The Surefire Path to Sweet 23% Returns in 2023

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The Surefire Path to Sweet 23% Returns in 2023

Shall we turn 2023 into a bounce back year for our retirement portfolios?

How about we shoot for, say, 23% total returns?

The surest way to do it is by employing a technique I call the dividend magnet. It’s safe. Reliable. And works beautifully on the back side of a bear market.

A few weeks back I gave a guest lecture for a finance class at California State University, Sacramento. One of the students, to put it lightly, was excited to make money in stocks.

His hand went up from the back of the classroom. (Nobody sits in the front rows.… Read more

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The Surefire Path to Sweet 23% Returns in 2023

Shall we turn 2023 into a bounce back year for our retirement portfolios?

How about we shoot for, say, 23% total returns?

The surest way to do it is by employing a technique I call the dividend magnet. It’s safe. Reliable. And works beautifully on the back side of a bear market.

A few weeks back I gave a guest lecture for a finance class at California State University, Sacramento. One of the students, to put it lightly, was excited to make money in stocks.

His hand went up from the back of the classroom. (Nobody sits in the front rows.… Read more

Read More

The Fatal Flaw in the World’s Most Popular Dividend ETF

“Brett, what do you think of SCHD?”

As soon as I heard the “C” I figured we were talking Schwab US Dividend Equity ETF (SCHD). (Your income strategist can typically “name that dividend ticker” in two beats!)

“Eh,” I replied, visibly struggling to string together a positive response to my AAII presentation attendee.

“SCHD owns some good names. A few,” I shrugged.

“It will generally keep you out of trouble.”

Safety is all the rage in 2022. Pain has been felt on both ends of the stock-and-bond spectrum.

Stocks are down because the Federal Reserve is tightening. Bonds, meanwhile, are supposed to balance the ship when stocks sink.… Read more

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Weekly Market Summary: Riding Wave of Momentum Into Earnings Season

The S&P 500 snapped an eight-session winning streak on Tuesday, but U.S. stocks still have strong momentum heading into the first-quarter earnings season.

The index flirted with the 2,900 level this week, which is a price that we haven’t seen since last October. One big change since then is that average U.S. earnings showed 20%-plus year-over-year growth in the first three quarters of 2018 and now we’re staring at the first quarterly earnings decline in the S&P 500 in three years.

The quarterly reports we’ll see over the next few weeks will go a long way to determining if the recent momentum can continue.… Read more

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5 Dividend Growth Stocks Powered by Unstoppable Megatrends

Dividend Aristocrats – those companies that have improved their payouts annually for 50 years or more – have a mixed reputation. Sure, they’re great for dividend growth, but the likes of Coca-Cola (KO) and Procter & Gamble (PG) give off the impression that price returns can be difficult to come by.

But dividend growth and actual performance don’t have to be an either/or proposition. Today, I want to show you five dividend growth stocks that will prove just that.

Why would any investor think poorly of the height of dividend nobility? After all, the ability to crank out more cash every year without interruption for half a century is a testament to not just a company’s market-share dominance and fiscal responsibility, but also the agility to survive and remain relevant across decades of market and economic shudders.…
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2 “Dead Money” Dividend Aristocrats to Avoid (and 2 to Buy Instead)

Wall Street’s supposedly elite group of stocks that have increased their annual payouts every year for at least a quarter-century – the “Dividend Aristocrats” – are peddled by advisers and pundits alike as supreme plays for income portfolios. And sure, a select few of them are. We’ll discuss two later today.

But a whole lot more of them are simply “dead money.”

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL), which invests in the whole lot of dividend royalty, yields 1.9% as I write this. Even a million dollars parked in this fund is generating less than $20,000 in investment income annually.…
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