This Top Financial Dividend Stock Puts Big Banks To Shame

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I visited Florida a few months back, and witnessed a rather hilarious scene — a gaggle of teenagers, stamping out of the water as they shrieked about sharks in the water.

It was hilarious, of course, because there weren’t any sharks. What had terrified them was actually just a curious manatee.

It’s easy to understand why those kids freaked out. Sharks are terrifying to most people. The group spotted a dark shape in the surf and instantly panicked rather than take their chances.

But guess what: Swimmers very rarely encounter sharks. In a typical year, there are only about 10 humans killed by sharks… and about 100 run-ins with sharks in total.… Read more

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What if I told you that, in a market this expensive, there are nine dividend stocks with price-to-earnings (P/E) ratios under nine?

And that this low P/E ratio paid 6.9% per year in dividends?!

If I didn’t research and write it, I wouldn’t believe it myself. But in a minute I will share the details on this 9-pack, which yields 4.2% to 19.2%.

We’re unlikely to see these hidden gems touted on mainstream financial websites. With the S&P 500 in the stratosphere, these ground-level bargains are being overlooked. But we contrarians see these dirt-cheap dividend stocks that:

  1. Boast P/E ratios that average just 8.5.

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Goldman Sachs says the Fed will start cutting its bond purchases next month—and that sets up some of our favorite dividend-payers for a quick 61% profit surge. (I’ll reveal the tickers we need to reap this “taper bonanza” in a moment.)

Wait. Why are we taking Goldman’s word here?

Because “Government Sachs” has the deepest DC connections of any bank: former Treasury Secretaries Henry Paulson and Steven Mnuchin are Goldman grads, among many other government bigwigs. When it comes to what’s happening at the Fed, I’d take Goldman’s opinion over that of Jay Powell himself!

A Boon for Dividend Investors

To get at how we’ll flip the taper into big dividends, let’s connect it to a figure we all watch closely: the yield on the 10-year Treasury note.… Read more

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Don’t let anyone tell you otherwise: financial stocks are still a hotbed of dividend (and share-price!) growth for contrarian income-seekers like us.

I know what you’re going to say next: “Brett, everyone says finance stocks are overbought.”

I get it, and that sounds logical … on the surface. 

It is true that when the calendar flipped to January, finance stocks surged, more than doubling the price gains of the S&P 500, going by the performance of the benchmark Financial Select Sector SPDR ETF (XLF):

Finance Stocks on a Tear …

But here’s what most folks have missed: even with that gain, finance stocks are only 20% above where they peaked prior to the last financial crisis 14 years ago.Read more

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What the heck would a jump in inflation mean for our dividends? I’m getting that question from readers a lot these days, so today we’re going to take a closer look.

Then we’ll dive into three sectors—and three dividend payers (including one yielding an eye-popping 10%)—you’ll want to put on your radar now.

All three of these stocks boast high yields and/or strong dividend growth, plus big upside potential. Taken together, I expect their total returns to easily outrun any rise in inflation—and interest rates—we’ll likely see.

Money Printer Revs Up

The argument that we’re heading for a jump in inflation is pretty clear—a few days back, we saw the consumer price index (CPI), the go-to measure of inflation, pop 2.6% in March from a year ago, way more than expected.… Read more

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If we learned anything from 2020, it was the value of a few extra rolls of toilet paper. A close second? The reminder about the value of a reliable dividend.

This lesson has been taught over and over. The dot-com bubble. The Great Recession. The “COVID crash.” And sure enough, first-level investors don’t learn a thing—they chase one fat yield after another into the ground.

We next-level income investors know better. It’s important to consider the business engine under the hood. When we find cash flow machines like the eight dividend payers we’re about to discuss, we’re talking about decades of payments.… Read more

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There are dozens of huge yields out there that no one ever talks about. I’m talking about payouts 6-times (or bigger) than the pathetic 1.5% dividend the typical blue-chip stock pays.

Swapping Dividend Yield for Shareholder Yield 

These big “hidden yields” really are hiding in plain sight. The key to finding them is to set aside dividend yield for a moment and focus on shareholder yield.

Shareholder yield is a simple measure that goes beyond dividends to show you the big-picture view of what you’re pulling in from a stock—including another way companies pay us that doesn’t get nearly enough press (or at least nearly enough positive press!).… Read more

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In normal times, we contrarians are stuck combing the market’s backwaters—REITs, closed-end funds (CEFs) and the like—in our hunt for outsized dividends.

But, of course, these are not normal times.

This crisis has flipped the script. Now we can get the same big payouts but with much less work. In fact, we can get them from the same stocks you’ll find in any American’s portfolio! This is a once-in-a-generation opportunity, and it can’t last.

Fishing Close to Shore

The last time I saw a situation like this was in March 2009, days before the S&P 500 bottomed in the financial crisis.… Read more

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If your mattress is a bit heavy on cash these days, you’re probably grinding your teeth every day as the markets tick higher. Should you be in the market? Shouldn’t the market pull back eventually?

Here’s a solution that’ll get your “buy and hope” friends out of your face: buy some dividend machines that’ll pay you while the markets levitate and hold up just fine if we do see the dip we’re overdue for.

I’m talking specifically about three mighty “pullback-proof” dividends (yields up to 7.5%) perfect for the “cliff-edge” market we’re seeing now. More on those in a moment.… Read more

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My best advice for you today is this: ignore the breathless trade-war panicking and focus on one thing: cash.

Because the truth is, US companies—like the 3 stout dividend growers we’ll dive into below—are swimming in it. So much so, in fact, that they don’t know what to do with it all … so they’re sending it right back out the door to us!

A Colossal Cash Stash

But don’t take my word for it; ask the folks at UBS, who just said that US companies are sitting on nearly $2.5 trillion in cash. And that’s just what they’re holding inside America’s borders.…
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