3 Steps for 9.7% Dividends, 200%+ Upside (Starting in 2021)

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3 Steps for 9.7% Dividends, 200%+ Upside (Starting in 2021)

Stocks are up, the economy is in shambles and lockdowns are making a comeback. But people are also being vaccinated as I write this, just 12 months after we learned that COVID-19 was even a thing.

How do we invest through this transitional market? I’ve got a three-point plan for you that works in any economy—not just the Twilight Zone one we’re living in now.

Step 1: Start With “Tollbooth Stocks” and Build From There

Tollbooth stocks are the kinds of companies we safety-conscious dividend investors love: they hold the infrastructure—think pipelines, warehouses and data networks—big players like, say, Amazon.com (AMZN) must have to operate.… Read more

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3 Steps for 9.7% Dividends, 200%+ Upside (Starting in 2021)

Stocks are up, the economy is in shambles and lockdowns are making a comeback. But people are also being vaccinated as I write this, just 12 months after we learned that COVID-19 was even a thing.

How do we invest through this transitional market? I’ve got a three-point plan for you that works in any economy—not just the Twilight Zone one we’re living in now.

Step 1: Start With “Tollbooth Stocks” and Build From There

Tollbooth stocks are the kinds of companies we safety-conscious dividend investors love: they hold the infrastructure—think pipelines, warehouses and data networks—big players like, say, Amazon.com (AMZN) must have to operate.… Read more

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1 Dumb Dividend Capture Strategy, 2 Better Income Ideas

Our beat here at Contrarian Outlook is dividends. We seek to collect them using proven income strategies.

Dividend stock investing isn’t easy, even though it looks so on the surface. (Find a high yield, and buy it!) We’ve all had our heart broken by one or more “disappearing” dividend payers in the past. These delinquents are the reason we place such a premium on dividend security.

One secure-looking strategy is (unfortunately) known as dividend capture. I don’t like the name because it sounds like something we should be interested in. I don’t like the approach itself because it doesn’t really work.… Read more

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2 “Tollbooth” Dividends Growing Payouts 135%+

Election chaos—especially after Friday’s bombshell—could be a knockout blow for this market bounce. I’m worried. And going by our Contrarian Outlook mailbag, plenty of readers are, too.

A typical question goes like this: “Brett, what should I buy/hold/sell if X/Y/Z happens after November 3?”

Now we have to add the president’s positive coronavirus test into the mix!

Rest easy—I’ve got you covered. Today we’re going to talk about two stocks you could hold through 2021, 2022, 2023, and beyond. These companies’ current dividends are much higher than the S&P 500 average. But the real story is their dividend growth, which will triple up your income stream in short order.… Read more

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My 2-Step Plan for Safe, Crisis-Proof 7% Payouts

If you have cash to deploy in this market, you’re in luck: dividend yields on some top-name stocks are scraping historic highs. And these same stocks are often so oversold they’re primed for big upside, too.

The obvious question follows: how do you find these income-and-growth plays? Let’s dive into a two-step “screen” that does just that. It starts with the lifeblood of share prices (and dividends): corporate earnings.

Unfortunately, growing profits are getting rarer these days. Look at this chart from FactSet, showing projected earnings for the just-completed first quarter, as more S&P 500 firms report:

Earnings Drop, But Look to the Left

So far, it appears that most companies will see earnings declines in the first quarter of 2020, but when we take the market apart sector by sector, we see that there are a few sectors, like consumer staples, utilities and health care, showing rising earnings—and in the case of utilities and telecoms, significant earnings gains.… Read more

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How to Buy Microsoft for 8.6% Off (with a 6% dividend!)

There’s a dangerous myth going around: that stocks are in a bubble, and if you buy now, you’ll lose money.

This myth is dangerous because it is discouraging people from putting money in one of the most powerful wealth-generating machines on earth. And income-seekers (retirees, in particular) who know how to navigate this market can not only get massive profits but also strong cash flow, like the 6% dividends, paid monthly, on a fund I’ll introduce you to shortly. This fund is worth your while because it’s a play on US stocks at a time when stocks are strong and getting stronger, and because it’ll get you those stocks at an 8.6%… Read more

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Dogs of the Dow for 2020: Dividend Bargains, or Yield Traps?

The New Year is here, which means it’s once again time to revisit a contrarian (and income) investing tradition: The “Dogs of the Dow.”

This simple yet famous dividend strategy involves buying the 10 highest yielders in the 30-component Dow Jones Industrial Average at the beginning of each year.

It’s an income play, sure, but this strategy also has to do with value. The idea: Truly strong blue-chip stocks rarely become “obsolete,” so high yields—often driven by lower prices in the prior year—are just a signal that the stocks are oversold and due to bounce back.

It’s a win-win, in theory.… Read more

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Week in Review: U.S. Markets Quiet During Short Week as Government Shutdown Temporarily Ended

The broader stock market averages digested recent gains this week, as trading activity was shortened by the Martin Luther King Jr. holiday on Monday.

Trade talks with China appear to have reached a stalemate, as U.S. Commerce Secretary Wilbur Ross said on Thursday that the two sides were “miles and miles” apart from settling trade issues. Back at home, the Federal government shutdown found a temporary solution on Friday. The deal re-opens government operations through Feb. 15, as Congress and the White House will continue to discuss border security.

Earnings Season in Full Force

Despite the holiday, it was a busy week for earnings.… Read more

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9 Dividend Stocks That’ll Double Your Money in 2019

Moe Ansari, host of the popular Market Wrap radio show and podcast, recently asked me on air:

“Brett, how do you find dividend paying stocks that will double your money?”

He was intrigued enough by my analysis to ask me on his show, but I knew he was a bit skeptical as well. And that’s perfectly normal – even experienced investors and money managers like Moe think of dividend payers in terms of their current yields only.

Price appreciation potential often gets ignored, and the thought of achieving 100%+ profits from a safe dividend payer sounds absurd. But smart investors bank their payouts while their stocks double in price – whether it’s a bull, bear or sideways market.… Read more

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5 Blue Chip Dividends That Are Doomed

Even legends can lose their edge. This applies to acclaimed investors and dividend aristocrats alike.

2018 was an explosive news year that will be remembered for many reasons. But one thing that will go under the radar is how this year has been a turning point for numerous old-guard dividend stocks. These companies have been no-brainer holdings in countless retirement portfolios for years – in fact, chances are you hold one if not several of them.

I’m going to highlight five of these revered but poorly aging blue chips in a minute. But first, I want to show you the danger of avoiding warning signs, even in legendary investments.… Read more

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