Exposed: How I’m Grabbing (Monthly) 7.9% Dividends as Rates Plunge

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If you ever want to retire (or stay retired!), you’ve got a big problem. Bonds don’t pay much now, and they’re likely to pay less and less in the months and years ahead.

I probably don’t have to tell you that the yield on the 10-year Treasury note has crashed to 1.6%. In other words, a $500K investment would get you a pathetic $4,000 in interest income every six months (as Treasuries only pay semiannually, unlike the three strong monthly dividend payers I’ll show you shortly).

Then there’s the specter of negative interest rates, something folks in many countries already know: today, $15 trillion of government bonds around the world are sloshing around with yields below zero.… Read more

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I want you to think about your very first reaction when you flick on the TV and see the Dow has crashed 300, 500—even 800 points. It feels like you’re drowning, right?

It’s physical, like a gasp after falling into a cold lake. Your first instinct is likely to reach for the closest “life preserver.” For most folks, that means panicking and flipping holding after holding over to cash.

You’ve probably made this mistake. You might’ve made it last Christmas, when many investors, burned by last year’s selloff, threw in the towel …

… just in time to miss the 18% total return stocks have delivered since!… Read more

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If you’re a serious dividend investor, you should never trust a stock screener.

They might be OK for blue-chip stocks like Pfizer (PFE) and Procter & Gamble (PG). But these stocks don’t pay enough to properly fund a retirement portfolio powered by dividends anyway.

The big problem with screeners is that they get tripped up when yields get serious. They handle the 2% and 3% payers alright. They’ll spit back a fairly accurate dividend payout ratio based on earnings, and give you price-to-earnings metrics that are fair enough.

But high-yield structures like REITs and BDCs? Forget it. They break the machines.… Read more

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Will interest rates really get the chop everyone thinks they will as 2019 rolls into the home stretch?

The smart money certainly thinks it knows. Beyond tomorrow’s rate cut (which the pros see as all but in the can), futures traders predict two more chops—in September and December:

But here’s something no one will tell you: not a single person outside of Jerome Powell has any clue what the Fed will do next.

Not futures traders. Not your adviser. Certainly not the talking heads on CNBC.

That’s why we’re going to dive into three “forever” stocks that beat the market no matter what rates do.Read more

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Last time we had a July like this, REITs (real estate investment trusts) ran wild. The top plays delivered dividends plus price gains between 40% and 114%!

REIT Rhyme for 114% Returns?

Tell me if this sounds familiar:

  • It was July,
  • The stock market was hitting all-time highs,
  • And the Fed was about to cut rates for the first time in a while.

We shall see if July 2019 continues to “rhyme” with July 1995. Back then, we had Fed Chair Alan Greenspan introduce the concept of the “Greenspan Put,” the inside joke that the Maestro would save any decline in stocks with rate cuts.… Read more

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Believe it or not, we now have the best window to buy dividend stocks that we’ve had in decades. Two proven 100%-return indicators just flipped to “green.”

The conditions we’re about to see are rocket fuel for companies growing their dividends like weeds. As usual, we’re going to zig while like-minded money managers (you know, those that outperform a mere index) zag.

Our 100% Proven Contrarian Play

The first factor that points to more upside for stocks is the foul mood among the so-called “smart money.”

According to a June survey by Bank of America Merrill Lynch, fund managers expectations of global growth sank the most since November 1994.… Read more

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ETFs, or exchange-traded funds, are for suckers. There is no reason for any savvy income investor to get wrapped up in this “$3.4-trillion obsession.”

Why do I say $3.4 trillion? Because that’s how much Americans have tied up in them. But there are better ways to buy the same types of stocks, and shortly we’ll highlight three ETF replacements you can buy just as easily for yields up to 7.5%.

Wall Street is (of course) happy to play along with the ETF craze, cranking out fund after fund to give folks their fix—some so “out there” they track wheat futures, casino stocks, even companies that aim to curb obesity.… Read more

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Stock-market selloffs provide great times to buy big dividends. The stock market was a relentlessly receding tide in the fourth quarter, which is bad for “buy and hope” investors but quite helpful for income specialists like us.

Let’s consider high-quality real estate investment trust W.P. Carey (WPC). This REIT looks good at most prices, but the market gave us an exaggerated dip in December-early January that spiked its yield to nearly 6.5%. Savvy, patient investors who bought on this dip (like my Contrarian Income Report subscribers) didn’t just enjoy an excellent yield on the higher end of its five-year range – they also are sitting on 17% gains in just a matter of weeks!… Read more

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If you’re hunting for income, your job just got a lot tougher, and it’s all the Federal Reserve’s fault! Fed Chair Jerome Powell’s recent cave-in on rate hikes means the central bank is out of action for the rest of 2019—and its next move could even be a cut.

Sure, this has been great for stock prices, which surged 8% since the new year. But it’s crushed dividend yields, leaving you with far fewer buys to get the 6%+ yields you need to retire on dividends alone.

Look at how this past month’s price gain has compressed the average S&P 500 stock’s yield from a pathetic 2.1% to a very pathetic 1.9%!… Read more

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Wondering if it’s too late to jump on this market recovery? I have great news: it absolutely is not.

But you won’t reap the biggest gains by, say, putting cash into your typical S&P 500 name—or in a passive index fund like the SPDR S&P 500 ETF (SPY).

Because while rising corporate profits will likely propel the market higher this year, you’ll put yourself in a much better position by hitting out at the two sectors (and two specific buys) I’ll reveal now.

Both sectors will be on my personal list this year, and I’ll be recommending stocks from each one to members of my Contrarian Income Report service, too.… Read more

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