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3 Funds To Buy On This Pullback (7.7% Dividends, 200% Payout Growth)

Forget the trade war noise. Here’s the only thing you need to know: if you’d bulked up your stock holdings on any of the dips we’ve seen in the last four years, you’d be a lot richer today.

The reason for the market’s “one step back, two steps ahead” pattern is simple: despite the interest rate- and trade-driven terror, corporate profits and sales are rising (as are workers’ wages), and unemployment is low.

In other words, the US economy is solid—and it’s stayed solid through every short-term crisis of the last few years. So now we have another pullback that’s given us another chance to amplify our upside.

But what to buy?

You can easily get into the market with an index fund like the S&P 500 ETF , but there’s a problem: we want to have a nice stash of dividend cash to drop into stocks on the next pullback, and with SPY, your payouts are tiny, with just a 1.9% dividend yield.

Today In: Money

This is where closed-end funds (CEFs) come in.

With an average yield of 7.4%, CEFs are much bigger income producers than the index, and three CEFs are particularly appealing right now, with overhyped fears making them unusually cheap.

Let me explain.

Because CEFs’ market prices can deviate from the value of the holdings in their portfolios (called the portfolio’s net asset value, or NAV), CEFs can trade at wide discounts to their NAV—even if the funds have a long history of strong performance.

That’s exactly what we’re seeing in the three funds I’m going to show you now.

Bargain CEF Pick No. 1: Buy Like Buffett (But With 209% Payout Growth)

Let’s start with the Boulder Growth & Income Fund (BIF), whose 3.9% yield is more than double that of the average S&P 500 stock, even though it’s actually on the small side for a CEF. Plus, BIF pays out special dividends every once in a while and has been aggressively increasing its regular quarterly payout, too!

A 200% dividend-growth rate isn’t something you see every day, but BIF can do it because it focuses on stocks whose bargain valuations set them up to outperform over the long haul. It then returns those gains to you in cash.

To get that type of performance, it follows the teachings of the master—Warren Buffett.

In fact, a third of the fund is in Berkshire Hathaway (BRK.A, BRK.B), so owning BIF is like getting Buffett’s portfolio at a big discount, as BIF trades 16.8% below its NAV. That makes it the third-most discounted CEF I track through our CEF Insider service.

Beyond Berkshire, BIF holds companies with strong cash flows that Buffett has also bought: names like JPMorgan (JPM), Cisco (CSCO) and Wells Fargo (WFC). These firms can withstand an economic slowdown because of their strong balance sheets.

Bargain CEF No. 2: A 9% Dividend Disguised as 1%

General American Investors (GAM) also goes after bargain stocks, plus the fund is a bargain itself at a 14.5% discount to NAV. GAM is what I call a “stealth yielder”: while its normal dividend (paid annually) yields about 1%, the fund gives you the bulk of your cash through a big special dividend in December.

These special payouts are a big deal: they gave GAM an annualized yield of more than 9% last year, and a similar yield is likely in November, when the fund will announce its end-of-year payout.

What about the portfolio?

GAM, like BIF, is a value-focused fund, zeroing in on firms with strong cash flows, like Microsoft (MSFT), Alphabet (GOOGL) and Republic Services (RSG). That gives it a mix of high-performing tech stocks and stable cash generators from other sectors. This balanced approach is how GAM has been returned so much cash to shareholders over the years.

Bargain CEF No. 3: A Huge 7.7% Dividend Paid Upfront

The Nuveen Tax-Advantaged Dividend Growth Fund (JTD) takes a similar approach as BIF and GAM, but its “regular” dividend yields an outsized 7.7%, so you don’t have to wait for dividend hikes or special payouts to get your big yield here.

Plus, JTD trades at a 2.3% discount that, while smaller than those of GAM and BIF, is still far too big, given what the fund does.

JTD’s diverse portfolio ranges from Honeywell International (HON) to SAP (SAP), UnitedHealth Group (UNH) and AT&T (T). It also includes some tech, such as Microsoft (MSFT). The fund’s global approach helps it find bargain-priced companies with entrenched client bases and stable revenues.

That’s why JTD has been crushing the market for a decade. And here’s the best part: only a few people know. If you look at the market-price movement for JTD, it seems pretty ho-hum.

However, add in JTD’s big payouts and the chart looks much better!

Not only has JTD soared over the last decade, it has also beaten the index, with a huge chunk of its return in cash, to boot. That means this fund shouldn’t trade at a discount at all—but the fact that it does means it’s certainly worth your attention now.

Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great income ideas, click here for our latest report “Indestructible Income: 5 Bargain Funds with Safe 8.5% Dividends.”

