2 Deadly Dividends to Sell “on the Rip” (and 2 Proven Payouts to Buy Now)

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2 Deadly Dividends to Sell “on the Rip” (and 2 Proven Payouts to Buy Now)

Look, we’ve all loved watching our dividend payers rocket to the moon these past few weeks. Best part is, most of the market has been onboard: 

Everyone Wins in This “Close Your Eyes and Throw a Dart” Market

Here we can see the jump in the S&P 500 as a whole (in purple) versus its return on an equal-weight basis (in orange). Sure, there’s a bit of a gap, but safe to say this has been an across-the-board surge.

We can (in a backhanded way!) thank Jay Powell—just as he hinted that high Treasury yields were doing the Fed’s work for it, the bond market (figuratively) flipped him off … and Treasury yields plunged from 5% to around 4.6% now.… Read more

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My #1 Dividend Strategy to Profit as Rates Surge (It’s Not Bonds)

The 10-year Treasury yield’s latest journey to the stars is setting up a terrific opportunity for us to “lock in” historically high dividend yields—and upside, too.

The time to make our move is now. Here’s why: the surging yield on the “long bond” has hit stocks—especially dividend stocks—hard. But this surge is completely unsustainable.

Look, over the last few weeks, I’ve been saying the 10-year would bump its head on the “4.3% ceiling” and retreat. The fact that it’s blown through that ceiling only means its coming fall will be that much harder—and our favorite dividend stocks will rip that much higher in response!… Read more

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This Fat Dividend Is Growing Fast (Name and Ticker Below)

There are plenty of stocks out there, right now, with payouts growing fast—heck, some of them give shareholders a “raise” every three months.

You won’t find these “Dividend Accelerators” among the big names of the Dow.

A number of them are real estate investment trusts (REITs)—“landlords” of everything from apartments to warehouses. And they’re not just dividend-growth machines; most throw off higher current yields than the typical S&P stock, too.

And I mean much higher: right now, the REIT benchmark Vanguard Real Estate ETF (VNQ) yields 4.5% as I write. The typical S&P 500 name? A sorry 1.5%.

You can thank the federal government for that: it gives REITs a pass on corporate taxes as long as they pay 90% of their income as dividends.… Read more

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This Unknown “Dividend Magnet” Is Growing Payouts 211%

There are plenty of stocks out there, right now, with payouts growing fast—heck, some of them give shareholders a “raise” every three months.

You won’t find these “Dividend Accelerators” among the big names of the Dow.

Many are real estate investment trusts (REITs)—“landlords” of everything from apartments to warehouses. And they’re not just dividend-growth machines; most throw off higher current yields than the typical S&P stock, too.

And I mean much higher: right now, the REIT benchmark Vanguard Real Estate ETF (VNQ) yields 4.1%. The typical S&P 500 name? A sorry 1.6%.

You can thank the Feds for that: they give REITs a pass on corporate taxes as long as they pay 90% of their income as dividends.… Read more

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Make High-Growth E-Commerce Stocks Pay You 6%

Your next Amazon.com box could be fueling a dividend—and stock price.

Talk about delivery-powered dividend growth! In the US, 3 billion e-commerce packages were delivered in 2020. And its not just Amazon (AMZN).

Brick-and-mortar retailers have finally realized that they must answer Amazon with convenient deliveries. Smart retailers such as Walmart (WMT) and Williams-Sonoma (WSM) have figured out that “omni-channel” (in-store and online) is the future.

They’re the types of companies that will survive the “great reset.”

E-commerce swallowed brick-and-mortar market share over the past decade, making up just 6.4% of retail sales in 2010, but a whopping 15.8% in 2019.… Read more

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REITs: The Last Cheap Dividends? Names to Buy, Sell in ’21

2020 is finally in the books, and many REITs (real estate investment trusts) remain in the bargain bin. Is it time to buy these generous dividend payers and bet on a 2021 rebound?

Savvy contrarians that we are, we’re focusing on REITs because they are the one part of the market that was left behind as everyone rushed back into stocks in the back half of 2020.

Normally, REITs more or less track the blue-chip index, but when COVID-19 crushed these landlords’ tenants, that changed in a big way: investors sold REITs—and they’re still on the mat.

REITs Fall Behind

That orange line is the price return of the benchmark Vanguard Real Estate ETF (VNQ), which yields 4% today—a massive payout in today’s zero-point-nothing interest-rate world.… Read more

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21 REIT Dividends I Love (and Hate!) for 2021

Can we income seekers safely get back into REITs (real estate investment trusts) next year?

With the yield on the S&P 500 about to drop to a sad 1.5% (thanks, Tesla (TSLA) addition), renewed REIT-hope sure would be nice! The landlord industry index Vanguard Real Estate ETF (VNQ) pays 3.5%. That’s a dividend oasis in this zero-point-nothing world.

Once upon a time, VNQ performed in-line or better than the blue-chip index. It was a pretty good deal, as you could double your dividend and keep up with the Joneses’ portfolio with less heartburn.

Then, April 2020 came along, tenants stopped paying rents, and REITs-at-large got crushed:

A Good REIT Run While It Lasted

Does the fork-in-the-road above represent a paradigm shift or relative value?… Read more

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These 3 “Perfect” REIT Dividends Are Still On Sale

The economy is a mess—and that’s presenting quite the opportunity for these landlords, and contrarians like us. Tenants are still paying, but these stocks are priced like a few are flaking.

That’s not the case. Plus, one firm is about to take advantage of a weak 2020 market to go shopping and secure future cash flows at a bargain.

Real estate investment trusts (REITs) are trading at 2020 discounts. Investors trashed these stocks swiftly and thoroughly when they realized April 1, 2020 rent payments were going to be a disaster. But we now have a few months of pandemic landlording in the books, and there’s evidence that some REITs are going to be all right after all.… Read more

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Are These 7 REITs Ticking Time Bombs or Treasure Chests?

Lockdowns have been tough on real estate investment trusts (REITs). When April 1 hit, the rent stopped getting paid across the world. That’s of course bad for landlords and, in turn, REITs and their investors.

Now it hasn’t been all bad since then. Sure, old school retail and shopping malls are done—but we knew that already.

Check this out—it’s the rent collected by the REIT sector for April, May and June. All of our newly completed “shutdown” and “re-opening” and “just kidding, we’re closing again” months. Would you believe that apartment landlords collected 97.5% of their typical rents in June?


(Source: Nareit)

Yes you read that right.… Read more

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5 Retail Dividends with an Amazon-Proof Story Paying Up to 10.4%

“Brett, I bought something for the girls. From Carter’s. Let me know when you get it.”

My mom thinks that postal delivery is a 50-50 proposition. She hedges her downside by purchasing 4X as many clothes as my young daughters actually need!

“Mom – thanks. Will do. And, you know, they’re probably good on dresses for now. They’ll be up another size in a few months.”

“Oh don’t you worry about that. I’ve got plenty of coupons,” she countered.

My folks live 2,562 miles from their granddaughters. And while long-distance grandparenting can be a challenge, the (increasingly online) experience provided by Carter’s (CRI) satisfies two of my mom’s favorite pastimes:

  1. Spoiling grandkids, and
  2. Shopping.

… Read more

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