 days).

With upside on your initial $500,000 to boot!

Traditional dividend stocks simply can’t keep up, and I’ll show you why. Let’s take a 4-pack of popular names Procter & Gamble (PG), McDonald’s (MCD), Altria (MO), and General Mills (GIS) to illustrate how much they’ll pay investors the rest of the year.…
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