Why I’m Choosing a Measly 0.66% Dividend Over a Well-Known 6% Payer

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Why I’m Choosing a Measly 0.66% Dividend Over a Well-Known 6% Payer

If you’re like me, when you see an outsized dividend yield, you stop and immediately do the mental math. How much would we get back in payouts from, say, a 9.3% payer if we were to invest $10,000? Or $20,000? Or $100,000?

But savvy contrarians we are, we know to push back on this initial reaction and look deeper.

That’s because of something I know pretty much goes unsaid among contrarian income investors like us: Those big yields can be (and usually are) a danger sign. Truth is, a rising dividend is only one possible reason for a high payout.

And in fact, it’s the least likely one.… Read more

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Let’s Start Trump 2.0 By Dumping These 6 Losers

We are now officially into Trump 2.0, and here’s the first thing I can tell you:

This new administration will hurt the returns of folks who simply buy an index fund like the SPDR S&P 500 ETF Trust (SPY) and call it a day.

What we’re now embarking on is a true stock picker’s market—a time when prudent moves into, and out of, individual dividend payers will be key.

That puts holders of SPY, which has to represent the current makeup of the S&P 500 index, in a tough spot. Since it has no manager who can buy and sell as markets shift, SPY holders are locked in as losing stocks cancel out some or all of the ETF’s winners.… Read more

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32 Upcoming Dividend Hikes You Can’t Miss

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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5 Dividend Doublers That Run Laps Around the Market

If you want to figure out how long it will take to double your money in an investment, you use the “Rule of 72.” But income investors can put this rule to work, too, to figure out just how quickly their dividends will pile up.

I’ll show you how – and I’ll show you five dividend stocks that are on pace to double their dividends in just seven years.

The Rule of 72 is just a simple equation you can use to project the amount of time it would take to double your investment money. The equation:

72 / compound annual interest rate = # of years to double your investment.… Read more

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3 Selloff Bargains for 100% Dividend Growth and 40% Upside

If there’s ever been a perfect time to show you one of my best strategies for getting rich in the market, it’s now.

What can you expect? A simple way to grab an income stream that doubles in short order—and hands you double-digit share price growth, too!

When I say “simple,” I mean it. You’ll barely have to lift a finger. And it works best in selloffs like we’re seeing now.

Along the way, we’ll uncover 3 stocks (including one of the world’s leading semiconductor names) that when combined with this strategy hand us “hidden” dividend yields all the way up to 8.9%!…
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9 Dividends Due for a Raise in March

Dividend growth is the key to retirement because it fends off the effects of inflation. Even amid low inflation of 2% to 3% a year, a stagnant dividend will actually lose 2% to 3% of purchasing power a year. The only way to actually grow your income over time, then, is to invest in companies whose management makes rising dividends a priority.

That’s one reason you should buy stocks before their dividend increases. And we’ll review nine upcoming payout raises in a moment.

But there’s a second reason that’s coming to the fore of late: interest rates.

While the Federal Reserve has tried to put the spurs to interest rates with five bumps to the Fed funds rate since December 2015, bond yields haven’t cooperated much.…
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These 4 Big Dividends Will Benefit Big Time From the Tax Plan

Congressional Republicans are closer than ever to passing wide changes to America’s tax code. From 10,000 feet, they largely feature:

  • Varying levels of tax cuts for individuals,
  • A massive tax cut for businesses, and they
  • Weaken (or negate) the estate tax.

There’s debate regarding how much individuals will actually benefit, but there’s little debate that certain public companies will gain. Both the Senate and the House are looking to cut the corporate tax rate from 35% to 20%. Plus, companies will be allowed to pay a low, one-time repatriation tax on profits already sheltered overseas.

The idea is that U.S. corporations will use this windfall to hire more people, and many likely will … but that’s not the only place that money is going.…
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5 Stocks to Buy for Double-Digit Growth and 20%+ Dividend Hikes

What do Exxon Mobil (XOM), Colgate-Palmolive (CL) and Walmart (WMT) have in common?

Their dividend growth is running on fumes.

Sure, they’re all still members of the Dividend Aristocrats – that social club of companies that have raised dividends for at least 25 consecutive years. But Exxon, Colgate and Walmart all have kept their streaks of dividend increases alive within the past year by hiking their payouts by less than 3% apiece.

Sad!

If you’re looking for serious dividend potential, I can introduce you five income gushers that are doling out annual payout increases of 20% or more. But first, let’s quantify how why dividend growth is the single most important factor for you portfolio.…
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