Disclosure: none

I have worked as an equity analyst for a decade, focusing on fundamental analysis of businesses and portfolio allocation strategies. My reports are widely read by analysts and portfolio managers at some of the largest hedge funds and investment banks in the world, with trillions of dollars in assets under management. Michael has been traveling the world since 1999 and has no plans to stop. So far, he’s lived in NYC, Hong Kong, London, Los Angeles, Seoul, Bangkok, Tokyo, and Kuala Lumpur. He received his Ph.D. in 2008 and continues to offer consulting services to institutional investors and ultra high net worth individuals.

Source: 3 Funds To Buy On This Pullback (7.7% Dividends, 200% Payout Growth)

I’ve found three of the highest dividend paying stocks that will not only protect your money but also grow it if the stock market falls. I’m also updating our 2019 stock market challenge portfolio of dividend stocks that is beating the market two-times over. Stocks are falling again and investors are scrambling trying to find safety and growth at the same time. It may seem like an impossible task but I’ve found two sectors and three dividend paying stocks that will do just that. After more than a decade as an investment analyst, I’ve put together a screen to find the best stocks no matter what the market does. I’ll reveal those three stocks I’ve found plus update you on our 2019 dividend stock portfolio, the 11 best dividend stocks I’m investing in this year. These top dividend stocks are not only producing a return twice that of the stock market but they haven’t fallen as much as the S&P 500 on the recent weakness. Not only are these stock picks producing dividend income but also protection from a stock market crash. If you haven’t seen the other videos in our 2019 challenge, I put them all in a playlist linked here. Make sure you check those out because I show you how to invest in dividend stocks and reveal how I picked the best dividend stocks of 2019. https://www.youtube.com/watch?v=pfw_Q… If you want to create your own portfolio of dividend stocks, I recommend M1 Finance. It’s the no-cost investing platform I’m using and some solid features over other investing apps like Robinhood. https://mystockmarketbasics.com/joinm… Being able to reinvest dividends without paying trading fees is important because you want to get that money working for you as fast as possible. Another feature of M1 Finance is that you can set up retirement accounts, not available on Robinhood, which is very important to avoid paying taxes every year on the dividend payouts. I start the video off with an update to the Stock Market Challenge portfolio and those 11 dividend stocks beating the market. I then tell you why the stock market is down lately and those three stock picks that could save your portfolio. 1:09 2019 Dividend Stock Market Challenge Update 2:20 11 Stocks that Pay Dividends AND Beat the Market 2:44 Why is the Stock Market Down 4:01 Best Dividend Stocks for 2019 7:52 How I Pick High-Yield Dividend Stocks 8:23 Highest Dividend Paying Stocks for Safety and Growth SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://peerfinance101.com/FreeMoneyV… Free Webinar – Discover how to create a personal investing plan and beat your goals in less than an hour! I’m revealing the Goals-Based Investing Strategy I developed working private wealth management in this free webinar. Step-by-step to everything you need for this simple, stress-free strategy. Reserve your spot now! https://mystockmarketbasics.com/free-… Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps. #growyourdough

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2019 Tax Refund Chart Can Help You Guess When You’ll Receive Your Money


If anyone tells you that they have the 2019 tax filing season all figured, they’re lying. By all accounts, the upcoming tax season is going to be tricky. Despite a shoestring staff due to the shutdownnew tax forms and new tax rules, the 2019 tax season is still set to open on January 28, 2019. The Internal Revenue Service (IRS) claims that the season will operate as close to normal as possible—including issuing tax refunds. So when are those tax refunds coming……….
Source: https://www.forbes.com/sites/kellyphillipserb/2019/01/21/2019-tax-refund-chart-can-help-you-guess-when-youll-receive-your-money/#6522e9684ba2

When Smart Personal Finance Habits Just Become Stupid

When you start getting your finances in order, it’s exciting. You see the basic concepts and rules of personal finance in action, and, after a while, they start to pay off. This makes it easy to become a personal finance devotee. But even the best financial advice can become counterproductive……..

Source: When Smart Personal Finance Habits Just Become Stupid

Everything I’ve Learned About Personal Finance in 10 Sentences

We’ve featured a lot of tips from The Simple Dollar’s Trent Hamm—from buying in bulkand earning money online to managing a career hiatusand overcoming decision fatigue. Here, he shares his ten most important pieces of financial advice……..

Source: Everything I’ve Learned About Personal Finance in 10 Sentences

How Islamic Finance Could Save the Planet

With mystic peaks, coral reefs, jungles and over 4,000 hours of annual sunlight, Malaysia’s Sabah state is an ideal candidate for clean energy initiatives. But what makes its 50-megawatt solar project, launched in April 2018, special isn’t just its potential to provide electricity to this northern Borneo region. The project is the outcome of funds raised from the world’s first Islamic green bond, with a value of $60 million, unveiled by Malaysia’s Securities Commission in July 2017………..

