This year is shaping up to be a good one for those using a Total Yield strategy. For those who aren’t familiar, it’s a simple strategy I’ve been talking about for the past few weeks. I’ve been telling income investors that if they’re investing in just any company that pays a dividend, they may be leaving a lot of money on the table. That’s why instead of simply focusing on companies with high dividend yields, the Total Yield strategy looks at companies that reward shareholders with two “extra” payment methods in addition to dividends — ones that add rocket fuel… Read More

This year is shaping up to be a good one for those using a Total Yield strategy. For those who aren’t familiar, it’s a simple strategy I’ve been talking about for the past few weeks. I’ve been telling income investors that if they’re investing in just any company that pays a dividend, they may be leaving a lot of money on the table. That’s why instead of simply focusing on companies with high dividend yields, the Total Yield strategy looks at companies that reward shareholders with two “extra” payment methods in addition to dividends — ones that add rocket fuel to a dividend stock’s potential returns. (I talked about each of these “extra” payment methods in detail here and here.) #-ad_banner-#It’s simple. Investing in dividend-paying companies that give out these two “extra” payments over ones that don’t can mean the difference between merely keeping pace with the market and beating it. Here’s the proof: from 1982 to 2011, the Total Yield strategy returned 15.04% annualized, handily outperforming the S&P 500, which returned 10.96% annualized over the same period. Extensive back-tested research has shown that by using the Total Yield strategy — choosing stocks that pay dividends, buy back shares of… Read More

When you go to the mall to buy a pack of batteries from RadioShack (NYSE: RSH), neighboring shops hope you’ll pop in for sunglasses, T-shirts or baked cookies. That was the notion that inspired Victor Gruen, who designed the first fully enclosed shopping mall in the 1950s. (The Southdale Mall, in Edina, Minnesota, is still in use today.) #-ad_banner-#​Gruen understood that by grouping shops together in one central place, each store would benefit from what’s known as a network effect. Today, that network is unraveling, potentially threatening the entire shopping mall concept.  RadioShack, for example, is in the… Read More

When you go to the mall to buy a pack of batteries from RadioShack (NYSE: RSH), neighboring shops hope you’ll pop in for sunglasses, T-shirts or baked cookies. That was the notion that inspired Victor Gruen, who designed the first fully enclosed shopping mall in the 1950s. (The Southdale Mall, in Edina, Minnesota, is still in use today.) #-ad_banner-#​Gruen understood that by grouping shops together in one central place, each store would benefit from what’s known as a network effect. Today, that network is unraveling, potentially threatening the entire shopping mall concept.  RadioShack, for example, is in the process of closing 1,000 stores, many of them in malls. Countless impulse buyers, in search of the company’s products, have one less reason to go to the mall, and as a result, neighboring retailers will see reduced foot traffic.  We’re not just talking about the loss of a store here and there. According to a recent tally by USA Today, thousands of stores are set to close over the next few years. The important names in this group are Barnes & Noble (NYSE: BKS), J.C. Penney (NYSE: JCP), Sears Holdings (Nasdaq: SHLD) and Toys ‘R Us. These are known… Read More

The identity of the sector in the S&P 500 with the fastest dividend growth may come as a surprise to a lot of investors…  #-ad_banner-#Information systems.  Dividends were once anathema to the tech industry, as the standard was to plow back profits and cash flow back into R&D. Credit Intel (Nasdaq: INTC) and Microsoft (Nasdaq: MSFT), two of the biggest tech names of the time, for turning the tide on dividend payments. Intel was actually well ahead of the game, starting up its dividend payout in 1993, while “Mr. Softy” initiated its dividend in 2003.  Where are we… Read More

The identity of the sector in the S&P 500 with the fastest dividend growth may come as a surprise to a lot of investors…  #-ad_banner-#Information systems.  Dividends were once anathema to the tech industry, as the standard was to plow back profits and cash flow back into R&D. Credit Intel (Nasdaq: INTC) and Microsoft (Nasdaq: MSFT), two of the biggest tech names of the time, for turning the tide on dividend payments. Intel was actually well ahead of the game, starting up its dividend payout in 1993, while “Mr. Softy” initiated its dividend in 2003.  Where are we today? The 32 dividend-paying IT stocks in the S&P 500 in 2010 yielded 0.94%. That figure grew to 1.13% among the index’s 44 dividend payers at the end of 2013. Of course, Apple (Nasdaq: AAPL), the second-biggest payer in terms of dollars (after Exxon Mobil (NYSE: XOM)), helped boost the number, but others like Cisco (Nasdaq: CSCO) are helping to move the needle, too.  Microsoft and Intel may be the current rock stars for long-term tech dividend investors, but what about the rising stars of the industry? I’m looking for investments you can buy and hold… Read More

