Let’s Buy Oil’s Snubbed Sibling Now (for 5.6% Dividends and Upside)

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Let’s Buy Oil’s Snubbed Sibling Now (for 5.6% Dividends and Upside)

Natural gas prices have been completely washed out—and that’s set up some sweet dividend opportunities for us contrarians to tap into.

(These opportunities aren’t just in gas, by the way: China’s reopening and the Biden administration’s need to refill the Strategic Petroleum Reserve—which it’s been using to keep a lid on oil prices—will also lift the goo. We discussed 3 stocks to play crude’s likely rebound on February 4.)

To get a sense of the opportunity setting up for us here, let’s look ahead to next winter, shall we? It’s tough to see how gas can stay low with a setup like this:

  • Russian gas will still be a no-go—leading to another dash to boost European supplies over the summer, especially with the current winter looking like it’ll end on a cold snap, draining off the surplus gas the continent is sitting on now.

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This Fund Profits From China Fears (and Yields 9.5%)

Recent headlines have spurred some readers to write in about China—specifically what rising tensions between Beijing and Washington (no thanks to the former’s ham-fisted spy-balloon fiasco) might mean for their portfolios.

First up, we always need to bear in mind that stocks—and in particular my favorite way to hold stocks (through a high-yielding closed-end fund, or CEF)—really are a long-term investment. I know that sounds obvious, but it can be easy to forget when alarming headlines—a war or a pandemic, say—flash across our screens.

In other words, global chaos is really nothing new for stocks. The difference today is that we’re more connected than ever, so every move made by one of America’s adversaries is emphasized all the more.… Read more

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Swimming Upstream: 5 Stout Dividends Yielding Up to 25%

Want to know the secret to retiring on dividends alone?

Keep that capital intact.

We invest to generate income. The more we have, the greater our potential payouts. So, losing principal is the cardinal sin.

We want our dividends. And we want our prices intact, or better. (If they grind higher, we don’t argue!)

Stocks that are going “up” are tough to argue with. I know, I know—as contrarians we want to bargain shop. We can’t help ourselves to find a deal.

Well deals are great, but so is momentum—especially when it comes to dividend stocks, especially in a bear market.… Read more

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This Is the Market’s Biggest Risk Now (and This 7.3% Dividend Will Profit)

With the markets off to a hot start so far this year, it’s only natural to think things just might be getting a little toppy.

I get it—and the truth is, this market is not without the risk of a short-term pullback.

Here’s the good news: if this possibility has you worried, there are a few closed-end funds (CEFs) out there that are perfectly designed for this risk. And they’re trading at attractive valuations, while paying big dividends, too. We’ll delve into one particular ticker a little further on. It’s a “goldilocks” fund that yields a steady 7.3% and charts a steady course through any volatility we might hit in the near term.… Read more

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Add “X” to Boost QQQ Yield From 0.9% to 8.4%

Get ready, my fellow contrarians—QQQ “amateur season” is approaching! If you watch as much March basketball as I do, you’re about to hear this repeated hundreds of times:

I’m an investor in Invesco QQQ, a fund that gives me access to Nasdaq-100 innovations like volumetric video technology.
– Invesco TV ad for its Nasdaq-100 ETF 

 
This quote, my fellow “March Madness” fans, is from a commercial for Invesco QQQ Trust (QQQ). Within weeks, it will be played nonstop. The ad features flashy camera angles with average investors “dropping knowledge” about the tech stocks they are proud to own via this ETF.… Read more

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How This Weird “Dividend Magnet” Drove 252% Gains (and Crushed ETFs)

If I can give you just one piece of advice to start 2023, it’s this: do not trust your dividend income to ETFs!

It’s one of the biggest mistakes I see people make—especially with the market’s gains this year. These first-level players (wrongly!) think that in a rising market, they can buy pretty well anything and be A-OK.

Not so.

In fact, a rising market when you’re most likely to buy low-quality investments, puts your portfolio in danger in the next downturn. Just ask anyone who bought crypto or profitless tech in 2021!

And dividend ETFs are at the very top of our list of assets to avoid, not only now but always.… Read more

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Buying This Fund Is Like Buying Apple With a 12.1% Dividend

We’ve seen a big bounce (and 12%+ dividends!) in one particular type of closed-end fund (CEF) this year—and all of my buy indicators suggest this profitable play is still in its early stages.

Specifically, I’m talking about tech-focused CEFs—which we’re getting a nice second chance to buy thanks to last week’s earnings whiffs from the likes of Apple (AAPL) and Alphabet (GOOGL).

Buying a tech CEF is like buying an ETF that focuses on technology, but with two key differences:

  • Big dividends: the CEF we’re going to analyze today yields 12.1%—and it pays dividends monthly, too. You and I know that both of these things are unheard of in the world of “regular” stocks and funds.

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This 11% Dividend Stock Has 11%+ Upside, Too

What’s better than a safe 11% dividend? How about one with 11% upside or more, too!

Oil and gas stocks are in the midst of a multiyear bull market. China is about to reopen, which will reignite energy demand.

Which means the time to buy the dip in the black goo—especially dividend-paying energy stocks—is right now.

Let’s start with that 11% payer which also boasts a unique dividend distribution model.

A Twisted Path to Big Energy Dividends

Pioneer Natural Resources (PXD), a Texas-based oil exploration company that’s a pure player in the enormous Permian Basin, yields 11%.

Eleven percent!… Read more

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This REIT Is an MVP That Yields Nearly 3X the Competition

It’s a new year, and that means a lot of suggestions for new approaches to investing.

But here at Contrarian Outlook, we’re not interested in change as the illusion of progress. We’re only interested in one thing – long-term investments that allow us to retire worry-free!

So don’t worry, friends… no gimmicks for you today! Just another case-study in our proven investing strategy.

As I have outlined in previous analysis, my go-to income investments are what I like to call “MVP” stocks. Those are companies that have strong Management, an attractive current Valuation for shares, and generous and sustainable Payouts to provide reliable income.… Read more

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CEF Return of Capital Explained (Hint: It’s a Benefit, Not a Flaw)

We’ve been getting a number of questions from CEF investors in the last few weeks about return of capital, or ROC.

This is a measure that shows up regularly with CEF dividends—and it makes many folks wonder if their funds are simply handing back the money they’ve invested as part of their payout.

(Note that much of what we’re going to discuss below is tax related. I’m not a licensed tax professional, so I can’t give you tax advice. You should consult a tax professional for details on your own personal situation.)

First, let’s be clear that all CEFs that are publicly traded on US exchanges are actively investing in something, with funds specializing in municipal bonds, real estate, stocks, preferred shares, real estate investment trusts (REITs) and other assets.… Read more

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