Here’s a “DIY” Plan for 6.1% Dividends, Yearly 11% Returns

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If you’re on the lookout for an expert to help you build your nest egg—and bulk up your dividend stream to, say, a 6%+ yield—you have two main choices: a professional wealth manager or an investment advisory service (or a newsletter, as they’re more commonly known).

Which is for you? Let’s break down both options. Then we’ll dive into the kind of three-fund portfolio a newsletter might tip you off to, with a healthy 6.1% income stream and a history of double-digit yearly returns, too.

Wealth Managers Charge More, But They’re a Help in a Crisis

With active wealth management, the main concern most people have is fees.… Read more

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Investors in high-yield real estate investment trusts (REITs) are still living in 2020, and we can tap that for 7% dividends and price upside in the coming weeks.

Let’s start where just about every investment story begins these days: the spring 2020 crash. One thing that stood out during that chaotic time was the relative ease with which workers made the shift to working from home. That gave rise to fears that companies would cut back on office space, an obvious negative for REITs that own office towers.

On the retail side, mall REITs started chasing rent checks from store owners, who were dealing with both COVID restrictions and the accelerated shift to e-commerce.… Read more

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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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Let’s relegate 2020 to the trash heap (where it belongs!) and look to the new year that dawns tomorrow. I’ve got three predictions I’m going to lay out for you now, and three high-yield closed-end funds (CEFs) with dividends up to 8% that are nicely positioned to ride them to strong gains in the next 12 months and beyond.

Prediction No. 1: Home Sales Will Surge—and So Will This 8% Payer

One of the biggest financial stories of 2020 was the strong real estate market. In November, US home prices jumped 12.7%, and Zillow believes 2021 will be “the hottest [year] in recent memory.”… Read more

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My indicators are pointing to one thing right now: higher stock prices, with new all-time highs next year. So this is a great time to lock in some fresh 8%+ payouts—before their prices race away from us!

But wait a minute. The economy stinks and our political process seems more dysfunctional than ever. So why would stocks climb from here?

Money Printer Goes Brrrrr…

The answer lies with Fed Chair Jay Powell’s printing press monetary policy. Since March, he’s been flooding the economy with liquidity. Other central banks around the world have been generous, too.

Powell Goes All In

We both know that printing buckets of money is a recipe for higher inflation.… Read more

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“Brett, I didn’t sell (insert dividend stock here) in March. Should I hold my nose and sell now?”

If you sat on your hands during the March drop and subsequent bounce, you’re not alone. Many of your fellow income investors are still holding on to positions that they know they should probably sell, but haven’t yet. (I know this because I’ve heard this question from a number of you!)

Well, here’s the question I would ask you about the position:

“Is the business going to rebound to pre-pandemic levels any time soon?”

If the answer is “no” then why would you not sell the stock?… Read more

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At my Contrarian Income Report service, we hunt down huge dividends on the regular. Right now, our portfolio is knocking out a 6.9% average payout from 16 real estate investment trusts (REITs), stocks and closed-end funds (CEFs).

We’ve grabbed serious price gains, too: since launch in 2015, CIR has delivered a 12.5% annualized return. Not bad for a set of “boring” income plays!

Beyond Big Yields

Even though our CIR club is “high yields only,” I get that many folks look to stocks with low (or no) dividends for gains, too: names like Apple (AAPL), whose 1% yield won’t get it within a mile of Contrarian Income Report.… Read more

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Let’s be honest: our lives would be much easier if we could just buy the typical S&P 500 stock, get the 7%+ dividends we need for retirement, and call it a day. Trouble is, the popular kids only pay high yields when the market’s in flames!

Like Pfizer (PFE), which yields a ho-hum 3.8% now. But if you’d bought when stocks bottomed during the financial crisis, you’d be sitting on a cash machine: back then (March 2009), Pfizer’s payout shot up to an incredible 11%!

Pfizer’s (Very) Temporary 11% Yield

Of course, you needed quick reflexes and nerves of steel to lock in that yield before it vanished in the rebound.… Read more

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If you’ve been holding the Cohen & Steers Quality Income Realty Fund (RQI)—a fund I wrote about a lot in 2019—you’ve done very well indeed. RQI has dominated, with its market-price return surging 51.9%, including gains and dividends, since the start of 2019.

So today we’re going to take a closer look at this superstar fund to see what lies ahead, and whether it’s still worthy of your cash, even with its big 2019 gains.

If you’re not familiar with RQI, it owns real estate investment trusts (REITs), such as cell-tower owners Crown Castle International (CCI) and American Tower (AMT), warehouse landlord Prologis (PLD) and data-center REIT Equinix (EQIX).Read more

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How the heck do you fund your retirement today, with regular stocks yielding a pathetic 1.8%?

Today I’m going to show you exactly how—and we’re going to use my favorite tool, closed-end funds (CEFs) to do it. In fact, we’re going to zero in on a particular CEF that’s the poster child for how these high-yielding funds can deliver the retirement you want on a modest nest egg—far less than that million bucks many advisors say you need.

To start, this solid fund pays a steady 6.4% dividend now—nearly four times the payout you’d get from a “regular” stock. Even better for retirees, it pays you that dividend monthly, in line with your bills.… Read more

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