There’s nothing quite like the feeling of collecting a dividend distribution. It’s almost like a paycheck – but without any of the work. And if you have the option of reinvesting those proceeds into more shares, which in turn yield their own dividends, which then purchase more shares… even better. You’ve probably seen some of the charts and graphs illustrating the long-term wealth-creating power of dividends (in fact, I shared one recently). But let me put this in another way to really drive the point home… The S&P 500 has given investors a 10.2% average annual return since 1965. Read More

There’s nothing quite like the feeling of collecting a dividend distribution. It’s almost like a paycheck – but without any of the work. And if you have the option of reinvesting those proceeds into more shares, which in turn yield their own dividends, which then purchase more shares… even better. You’ve probably seen some of the charts and graphs illustrating the long-term wealth-creating power of dividends (in fact, I shared one recently). But let me put this in another way to really drive the point home… The S&P 500 has given investors a 10.2% average annual return since 1965. Nothing wrong with that. But Warren Buffett has famously chalked up 20% annualized gains at Berkshire Hathaway over the same period, for a market-crushing cumulative return of 2,810,526%. In the process turning a modest $1,000 stake into $30+ million today. Dividends have played a major role. It’s no coincidence that Buffett’s favorite long-term holdings are all dividend payers. I’m talking about anchor positions in timeless businesses like American Express (NYSE: AMEX), Coca-Cola (NYSE: KO), Bank of America (NYSE: BAC), and Verizon Communications (NYSE: VZ). With growing income streams from these and other holdings, Berkshire Hathaway will pocket more than $5… Read More

Covid triggered changes that will influence consumer behavior and spending for years to come. Here's a positive one we can profit from... Read More

Covid triggered changes that will influence consumer behavior and spending for years to come. Here's a positive one we can profit from... Read More

It's time for our check-in on companies that are likely to raise dividends in the next month. Read on for details... Read More

It's time for our check-in on companies that are likely to raise dividends in the next month. Read on for details... Read More

It's one of the best-performing real estate businesses on the planet. And this stock has been the clear leader of the pack... Read More

It's one of the best-performing real estate businesses on the planet. And this stock has been the clear leader of the pack... Read More

Roughly 6 million homes will change hands this year, not counting new construction. And just about all of these transactions will need this... Read More

Roughly 6 million homes will change hands this year, not counting new construction. And just about all of these transactions will need this... Read More

This company owns four dominant quick-serve brand names. And with value and income names coming back into favor, it's due for a rally... Read More

This company owns four dominant quick-serve brand names. And with value and income names coming back into favor, it's due for a rally... Read More

It's time for our check-in on companies that are likely to raise dividends in the next month. Read on for details... Read More

It's time for our check-in on companies that are likely to raise dividends in the next month. Read on for details... Read More

In an earlier article, I discussed an emerging trend that should make income investors take notice. In short, it has to do with the way companies pay dividends — particularly in the resources and energy sectors. It’s called a variable return of capital (VROC), and it works like it sounds. Rather than peg their dividend at a fixed rate and praying that the price of the commodity the company is reliant on producing doesn’t crater, more companies are moving to a payment based on operating results and cash flow. As I explained earlier, dividend policies like this are… Read More

In an earlier article, I discussed an emerging trend that should make income investors take notice. In short, it has to do with the way companies pay dividends — particularly in the resources and energy sectors. It’s called a variable return of capital (VROC), and it works like it sounds. Rather than peg their dividend at a fixed rate and praying that the price of the commodity the company is reliant on producing doesn’t crater, more companies are moving to a payment based on operating results and cash flow. As I explained earlier, dividend policies like this are common in Europe, but haven’t really caught on here in the U.S. until recently. Sure, it’s nice to know exactly what kind of payment you’re going to get every 90 days. But sometimes the business cycle has other plans — especially the energy sector (or any other commodity for that matter). Fortunately, one of our big winners over at High-Yield Investing recently implemented a policy that strikes a balance between the two approaches. The result: investors will enjoy a reliable, stable dividend while being rewarded in up cycles with an extra bonus. What’s not to like about that? The… Read More

Most of us are used to getting paid dividends at a fixed rate. But some companies in cyclical businesses are taking a different approach... Read More

Most of us are used to getting paid dividends at a fixed rate. But some companies in cyclical businesses are taking a different approach... Read More

One of my favorite income machines has just acquired one of its smaller cross-town neighbors. It’s a master limited partnership (MLP) that’s grown payouts year after year, not to mention serious long-term capital gains. For those who missed it, I made the case for why income-hungry investors should take a serious look at MLPs in 2022 in this article. It’s one of the few areas of the market that still offer high yields – not to mention serious upside. The thing is, the market seems to be completely uninterested in this (and other) MLPs right now. You might even… Read More

One of my favorite income machines has just acquired one of its smaller cross-town neighbors. It’s a master limited partnership (MLP) that’s grown payouts year after year, not to mention serious long-term capital gains. For those who missed it, I made the case for why income-hungry investors should take a serious look at MLPs in 2022 in this article. It’s one of the few areas of the market that still offer high yields – not to mention serious upside. The thing is, the market seems to be completely uninterested in this (and other) MLPs right now. You might even think the days of growing payouts are in the rearview mirror. But thanks to this new acquisition, the prospects for even higher dividends in the future are looking brighter than ever. I’m talking about Enterprise Products Partners (NYSE: EPD). EPD is one of the first names that come to mind when you think of the MLP space. Of course, when you own 50,000 miles of pipelines (enough to circle the planet twice) just about all other rivals will look small in comparison. These vital conduits transport crude oil, natural gas, petrochemicals, and refined products such as gasoline. EPD’s network serves… Read More