Make 5% to 9% Annually in the Oil Patch

The Contrary Investing Report

Investing and Trading News, with a Contrarian, Sarcastic Twist!

Energy prices have rallied furiously, but they likely have further to go. Oil and gas prices last peaked around 2014 and sunk slowly until the black goo hit negative prices in the spring of last year.

A six-year bear market takes more than 13 months to unwind. Which is why energy dividend stocks remain quite attractive.

Oil and gas stocks are 4% yielding on average, which is nearly a full percentage point more than we can get out of real estate investment trusts (REITs) at the moment. And as I’ll show you in a moment, we can squeeze yields of between 5.0% and 9.2% from “Texas tea” if we know just where to look.… Read more

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There’s a new closed-end fund (CEF) on the market, and it comes from one of the biggest CEF issuers in the space: BlackRock.

It’s big—with $4.5 billion in assets under management. You can tell that straight from the ticker symbol: BIGZ. The fund’s full name: the BlackRock Innovation and Growth Trust (BIGZ).

So we know it’s got heft—and it’s got BlackRock’s deep bench of talent behind it (remember that BlackRock is the world’s biggest investment firm, with $7 trillion under management). But does BIGZ have a place in your portfolio? That’s the question we’re going to tackle today.

BIGZ got its start in March, and it’s currently trading flat from its inception and trailing the tech-heavy NASDAQ, which is the best benchmark for the tech-heavy BIGZ.… Read more

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No doubt, there is a lot to be worried about right now in the financial world. Fortunately, there is finally a lot of worrying happening.

We contrarians welcome unease. Broader discomfort means dividend deals.

Investor sentiment is at last falling back to earth after months in the clouds. Sometimes these emotional drops are drawn out. Or the breakup can be short and swift.

Last September and October, too-cheery bulls got splashed with cold water. Their wake-up call, fittingly, came just weeks after we chatted about their “over the top” sentiment. We specifically discussed the likelihood of a 10% pullback given the extreme levels of investor cheer.… Read more

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“I have no clue what to do,” said a friend recently over backyard beers. “On the one hand, stocks are still rising. On the other, everything is pricey.”

I know you’re feeling my buddy’s pain—I get similar sentiments from readers of my Contrarian Income Report service all the time.

The last few weeks of wild swings sure don’t help. No doubt your finger has hovered over the buy button but you’ve hesitated, worrying you’re getting in at the top.

That’s understandable: no one wants to be the last buyer in a bull market!

Let the Market’s “Fear Indicator” Guide You to Big Gains (and Dividends)

The solution to this dilemma is a strategy only a contrarian could love—we’re going to navigate by the VIX—the market’s so-called “fear indicator.”… Read more

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Manufacturing is as cyclical a business as there is, and it’s about to take off, driven by two vastly misunderstood factors:

  1. An uptick in inflation, and
  2. A big jump in stimulus spending

What most people don’t get is that these two trends are inextricably linked. And sitting right where they meet is a closed-end fund (CEF) trading for 88 cents on the dollar and just waiting to pay us a fat 5.3% dividend.

Let’s start by taking these trends one at a time.

Inflation: Likely Not as Hot as Most People Think

Let me start by saying that the breathless media coverage of inflation is focused entirely on how it will crimp stock market returns.… Read more

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The Fed has crushed many retirements because bonds simply don’t yield enough. Heck, neither do most stocks thanks to the equity bubble they’ve inflated!

But we dividend-focused retirees have a four-letter secret at our portfolio’s disposal. I’m talking about yield machines that pay up to 8%. And thanks to a slow 2020, these stocks are still reasonably cheap. I’m talking:

R-E-I-T.

Real estate investment trusts (REITs) are a great source of yield. If you’re a regular reader, you’ll probably recall our reasons why REITs hold up well against inflation.

Today we’ll discuss some studies that support this “inflation-proof” position.

In theory, inflation should weigh on REITs much the way it does on many yield-bearing assets.… Read more

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Plenty of people blindly buy into the line that market volatility is a bad thing.

It’s easy to see why, after last year’s crash dented retirement savings around the world. Contrarians like us, of course, fight against the emotional pull to retreat when volatility stirs—and buy into a pullback instead.

The last year’s market run is proof this approach works. And it’s nothing new: we’re simply following the old Warren Buffett adage and buying when others are fearful. But it’s what we plan to buy now that separates us from the crowd, as I’ll show you in a moment.

It’s Not You—the Market Is More Skittish Than Before

One thing we can be clear on is that, yes, the market is more volatile these days.… Read more

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Let’s be honest: there are a ton of ways to collect passive income out there. But there’s only one that’s easy to get into (no matter how much money you have!), generates yearly cash payouts of 8% or more and is used by billionaire investment gurus on the regular.

I’m talking about an often-overlooked investment called a closed end fund (CEF). And today I want to show you how to invest in CEFs in just three simple steps.

CEFs are like mutual funds or ETFs in that they pool together money from investors, which the fund’s managers then use to buy a basket of stocks, bonds, real estate investment trusts (REITs) or other investments, depending on the CEF’s mandate.… Read more

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Let’s chat about making some real money in stocks. I’m talking about 14.6% returns per year, every single year.

I know, my 14.6% annual number sounds pedestrian in a world where peddlers are hawking virtual (pretend?) coins with pups on the cover. But my returns are real—and spectacular for investors who are patient.

With this method we can double our money every four years and ten months (the wonderful Rule of 72 says so!). And we can achieve these gains safely—without gambling or buying and hoping—because these profits are fueled by dividends.

The only twist from the traditional income investing that we both know and love is that we’re playing the dividend growth plus the current yield.… Read more

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Don’t let this inflation panic rattle you. This market is really just shifting gears, and we’re going to shift along with it, riding the waves to some big dividends that are about to switch into growth mode.

But timing is critical here, because we’re not going to be sitting on these dividends forever. Consider them a “swing trade” to bag big payouts now, plus some hefty dividend hikes. Then you’d take your returns on to the next bargain high yielder when the time is right.

More on this week’s hot-potato dividend plan in a sec. First, let’s delve into what this inflation-panicked market is up to, and how we contrarians can catch a tailwind.… Read more

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