4 Dividend Resolutions for 2024

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Raise your hand if you want to actively work for income in 2024.

(Please note your dividend strategist already has his pointer finger in the tip of his nose. Not it!)

Here at Contrarian Outlook, we prefer passive dividend income to active income, thank you very much. Because trading hours for dollars is, let’s just say it, such a drag.

A job? Tired. Dividends, meanwhile, are wired. Since ‘tis the season for resolutions, let’s discuss my top four to retire on dividends in 2024.

Dividend Resolution #1: Project Our Income

If you’re a serious dividend investor, I hope you took my advice last week and grabbed your risk-free trial to Income Calendar.… Read more

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Federal Reserve Chairman Jay Powell is scared. First, it was UK pension funds. Now, the entire banking system has liquidity issues.

Fourteen years of quantitative easing is a tough habit to break! We are one year into the Fed’s attempt to tighten monetary conditions.

Should we buy bargains? Or sell now and go shopping later?

Fellow contrarians want to know! Our Contrarian Outlook customer service line has been hot. Today, we’ll put on our short-term thinking caps and discuss your dividend trading questions.

Q: Do you see any good buys among the regional banks where the “baby got thrown out with the SVB bathwater?”Read more

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Let’s book these 104% profits today.

We’ll sell this winner and then consider a 9.3% dividend that could really soar in 2023. It couldn’t be any cheaper, either—this high-quality fund is trading at a 17% discount to fair value!

But wait, there’s more in the bargain bin. I’ll also share a 5.9% payer that is, likewise, trading for just 83 cents on the dollar—also 17% off!

More on these incredibly cheap dividends in a moment. First, the winner.

Remember when we “pounded the table” on Exxon Mobil (XOM) in April 2021? We were right. The then-6.1% payer was too cheap!… Read more

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Peter is an investing legend. Dude collects $400,000 per year in dividend income.

He retired at age 53, by the way. From the finance industry, naturally. Peter wrote a book and cruised around as a public speaker.

The speaking fees and book royalties were gravy, no doubt. With $33,000 in dividend income coming in each month, I’m sure Peter does not sweat his bills.

Now what can we contrarian income investors learn from master dividend investor “Payout” Peter Thornhill?

Not much.

The guy has an $11 million portfolio. Of course his dividend cash flow is going to rock. It may only be 4%, but that’s more than enough when this is the pile he’s deploying:

A simpler investor can do just as well with a similar war chest.… Read more

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“Brett, what do you think of SCHD?”

As soon as I heard the “C” I figured we were talking Schwab US Dividend Equity ETF (SCHD). (Your income strategist can typically “name that dividend ticker” in two beats!)

“Eh,” I replied, visibly struggling to string together a positive response to my AAII presentation attendee.

“SCHD owns some good names. A few,” I shrugged.

“It will generally keep you out of trouble.”

Safety is all the rage in 2022. Pain has been felt on both ends of the stock-and-bond spectrum.

Stocks are down because the Federal Reserve is tightening. Bonds, meanwhile, are supposed to balance the ship when stocks sink.… Read more

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Attention, growth investors! A quick stock market question for you.

(Dividend people, you are welcome to play, too.)

Take a quick peek at the chart below. The lines are revenue gains over the past twelve months for four stocks.

Three of them are top holdings in ARK Innovation ETF (ARKK). The fourth, well, is a contrarian special that careful readers already know. (Hint, hint.)

Which sales curve would you want to own?

Pick Your Growth Stock

Did you peek at the key? Of course you did. Well, were you surprised that Exxon Mobil (XOM) was running laps around these three laggards?… Read more

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Will China buy Bitcoin? If I were President Xi Jinping, looking across the Taiwan Strait, I would. Why wouldn’t he want to diversify his $1 trillion pile of Treasuries?

But there’s one thing that Xi—or any autocrat, for that matter—needs more than coins: Real assets with cash flow.

We’ll talk dividend trades that will benefit from these global trends in a moment. First, let’s start with crypto, because (indulge me, please) I need to get caught up on these questions. I’ve been saving a note from Joseph B., who asks what recommendations we have on cryptocurrencies.

Fellow reader Ted F. also asks about crypto, but from the Federal Reserve’s perspective.… Read more

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“Mom, please make sure you secure your mask first before assisting the kiddos.”

We receive this reminder every flight from at least one flight attendant. Mom receives the reminder while your income strategist sits across the aisle (a mile away as far as his parenting partner is concerned) in an uneventful seat dubbed Daddy Island.

This, of course, runs counter to Mom’s (and even Dad’s) instinct. If your kid is in trouble, your first, second and third reaction is to help your child first. The airline’s point is that we can best help our children by first securing our own oxygen.… Read more

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We contrarians make our money by buying when things look bleak. We did that, and we’re up 149% on this excellent energy dividend.

But our strategy has suddenly become popular. Heck, I saw a front-page piece on Bloomberg.com outlining our “Crash ‘n Rally” energy strategy!

So, what do we do now?

We’ll talk about next steps for energy dividends in a moment. First, let’s recap how we got here so that we can decide if we want to order another quadruple-shot of Texas tea or step aside of the mainstream herd.

In April 2020, crude oil prices crashed. They actually hit negative territory, which means producers were paying people to take the goo off their hands.… Read more

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As the stock market returns to Planet Earth, we contrarians will have an opportunity to cherry pick some bargains. This is a good thing for us income seekers. We’ve been thin on dividend deals since the Federal Reserve cranked the printing presses in the spring of 2020.

Last year was slim pickings for income plays. When the Fed’s easy money drives prices of everything higher and higher, our dividend yields go down.

This makes it challenging for us to identify meaningful yields with a bit of upside. After all, we’re in the business of buying low and selling high (not buying high and hoping to ride a price even higher).… Read more

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