These “19th-Century” Dividends Will Roll in 2025 (and Beyond)

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Railroad stocks are set to roll and we’re going to climb aboard with two stocks—including one that’s hiked payouts by 50% in five years—we’ll delve into in a sec.

What’s driving this opportunity? Our usual contrarian mix of overlooked growth and stocks that have been tossed overboard, of course!

Since the days of the Wild West, railroads have been the backbone of the US economy, so when economic growth gets out of sync with railroad stocks’ prices—as is happening right now—we need to take notice.

As I write this, the US economy is still in growth mode and shoppers are still spending.… Read more

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The S&P 500 index has been “relief rallying” like crazy, but to most income investors, this means nothing. The wider the basket of stocks, the rougher the year it has been. Let’s consider that (as I’m writing this):

  • Year to date, the “big cap focused” S&P 500 is down “just” 12%. However,
  • When we weight its 500 stocks equally, its return drops to 20% YTD. And,
  • When we expand the universe to look at small cap stocks, we see the Russell 2000 is down a brutal 24% thus far in 2020:

Don’t Let the S&P 500 Fool You

Plus, we now face another problem: an income drought!… Read more

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