Finding dependable, double-digit yields in this market isn’t easy… The Federal Reserve has pushed interest rates to all-time lows. Bonds are barely beating inflation, and the yields on dividend stocks are awful… the S&P 500 only pays 2.2%. To make matters worse, stocks are within pennies of their all-time highs. So even if you are lucky enough to find a company with a decent payout, chances are you’ll be taking a lot of risk. But that doesn’t mean income investors have to throw in the towel. There are plenty of ways to earn dependable high-yields in this market… you just… Read More

Finding dependable, double-digit yields in this market isn’t easy… The Federal Reserve has pushed interest rates to all-time lows. Bonds are barely beating inflation, and the yields on dividend stocks are awful… the S&P 500 only pays 2.2%. To make matters worse, stocks are within pennies of their all-time highs. So even if you are lucky enough to find a company with a decent payout, chances are you’ll be taking a lot of risk. But that doesn’t mean income investors have to throw in the towel. There are plenty of ways to earn dependable high-yields in this market… you just have to get creative. #-ad_banner-# For example, ProfitableTrading’s Amber Hestla has been using covered calls to earn an average annual yield of 38% in her Maximum Income portfolio since she launched her service in January. I know what you’re thinking. You probably saw the words covered calls and 38% annual yields and thought “damn, there must be a lot of risk involved with this strategy… right?” Wrong. In fact, using covered calls is arguably the safest — if not the only — way to meaningfully boost your income stream in today’s market. It’s a strategy I’d… Read More

It was the turn of the millennium when I boarded a train headed to a place that had just become its own country seven years before. I would be spending Y2K in the U.S. embassy overlooking the city of Prague in the Czech Republic. #-ad_banner-#The country was young and not well known, but its growth potential would turn out to be tremendous.  I spent time touring the incredible city. I walked over the Charles Bridge — the most important connection to Prague Castle and the city’s old town — and admired its architecture and history.  The most impressive thing was… Read More

It was the turn of the millennium when I boarded a train headed to a place that had just become its own country seven years before. I would be spending Y2K in the U.S. embassy overlooking the city of Prague in the Czech Republic. #-ad_banner-#The country was young and not well known, but its growth potential would turn out to be tremendous.  I spent time touring the incredible city. I walked over the Charles Bridge — the most important connection to Prague Castle and the city’s old town — and admired its architecture and history.  The most impressive thing was the surprising lack of tourists. It was like I had the city all to myself. Most people still called it Czechoslovakia. At the time, Prague was Eastern Europe’s hidden gem.  Fast-forward six years to when I returned… and it was a completely different city. The Charles Bridge was completely packed, the line to enter Prague Castle was a 30-minute wait, and the locals now spoke German and English on top of their native tongue. Prague was no longer Eastern Europe’s secret. It had developed into a vibrant city booming with people from all over the world. The Czech Republic had… Read More

You’ve heard it from Warren Buffett, your banker, and maybe even your bartender… Invest in real estate. #-ad_banner-#But before you take out a mortgage to buy your dream home (or spend your next paycheck on a fixer-upper in Detroit), right now may not be the best time.  Even though mortgage rates remain near all-time lows, there’s a shadow over the U.S. housing recovery — and even the Federal Reserve may be unable to do much about it. In the past, it wasn’t uncommon for new college… Read More

You’ve heard it from Warren Buffett, your banker, and maybe even your bartender… Invest in real estate. #-ad_banner-#But before you take out a mortgage to buy your dream home (or spend your next paycheck on a fixer-upper in Detroit), right now may not be the best time.  Even though mortgage rates remain near all-time lows, there’s a shadow over the U.S. housing recovery — and even the Federal Reserve may be unable to do much about it. In the past, it wasn’t uncommon for new college graduates to be able to buy a home soon after graduating. Although the next generation of potential homebuyers is finding it easier to obtain a job as unemployment rates drop, they’re expected to be saddled with crushing loads of student debt for years to come. In addition, nearly a third of the owners of the most affordable homes in the U.S. are underwater, meaning they owe more than their properties are worth. That means fewer low-priced homes for first-time homebuyers to choose from.  So what happens when you have a booming economy full of young would-be… Read More

When companies are looking to spin off a division to shareholders, or merely looking to incorporate a new division, they will often call it “Newco.” #-ad_banner-#It’s not an imaginative name for “new company,” but it serves as a temporary placeholder for legal purposes until a better name can be found. These days, many companies are shifting to a new business model called “Yieldco.” Carving out a slice of a business to deliver a steady and growing dividend yield is suddenly becoming very popular. In just the past year, Yieldcos such as NRG Yield (NYSE: NYLD), and Pattern Energy (Nasdaq: PEGI),… Read More

