Dividends

  • 25 Sep
    Sunday Edition: Why Assignments From Put Sales Enhance Income Generation

    Sunday Edition: Why Assignments From Put Sales Enhance Income Generation

    I have wanted to write this for quite some time because it needs to be said. I’m sure I will piss off a few people but I can live with that if a few others grasp the wealth building concept I’m trying to make.

    A little over two years ago we launched our Rebel Income newsletter with a focus on income generation by selling put options, collecting dividends, and writing covered calls.

    The impetus behind launching this service was the current retirement crisis where most retirees have severely underfunded retirement accounts—the average account balance of those between the age of 55-64 is $104,000—and we live in a world of negative interest rates. More →

  • 18 Sep
    Sunday Edition: Stock Dividends – IRS-Friendly Sacred Cow, or Value Analysis Tool?

    Sunday Edition: Stock Dividends – IRS-Friendly Sacred Cow, or Value Analysis Tool?

    In today’s Sunday Edition, Thomas Moore corrects three major fallacies which so many investors hold true when it comes to investing in dividend paying stocks.

    As Thomas illustrates, investors who succumb to these fallacies might only earn half the return that other more informed value investors might generate. More →

  • 14 Sep
    Diversify Like The Big Boys Do

    Diversify Like The Big Boys Do

    • Temporal diversification diversifies your portfolio through time by buying only the assets that are cheap at the moment and avoiding the ones in a bubble.
    • By buying in cycle troughs you enjoy high-dividend yields that allow you to buy other assets that are in temporal distress.
    • This high yield lowers the need to sell and lowers your tax bill.

    Introduction

    Today we’ll introduce you to a new concept—“temporal diversification,” a term that has begun to gain traction, especially in academic circles—that isn’t yet common knowledge but is already being used by the best investors. Using the example of Berkshire Hathaway, we’ll provide an overview of the concept of temporal diversification and will provide some ideas for increasing your returns by diversifying your portfolio not just for the current moment, but for your whole investing life. More →

  • 05 Sep
    Do Your Future Returns A Favor

    Do Your Future Returns A Favor

    • S&P 500 companies are not only returning more cash to shareholders than their earnings, but also more than their cash flows.
    • The trend is resembling the one prior to the financial crisis.
    • Not all stocks are unsustainable with their cash returns, so check your portfolio.

    Introduction

    A common piece of financial advice is not to spend more than you earn as it will eventually put you in trouble. Well, this is exactly what corporate managers are doing. Through dividends and buybacks they are spending more than they are earning. If the common advice is of any value it should be trouble ahead for the stocks that are doing so.

    In this article we are going to analyze the situation, look at the real short and long term risks and conclude in fashion. More →

  • 28 Aug
    Sunday Edition: The Misunderstood Role of Stock Dividends

    Sunday Edition: The Misunderstood Role of Stock Dividends

    In Today’s reprint of Thomas’ Rebel Income newsletter ($1,164 annual subscription), he discusses the often overlooked but incredibly important role dividends play in your overall returns.  

    As you’ll see, over the last 25 years, $1 invested in 1990 has grown to almost $10 today including dividends. Whereas that same $1 without dividends has only grown to $6. That’s a 40% difference in overall wealth creation.

    In the Rebel Income picks, Thomas always looks to sell put options on fundamentally solid companies that pay strong dividends, since dividends are the single best indicator of true company strength. More →

  • 20 Jun
    Dividend Aristocrats: Should You Buy?

    Dividend Aristocrats: Should You Buy?

    • Stock picking amid dividend aristocrats should give even better results.
    • Dividend aristocrats come from recession-proof industry sectors.
    • PE ratios vary from 11 to 155 and dividend yields from 0.4% to 6.5%.

    Introduction

    A company receives the title of ‘dividend aristocrat’ when it has continuously increased its dividend for the last 25 or more years. This means that the company manages to go through recessions and market shocks with a growing, healthy cash flow that enables constant dividend increases. More →

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