4 Dividend Dogs That Rallied More Than Deserved – Sell Now

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4 Dividend Dogs That Rallied More Than Deserved – Sell Now

That dip didn’t last long, did it?

The S&P 500 is back around 2,800, the Dow is back around 26,000, and stocks – which frankly were never really “cheap” even in the December doldrums – are back to being hilariously overpriced. And that’s a problem on two fronts.

  1. It makes finding values – an important aspect in collecting big total returns – exceedingly difficult.
  2. The more richly stocks are priced, the harder they can fall, making dividend landmines more plentiful in the current environment.

How bad is it out there?

Here’s a look at the short-term, which shows valuations are clearly back to their pre-dip “normal.”


Data Source: Multpl.com.… Read more

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The Next GE? Avoid These 5 Dicey Dividends

Do you own the next GE? I’m talking about five dividends that are not as sacred as their shareholders mistakenly believe. We’ll review them in a minute.

First, the warning signs. Many investors were kicked in the gut by General Electric (GE) last year, no thanks to pundits who ignored numerous red flags and encouraged people to buy GE and its historically generous yield. Sure, 5% isn’t “high,” but in a sleepy industrial like General Electric, that’s certainly attractive at a glance.

It also was downright dangerous.

Anyone keeping tabs on the all-important payout ratios for General Electric’s dividend had to see the writing on the wall.…
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Ditch These 5 REIT Duds, Grab This Bargain-Priced Pair Instead

Real estate investment trusts (REITs) are one of the market’s best sources of high yield. But they can also be one of its searing sources of heartburn.

For your sanity’s sake, and for the good of your retirement savings, avoid the five high-yielding REITs I’m going to warn you about today. Then reinvest that money into the sure-fire 8% yielders I’ll highlight after that.

REITs are set up, by design, to be income powerhouses. That’s the deal. They get to evade Uncle Sam, and in return, they have to funnel the lion’s share of their profits to shareholders. But a mandate only goes so far – if a REIT has less cash to redistribute, simple math says you and I suffer.…
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2 Bond-Like REITs to Buy Now (and 1 to Sell)

What could be better than receiving a raise every year? How about getting more cash in your pocket, and increasing your net worth?

Owning high-quality REITs (real estate investment trusts) with track records of consistently growing dividends is a proven strategy that delivers income today and rewards you with attractive gains for retirement, too.

Let’s consider three well-known REIT names to show how dividend growth can drive price appreciation, and generate outsized returns. There is no magic formula. It really boils down to common sense. A dividend cut or stagnant pay-out can spell disaster, while a growing dividend rewards investors two ways.

Well-Covered Dividends Matter

Real estate investment trusts own hundreds or even thousands of properties, with an enormous number of restrooms, parking lots and roofs that must be maintained. …
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