When companies are looking to spin off a division to shareholders, or merely looking to incorporate a new division, they will often call it “Newco.” #-ad_banner-#It’s not an imaginative name for “new company,” but it serves as a temporary placeholder for legal purposes until a better name can be found. These days, many companies are shifting to a new business model called “Yieldco.” Carving out a slice of a business to deliver a steady and growing dividend yield is suddenly becoming very popular. In just the past year, Yieldcos such as NRG Yield (NYSE: NYLD), and Pattern Energy (Nasdaq: PEGI), have begun trading, and the early gains have been impressive. NRG Yield is up 50% since its July launch, and Pattern Energy is up 30% since its debut last September. Their yields have been pushed down 3% to 4% as the share prices have risen, but they were fairly robust when these Yieldcos started trading. So what exactly is a Yieldco?  To understand that question, it helps to examine NRG Energy Co. (NYSE: NRG), which spawned NYLD. NRG is a $14 billion (in revenue) independent power producer that owns nearly 90 fossil fuel and nuclear power plants, along with a growing… Read More

If you’re hunting for a steady growth stock that offers a strong technical breakout from a multi-month base, turn your attention to the United States’ northern neighbor — Canada. #-ad_banner-#With a GDP of $1.8 trillion, Canada is one of the world’s strongest economies. Its banks are the country’s economic backbone. In fact, the World Economic Forum has ranked Canadian banks the soundest in the world — for the past six years and counting. Of the five major Canadian banks, my favorite is the Royal Bank of Canada (NYSE: RY) due to its… Read More

If you’re hunting for a steady growth stock that offers a strong technical breakout from a multi-month base, turn your attention to the United States’ northern neighbor — Canada. #-ad_banner-#With a GDP of $1.8 trillion, Canada is one of the world’s strongest economies. Its banks are the country’s economic backbone. In fact, the World Economic Forum has ranked Canadian banks the soundest in the world — for the past six years and counting. Of the five major Canadian banks, my favorite is the Royal Bank of Canada (NYSE: RY) due to its recent chart breakout, solid fundamental outlook, attractive valuation and strong dividend yield. The bank, often referred to as RBC, is Canada’s largest financial institution and one of the largest banks in the world based on deposits, revenue and market cap. It offers personal and commercial banking services, wealth management, insurance, investor services and capital markets products. Gains from its consumer banking and wealth management divisions are driving growth. The bank recently reported better-than-expected second-quarter results. Net income rose 15% from the same quarter last year, to $2.2 billion (Canadian). And earnings came in at $1.47 per share, beating the consensus… Read More

The story of Medallion Financial (Nasdaq: TAXI) is about as plucky and all-American as you can get.  #-ad_banner-#With its roots in a fleet of New York City cabs built from one in 1937 to 500 by a Polish immigrant, Leon Murstein, the company wanted to sell some of its cab fleet in 1979. In NYC, the sale of a taxicab basically involves selling and transferring the license of medallion the city issues to allow operation.  At the time, no banks would finance that type of transaction. So, the company was forced, out… Read More

The story of Medallion Financial (Nasdaq: TAXI) is about as plucky and all-American as you can get.  #-ad_banner-#With its roots in a fleet of New York City cabs built from one in 1937 to 500 by a Polish immigrant, Leon Murstein, the company wanted to sell some of its cab fleet in 1979. In NYC, the sale of a taxicab basically involves selling and transferring the license of medallion the city issues to allow operation.  At the time, no banks would finance that type of transaction. So, the company was forced, out of necessity, to hold the paper on the sale.  That turned out to be a great decision. Since that necessary financing transaction in 1979, Medallion — which is still run by the Murstein family — has originated over $2.5 billion in taxi medallion loans with zero gross losses. What’s the secret to success? Specialization. “In Niches There Are Riches” This is actually the company’s motto — and it’s that “stick to your knitting” philosophy that’s driven Medallion’s success.  Now designated as a business development company, Medallion differs from most BDCs in that its core loans, backed by taxicab medallions, have… Read More

Although there’s no right or wrong way to spend your retirement, most people envision a relaxing period of spending time with family, travelling, picking up a new hobby, or even starting a new side venture. #-ad_banner-#Not too many picture themselves managing $29 billion worth of family and charitable funds… especially at the age of 83. While he hasn’t retired in the traditional sense, George Soros said in 2011 that he’d be returning funds to investors. He hung up his client asset management hat, opting to keep a distant eye over operations as chairman of Soros… Read More

Although there’s no right or wrong way to spend your retirement, most people envision a relaxing period of spending time with family, travelling, picking up a new hobby, or even starting a new side venture. #-ad_banner-#Not too many picture themselves managing $29 billion worth of family and charitable funds… especially at the age of 83. While he hasn’t retired in the traditional sense, George Soros said in 2011 that he’d be returning funds to investors. He hung up his client asset management hat, opting to keep a distant eye over operations as chairman of Soros Fund Management. But fortunately for us, his company is still required to submit Form 13F filings to the SEC, giving us a glimpse at how the legendary investor (as well as his chief investment officer and their team of analysts) interpret this changing market landscape.  Soros’ latest 13F disclosure is ripe with information, but I’ve decided to first focus on it from a retirement-friendly income perspective. That said, let’s take a look at some of the highest-yielding stocks that Soros Fund Management piled into in the first quarter of 2014. North Atlantic Drilling (NYSE: NADL )​ As its name suggests,… Read More