Source: How Islamic Finance Could Save the Planet

Why You Should Not Risk Your Personal & Financial Data For Attractive Deals Online – zoaib Saleem

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A recent WhatsApp forward claimed that a popular e-commerce website is offering 99% discount on popular gadgets. The message included a link to the website that looks similar to the original e-commerce website. It could be an attempt to steal your personal information by tricking you into believing that you are getting a great deal. This type of fraud is called phishing. This can also happen over emails, where you get an email that seems to be from an authentic source, but in reality it is not.

A recent survey by cyber security firm McAfee India has revealed that a majority of consumers are willing to take risk while shopping online. The survey had 72% respondents (including 44% who said, “Yes, I would” and 28% who said “probably”) admitting they would purchase the same item from one online retailer over another if the item’s price was significantly cheaper, even if they weren’t 100% confident the website was genuine or secure. At the same time, 74% of the respondents said they consider clicking on unfamiliar websites or emails as dangerous, but do their research before making a purchase.

The study that was commissioned by McAfee India in October 2018 surveyed 1,017 adults between the ages of 18 and 55, in India.

Online risks

The survey has highlighted that a big percentage of those buying products online, particularly during festive sales, do not mind if their details like mobile number, email, residential address and bank account details fall in the wrong hands.

Cyber criminals can exploit any information, so users should be cautious about what they share on social media platforms, online forums, on websites or via email. Jens Monrad, senior intelligence analyst at FireEye, a cyber security firm, said, “As we rely more on digital communication, our digital footprint has dramatically expanded during the last five years. From a cyber criminal perspective this means that the information can be used in cyber attacks or to appear more trustworthy (by social engineering) or even exploited in extortion attacks.”

A recent example of how this information can be used, Monrad said, is that unsolicited emails are being sent to users, where the sender claims to have explicit content, stolen from the victim’s computer. In order not to submit the “embarrassing material” to co-workers, family and friends, the victims are being told to pay a fee via cryptocurrencies like Bitcoin.

The survey also found that many users face financial stress due to the purchases they make during the festive season; 77% of the respondents said they feel some stress about spending during online sales. This could further lead these people towards risky behaviour like using shortcuts to get a good deal. In fact, 55% of the respondents said they check their bank or card statements frequently during the festive sales period.

What you should do

You do not need to be a cyber security expert to protect yourself while being online. A lot can be dealt with by just being alert. “Today, using the Internet, either for shopping, for work or browsing, requires that the user employs a degree of scepticism and tries to judge if the content they are viewing or receiving via email is legitimate, coming from a trusted source and potentially can be verified in other places or sources,” Monrad said.

It also involves updating softwares on your devices. Having a cyber security product on your devices that offers malware scanning and protection also helps, he said.

So do not fall for emails and forwards that promise you steep discounts that sound unbelievable. Also, make it a point to report such messages as spam. This could help prevent the spread of such information and keep you and others safe online.

IRS Announces 2019 Tax Rates, Standard Deduction Amounts And More – Kelly Phillips Erb

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The Internal Revenue Service (IRS) has announced the annual inflation adjustments for more than 60 tax provisions for the year 2019, including tax rate schedules, tax tables and cost-of-living adjustments. These are the numbers for the tax year 2019 beginning January 1, 2019. They are not the numbers and tables that you’ll use to prepare your 2018 tax returns in 2019 (you’ll find them here). These are the numbers that you’ll use to prepare your 2019 tax returns in 2020.If you aren’t expecting any significant changes in 2019, you can use the updated numbers to estimate your liability. If you plan to make more money or change your circumstances (i.e., get married, start a business, have a baby), consider adjusting your withholding or tweaking your estimated tax payments………….

Read more: https://www.forbes.com/sites/kellyphillipserb/2018/11/15/irs-announces-2019-tax-rates-standard-deduction-amounts-and-more/#c14542820814

 

 

 

 

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Personal Finance Has Everything and Nothing to Do With Money – Kristin Wong

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On the surface, personal finance seems to be primarily about money: getting rich and optimizing your investments and so on. It’s definitely about all of that stuff, but in a larger, more important way, it has nothing to do with money at all. It’s more about using it to optimize your values and priorities. Learn to Manage Your Money So It Doesn’t Manage You. My dad used to say, “Money isn’t the problem; the lack of it is.” And it’s true: money doesn’t buy you happiness, but not having enough of it can be a pain. And the level of pain varies, depending on your situation…………….

Read more: https://twocents.lifehacker.com/personal-finance-has-everything-and-nothing-to-do-with-1766425829

 

 

 

 

Your kindly Donations would be so effective in order to fulfill our future research and endeavors – Thank you

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