4 Deeply Discounted Yields of 4%-21%: Treats or Traps?

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Over longer time periods, dividend stock prices tend to follow their dividends—for better or for worse.

Sometimes, the stock price gets there first. This can be a race to the sky, in the case of a rising dividend. Or a race to the basement, when a payout is about to be cut.

For example, we had been concerned about Kraft Heinz’s (KHC) dividend for years. Income investors “sniffed out” the inevitable payout cut before the lower quarterly dish became official:

Kraft’s Stock Price Tipped Off Its Dividend Cut

Investors waste no time ditching a troubled dividend when a firm has hacked its payout in the past.… Read more

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“Buy and hope” investing has never been more hopeless.

With bond yields doing a “moonshot” to 1.8%, they are now looking down at the S&P 500’s sad 1.3% yield. Still, let’s admit—these aren’t enough for us to be able to retire on dividends alone.

Plus, we’re seeing serious volatility as the Federal Reserve hits the Pause button on its money printer. Basic income investors are losing these annual yields in one trading session!

Fortunately, there are serious dividends beneath the surface of the market. Today we’ll highlight five stocks that pay more than 7%. This is a big upgrade.

Back to the “spike” in bond yields.… Read more

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It’s a no-yield world we dividend investors are living in. But believe it or not, there are some payers with serious yields that get zero mainstream attention. We’ll discuss five in a moment.

I’m talking about dividends between 9.5% and 13.6%! Yes, you read that right—one of these stocks dished 13.6% back to its happy income investors over the past twelve months.

Are these yields safe? That is always the question. The backdrop is certainly better than last year. One year ago, the emergence of the COVID-19 pandemic in 2020 triggered a slew of dividend cuts and suspensions as companies scrambled to preserve cash and remain solvent through the uncertain future.… Read more

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