My 2 Favorite Dividend Stocks for Q3 Have 20% Upside

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My six-year-old hooper was having an outstanding YMCA practice. She was leading the drills, encouraging her teammates and almost dribbling between her legs. So close.

And then, the very next minute, she was throwing a fit in the corner. Her tantrum would last the remainder of practice. She missed the end of the time-honored “kids versus coaches” game which the kids (as always) dominated.

One of the coaches (her father, and your income strategist) was not thrilled with her pouting but also not totally surprised. Parenting a soon-to-be-first grader is a rollercoaster. Best to enjoy the good moments and get through (or mentally block out!)… Read more

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As contrarian investors, we have no desire to buy the stock market while it’s hot. We wait for it to cool off. And cooling off it is.

Three weeks ago, I warned that NVIDIA Corp (NVDA) was pricey. On cue, the stock sank 10%!

It’s since bounced, but I’m not sure the bottom is in for this bubbly darling. More tears are likely.

So what to buy instead? I’m intrigued by stocks that have the ability to soar while the broader market sinks. That’s a strategy we employed previously with semiconductor maker Texas Instruments (TXN).

Below is a chart of TXN’s performance over the last decade.… Read more

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These days, everyone is looking for safety—and that’s got some folks pondering some pretty, er, unusual strategies that seem secure but are in fact anything but.

One such strategy is known as dividend capture, which sounds like a way to bag a company’s quarterly cash dividend without taking the risk of owning the shares. I don’t like the name because it sounds like something we dividend investors should be interested in. I don’t like the approach itself because it doesn’t really work.

The theory seems innocent enough:

  1. Find a stock that is about to pay a dividend,
  2. Buy it before it’s “ex-dividend date,”
  3. Pocket the payout, and
  4. Sell the shares after.

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The broader market, as defined by the S&P 500, has rallied like crazy. But don’t worry, you haven’t “missed out” on anything. The rally has been carried by large, and largely non-dividend paying stocks!

Most income plays are just now getting up off the mat. We’ll discuss one of my favorites today.

Energy, for example, is in the middle of a “crash-and-rally” pattern. The ultimate cure for low energy prices is (or perhaps, was) low energy prices. Reason being, low prices force producers to slash output like crazy to save money, which in turn reduces supply which in turn boosts prices.… Read more

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While most income investors are reaching for big yields right now, a small group of “hidden yield” stocks are quietly handing smart investors growing income streams plus annual returns of 12%, 27.1% and even 54% or more per year.

So if you want to double your money every few years – and double your income as well – then you need to focus on the seven stocks I’m about to share.

(All seven are about to hike their dividends. Yet the “forward-looking market” hasn’t yet priced in these payout raises. This is free money the market is giving us, thanks to the most “underrated” shareholder return vehicle.)

The Most Lucrative Way Shareholders Get Paid

There are three – and only three – ways a company’s stock can pay us:

  1. A cash dividend.

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Warren Buffett doesn’t just beat the market – he makes a mockery of it. Since Buffett took control of Berkshire Hathaway back in the middle of 1965, the conglomerate has more than doubled the average annual gain of the S&P 500.

But here’s something you won’t hear anywhere else – Buffett doesn’t love all of his stocks equally. In fact, there are three dividend dogs that I bet he’d sell today if he could get away with it.

Let’s look at six of Buffett’s current income plays to separate his three buys from his three sells.

SELL – Verizon Communications (VZ)
Dividend Yield: 5%

Verizon Communications (VZ) is technically in the Buffett boat, but it’s not exactly a high-conviction pick anymore.…
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