Five 8-10% Yielders That Can Actually Grow Your Portfolio, Too!

The Contrary Investing Report

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

Many investors think they need to choose between current income and price upside. They don’t.

In a moment, I’ll highlight five stocks paying between 8% and 10% with 40% upside to boot.

Let’s face it – growth matters. It’s the best way to retire on a nest egg of just $500,000:

How to Stretch Your Investment on $500,000

The table above assumes a nest egg of half a million dollars that yields 8% a year, and absolutely no dividend reinvestment – here, you’re putting every cent of income into your pocket. Look how much that $500,000 expands over just a few years as you’re able to achieve more capital gains out of it. Even if you’re conservative and want to assume just 4% in annual growth out of your portfolio, that’s an extra $240,000 after 10 years – a much better position to be in than if you settled for a no-growth portfolio by selecting subpar high yielders …
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The past year has been good for the S&P 500: it’s up about 15.7%, including dividends.

So if you’re simply tracking the index through an exchange traded fund, congrats. That’s a decent gain.

But I’ve got one simple trick—and a far superior fund buy—that can help you do even better … and grab a big chunk of your gain in cash, too.

That trick? Covered calls.

Covered what?

Covered calls are a strategy in which investors buy stocks and sell call options against those stocks.

Think of call options as a kind of insurance; investors buy them if they are short the market and want to protect themselves from blowing up in case the market rallies. If you sell those options to investors, you’re essentially becoming an insurer, giving these gamblers the protection they crave to cover their risky bets. …
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Marc Faber likes gold at these levels – the physical variety that is – and recommends storing it anywhere but the US (much to the shock of the potted plants in suits on CNBC). Interview highlights: On gold’s lackluster year: Money printing does not lift all assets at the same time with the same intensity […]

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Not only are investors all lathered up these days – they appear to be quite levered up, too.  Courtesy of the Jutia Group: It’s official… Margin debt—that’s the amount of money borrowed to purchase stocks—on the New York Stock Exchange (NYSE) reached its all-time high in April. Margin debt on the NYSE registered at $384.3 […]

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Just how meaningful was today’s late vomiting action from the market?  Technician Carl Swenlin pulls up the charts for each sector and puts it in perspective… Sector Check by Carl Swenlin The S&P 500 component stocks are divided into nine sectors. All the stocks are used, and each stock is only used once. Those sector […]

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The usually-zen Sy Harding is all fired up today – please read on for a “too big to fail” undressing! Too Big To Fail Banks Certainly Have Not By Sy Harding Fair warning – the following may make you sick. This week the Federal Reserve of St. Louis released a report estimating that Americans on […]

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When gold and silver crashed, I dialed in my favorite leveraged proxies for close viewing – Royal Gold (RGLD) and Silver Wheaton (SLW). Both are great businesses – junior miners who don’t actually do any mining.  Rather they are royalty companies, who own the gold and silver in the ground respectively, and cut deals with […]

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Jim Rogers was last week’s guest on Porter Stansberry’s usually excellent podcast Stansberry Radio.  I am throwing in the “usually” qualifier because this was, in my opinion, a poor interview by Porter (who is normally good)…I thought he spoke way too much and didn’t let Jim get enough in. Regardless, it’s worth a listen – […]

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Stock market technician Carl Swenlin looks at the Rydex Ratio today – an indicator screaming out that it’s been a LONG time since sentiment was this bullish. Rydex Ratio Reflects Very Bullish Sentiment by Carl Swenlin As prices soar, the Rydex Ratio reflects increasingly bullish sentiment. The chart shows that the Ratio has not reached […]

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It’s been awhile since we’ve heard from favorite Hugh Hendry…in fact he’s so far under the radar these days that his new commentary is six months old when it finally hits the streets! Here’s a 20-min clip of Hendry (via the Big Picture) discussing the Chinese economic mirage (in his view), Japanese deflation, gold and more […]

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