Why Market-Beating, Yet Reliable, Dividends are an Investor's Best Friend

Some investors like to fly close to the sun, loading up on red-hot “FAANG” stocks and riding them until they implode.

Others like to dig around in the deepest, darkest market sludge, buying beaten down names they hope can find their footing again.

Me? I take a different approach. I think there’s absolutely, positively nothing better than finding stocks that pay market-beating … yet reliable … dividends — and watching as those stocks deliver top-notch returns year-in and year-out.

In fact, I think they’re an investor’s best friend — especially in today’s world of still-low (but rising) interest rates.

The proof is in the research, research based on decades of market data. Stocks historically yield an average of around 7.9%. But roughly 5 percentage points of that return historically stems from dividends.

Another 0.8 percentage points comes from real growth in dividends. So if you ignore dividends when picking stocks, you’re leaving more than 73% of your potential returns off the table!

Here’s another way of looking at things, courtesy of Heartland Advisors. Let’s say you started in 1928 … right BEFORE the market crash … with $1 million.

Then let’s say you invested that money in a group of stocks that pay relatively high dividends (but not those with the absolute highest yields, because those yields are often artificially inflated by companies who can’t maintain their payouts for long), and kept that money working for you through last year.

Even taking into account the great crash of 1929 … the bear market of the 1970s … and the Great Recession of 2007-2009 … you could have amassed a fortune of $17.6 billion.

Had you invested in stocks with no dividends, however, you’d have just $1.3 billion. That may still be a lot of cash, but it’s 92.6% less than you could have banked!

Why should you settle for that? Answer: You shouldn’t! And the good news is, you don’t have to any more.

That’s because I just launched a newsletter entirely focused on ETFs and stocks that pay market-beating, yet reliable, dividends.

It’s called High Yield Investing and it’s tailor-made to help you profit in today’s investing environment.

My first batch of picks included a leading chipmaker whose profits just surged 29%, and who has grown its dividend at an annualized rate of almost 17% in the last three years … a travel and leisure company that just boosted its payout by 14%, and whose shares have been cruising higher for months … and an ETF that’s spinning off a yield of more than 8%, courtesy of its high-payout component stocks.

Every single one of these investments meets strict criteria for dividend yield, dividend growth, and dividend sustainability, not to mention they sport solid Weiss Ratings.

Best of all, it’s not too late for you to get on board with them if you haven’t already. All you need to do is click here or give us a call at 877-934-7778.

You can also use the High-Yielding ETFs screener I created for you at the Weiss Ratings website to find some of the ETFs that offer the best historical and forward yields.

Of course, I haven’t done the additional research and work I do on every single investment that even has a chance of making it into my newsletter. But it is a good place to start if you’d like to get some investing ideas.

Bottom line: Rather than chase the highest of the high-flyers … or dig through the dingiest dregs … to find investment success, focus on what has worked for decades.

That’s exactly what I’m doing in High Yield Investing, and I’d love for you to join me.

Until next time,

Mike