Dividend Payers Up To 9% That Don’t Crumble Under Pressure

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Election. Recession. No landing. Social unrest. Election contest.

Low beta, anyone?

Today we’ll talk calm in a sea of manic. A six-pack of tranquil dividend payers yielding up to 8.9%.

How do we know they’re tranquil? Beta, baby.

A stock with a beta above 1 is considered more volatile than “the market.”

A stock with a beta below 1 is considered less volatile.

Let’s say a stock had a beta of 0.5. This means it’s half as volatile as the market. If a 30% bear market swipes, this safety stock only loses 15%.

It’s an inexact science—I wouldn’t build projections per se around current beta.… Read more

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First-level investors think the key to retiring on dividends alone is to find the largest yields they can and ride them into the sunset.

But while it’s important to lock down fat yields—like the five-pack of 5.5%-10.4% yielders I’ll share with you today—that’s only part of the puzzle. We need two more things from our long-term income holdings:

  1. Dividend safety. A 10.4% payout is only helpful if it’s actually going to get paid for quarters and years to come. No dividend cuts, please.
  2. Principal safety. We’re also not looking to lose 10.4% per year in price. Or anything in price, for that matter.

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Today we’re going to click our way to a dividend stream that matches the average household income stream in America—$70,784 per year—and we’re not going to do it on a much smaller nest egg than most people think is possible.

This is important now, because the financial media continues to pump out ridiculous answers to the question of how much most folks need to retire. A recent Bloomberg story, for example, said we’d need $3 million saved to clock out comfortably!

Luckily for us that number is way off. Consider this chart:

Source: CEF Insider

Here you see four different scenarios for getting that $70,784 in yearly dividend income, including two Trinity University studies showing risky and conservative estimates, based on 3% and 4% withdrawal rates.… Read more

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It’s a new year, and that means a lot of suggestions for new approaches to investing.

But here at Contrarian Outlook, we’re not interested in change as the illusion of progress. We’re only interested in one thing – long-term investments that allow us to retire worry-free!

So don’t worry, friends… no gimmicks for you today! Just another case-study in our proven investing strategy.

As I have outlined in previous analysis, my go-to income investments are what I like to call “MVP” stocks. Those are companies that have strong Management, an attractive current Valuation for shares, and generous and sustainable Payouts to provide reliable income.… Read more

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Shall we turn 2023 into a bounce back year for our retirement portfolios?

How about we shoot for, say, 23% total returns?

The surest way to do it is by employing a technique I call the dividend magnet.

It’s safe. Reliable. And works beautifully on the back side of a bear market.

I recently gave a guest lecture for a finance class at California State University, Sacramento. One of the students, to put it lightly, was excited to make money in stocks.

His hand went up from the back of the classroom. (Nobody sits in the front rows. Some things never change!)… Read more

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REITs (real estate investment trusts) are still delivering roughly twice the income of the broader market. And that’s just the sector average.

Four highly profitable REITs in particular are yielding 4% and up today. We’ll discuss them in a moment.

Interest rates are rising, and “common wisdom” says it’s a bad time to buy REITs because they behave like bonds. Wrong.

As long as the economy keeps chugging along, and these specific rents are getting paid, then the dividends are going to continue being dished. Period. And we’re all about the dividends here at Contrarian Outlook.

S&P Global research notes that rising interest rates “are frequently associated with economic growth and rising inflation, which can indeed be a boon for the real estate sector.… Read more

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I typically make a trip out to Las Vegas every couple of years, although the pandemic of late has busted those plans.

I’m a big fan of blackjack; it just always seemed like the one game at the casino I could play where my skills gave me an opportunity to win.

I was sitting at a table at the Tropicana on the Vegas strip a few years back, holed up with four other gamblers, hoping for a slow crawl to a big win at the tables.

I was playing small, only $15 per hand, but I got on a roll that seemed like it couldn’t be stopped.… Read more

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Have real estate investment trusts (REITs) finally “decoupled” from rising interest rates? In other words, has the popular (but untrue) “rates up, REITs down” reasoning been busted (again)?

For those of us who have been waiting for the stock market’s landlords to carve out a bottom before buying anything new, we may be back in business:

REITs Finally Rising with Rates?

Regular readers know that the best REITs do just fine as rates rise. That’s been the case historically, and they’ll rally again this time around.

Why? Because elite landlords simply keep raising their rents.  These higher cash flows translate to higher dividends, and higher stock prices, regardless of what the Fed is up to.…
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