Contrarian Signal Tells Us These 7% Dividends Are Good Buys

Our Archive

Search completed

Contrarian Signal Tells Us These 7% Dividends Are Good Buys

Let me say right now that, like most people, I have no idea where the trade tensions we’re living through will end up. But here’s something I will say: Whenever I have any doubt about the future, I look to the 10-year Treasury rate—and I recommend you do the same.

And the 10-year rate—pacesetter for rates on most loans—is screaming one thing at us right now:

Fade the inflation fears that are everywhere these days.

So we’re going to take Mr. 10-Year’s advice and “buy the dip” in 2 “bond-proxy” closed-end funds (CEFs)—each yielding around 7%—that we’ll discuss in a bit.… Read more

Read More

Contrarian Signal Tells Us These 7% Dividends Are Good Buys

Let me say right now that, like most people, I have no idea where the trade tensions we’re living through will end up. But here’s something I will say: Whenever I have any doubt about the future, I look to the 10-year Treasury rate—and I recommend you do the same.

And the 10-year rate—pacesetter for rates on most loans—is screaming one thing at us right now:

Fade the inflation fears that are everywhere these days.

So we’re going to take Mr. 10-Year’s advice and “buy the dip” in 2 “bond-proxy” closed-end funds (CEFs)—each yielding around 7%—that we’ll discuss in a bit.… Read more

Read More

3 Contrarian Picks for Trump 2.0 (Yields Up to 7.5%)

At times like these, I’m reminded of a quote from Howard Marks, the most successful value investor you’ve likely never heard of. (Warren Buffett is a fan.)

Marks’s monthly “Oaktree Memos” are well worth a read. And in his insightful book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, he wrote:

“What’s clear to the broad consensus of investors is almost always wrong.”

This quote has been on my mind lately because everyone is convinced that Trump 2.0 will lead to higher inflation.

I’m sure you can see where I’m going: Higher inflation begets higher interest rates.… Read more

Read More

I SPY a Laggard: 5 Divvies Up to 9.2% to Buy Instead

Be honest. I won’t be mad, but just admit it.

You’ve got some SPY in your portfolio. So much in fact you’re probably trying to quickly change the subject from the SPDR S&P 500 ETF Trust (SPY).

I’m not mad. (I’m just disappointed—ha!) We refer to SPY as “America’s ticker for a reason.” It is everywhere.

And it’s OK. Really it is. Holding SPY has worked out this year. But we’re now at an inflection point—which is why we are having this conversation.

Only three stocks account for 21% of the S&P 500. Apple (AAPL), Nvidia (NVDA) and Microsoft (MSFT) determine the entire market’s moves!… Read more

Read More

The “Electrify Everything” Trend Is Real: These Dividends Will Win Big

The media hype machine is in overdrive, pushing utility stocks as a savvy way to play AI’s growth. You’ve no doubt seen these headlines (or some of the hundreds of others like them):

  • “The Unlikely Stocks That Became a Hot Bet on AI” –The Wall Street Journal
  • “AI Could Drive a Natural Gas Boom as Power Companies Face Surging Electricity Demand” –CNBC
  • “Utility Stocks Could Be Headed for a Decade of Strong Growth, Driven by Data, AI” –Barron’s

Before we go further, let me say right off the hop that we contrarians never chase headlines—we’re always looking to buy value first and foremost—high-yielding stocks that are washed out, in other words.… Read more

Read More

This 8.1% Monthly Dividend Pays Us While We Sleep

When it comes right down to it, there are really only two ways to get rich:

  • Through your investments.
  • Through your labor.

Let me be clear that we aren’t fans of Option 2. A J-O-B? No thanks! We’re retired—or on our way to it.

Don’t worry. Your income strategist has you covered.

How to Retire on 8%+ Dividends That Roll in “Overnight”

If you’re like me, on your dividend “paydays”—a stock’s payable date, in other words—you wake up, grab a coffee, log into your investment account and immediately do something with that “work-free” income.

Pay your bills, reinvest, drop it into an emergency fund—whatever works for you.… Read more

Read More

Contrarians: Our Buy Window on This 8% Dividend Is Open (for Now)

It blows me away that folks still think high interest rates will be around forever. Truth is, rates are already starting to fall!

But no one’s really paying attention (yet!). Which leaves us a brief window to lock in some sweet 8%+ dividends from one of our favorite utility-focused funds. This bargain-priced buy soars when rates drop.

Look Beyond the Headlines for the Real Rate Story

Remember January, when all the talk was about how rates would be cut six times this year?

Poof. Those hopes were history before winter—such as it was—ended.

Nowadays, futures traders have almost completely thrown in the towel—they’re calling for just two rate cuts between now and January.… Read more

Read More

2 Safe “Retirement-Maker” Dividends Up to 8.6% Paid Monthly

Would you believe, my fellow contrarian, that most of our vanilla income friends settle for utility dividends that pay quarterly?

Ha!

Unfortunately (for them) that’s no typo. There are millions of investors just like them who are OK being paid every 90 days.

Yes, ninety!

Obviously, they don’t read highbrow publications like Contrarian Outlook, where we highlight monthly dividend payers. Today we’ll discuss two that pay 8.3% and 8.6% respectively.

With yields like these, we can actually retire on dividends. Take a chunk of money that we’ve saved up and convert it into regular cash flow. A million dollars, for example, can become $83,000 or $86,000 annually in dividend income.… Read more

Read More

I Bond Tourists: “Roll” Funds Into This Elite 8.2% Payer

You and I, my fellow contrarian, are old enough to remember when “I bonds”—US savings bonds designed to protect you from inflation—yielded 9.62%.

It was May 2022. Just 14 months ago!

Ah, the good ol’ days. Since then, Series I savings bond rates have tumbled to 4.3%.

Many readers wrote in with I bond questions earlier this year. The savings vehicles boasted a still sweet 6.89%. But they had two major limitations:

  • I bonds tie up our money for a year.
  • We can only invest $15,000 in them annually.

(The annual limit is $10,000 per person, plus an extra $5,000 per year if using a federal tax refund.… Read more

Read More

How to Collect $132,000 in Dividends on a Million Dollars

While vanilla investors worry along with the herd, we contrarians are buying. And oh, the yields we have available!

As I write to you today, I’m staring at no less than 29 income funds that yield more than 8%. Twenty-nine paying more than eight!

For retirees with a million-dollar portfolio, this is $80,000 per year in dividend income. Actually, more, because some of these funds pay up to 13%.

Why would we sell when this is the best time to buy in years? I explained this while yapping with Moe Ansari on his Market Wrap program. Moe asked me: “We hear all the ‘Doom and Gloomers’ out there.… Read more

Read More

Categories