Market Mavens – Stock Research Made Simple

How to Be An Elite Dividend Investor

Successful dividend investing is simple, though not necessarily easy. There are nuances which trip up many investors (including most professionals!) These twists and turns create “yield alpha” opportunities for contrarian-minded income investors like us. If everyone else in the market were perfectly grounded and calculated, there would be no chance for us to make above-average returns. After all, the 11.3% and 17.5% annualized returns that my Contrarian Income Report and Hidden Yields readers are earning would be snapped up in a perfectly efficient market. Thanks to these inefficiencies, we are able to bank big yields and price returns in Dividend Land. Ready to retire on dividends? Follow these seven steps and we’ll do it together. Let’s start with an obvious yet underappreciated rule for income investors. Step 1: Count Your Dividends Since we focus on high yield, most of our returns come from the “yield” component of stocks. So let’s not forget about them when figuring out our returns! For example, we added this preferred stock fund to our portfolio in October 2015 and its price-only returns look quite pedestrian: Don’t Fixate on Price Alone… We’ve gained 51%, while the price is up only 13%. The majority of our fat 51% gains have been delivered via cash dividends. So let’s

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