An Extra $44,000 in Dividend Income (Hidden in Plain Sight)

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It is challenging to find stocks that pay enough money to retire on. For example, even a 3.3% dividend—generous by today’s standards—isn’t enough to turn a $1,000,000 into an income stream that will last forever.

I’ll save you the math. It’s just $33,000 per year on a million dollars.

Fortunately, this same dividend yield is understated on most mainstream financial websites. In reality, this stock paid 7.7% over the past twelve months. Which means its millionaire investors actually earned $77,000 in dividend income.

Yes, you read that right. There was an extra $44,000 hidden in plain sight thanks to a “special” dividend payment.… Read more

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With stocks crowding all-time highs, we need to follow our contrarian instincts now more than ever.

That, of course, means going where everyone else isn’t.

And the best contrarian investment I can think of right now is municipal bonds, or bonds issued by state and local governments to pay for vital infrastructure.

Don’t click away! Because these “sleepy” bonds boast dividends so high that, simply by buying them, you could match, or even beat the stock market’s long-term historical return (around the 7% to 8% range) in dividends alone.

Better still, “munis” boast the highest stability on the market, so we’ll be “backstopped” by rock-steady prices while we collect our outsized dividends.… Read more

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The disaster that was 2020 is finally out of our hair, though there could be one silver lining if you followed a contrarian investing approach in 2020: serious gains in your stock portfolio.

But, of course, those gains come with a big consequence: Uncle Sam will be coming for his share on Tax Day in April. And to be honest, we don’t have much leeway to cut our 2020 tax bill at this point. But there is one canny move we can make to (legally, of course!) reduce our tax burden in April of next year: buy municipal bonds.

What Everyone Gets Wrong About Municipal Bonds

Sure, municipal bonds (issued by cities and states to fund local infrastructure) seem like a pretty boring option when there are corners of the stock market (I’m looking at you, tech) that jumped 40%+ last year.… Read more

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