Im going to hand you a dead-simple strategy that perfectly lines you up for dividends growing 150%or moreplus safe current yields of 6.5% and higher.
The kicker? This quick 3-step plan positions you for fast 70% upside, tooespecially when stocks dive.
And if stocks soar? Youll very likely outrun the market, too!
What Im going to show you really is the closest thing to a heads you win, tails you win scenario Ive ever seen in investing.
More on this easy move (and how it drove a huge 70% gain for folks who pulled this same trick exactly one year ago) shortly.
History Doesnt Repeat, But It Does Rhyme
First, if youre like me, youre getting a sense of déjà vu these days: the sinking feeling that December 2019 could be a replay of December 2018.
Think back 12 months: stocks were in a death spiral till Christmas, when they finally found their footing:
December 2018: Stocks Cough Up a Lump of Coal
We all know whats happened since: the S&P 500 rebounded hard, soaring 23%.
Heres where our déjà vu comes full circle, because while history doesnt repeat itself, it does often rhyme. And as I wrote on November 19, I see plenty of good signs for stocks in 2020, just as I did in December 2019.
Two reasons why Im optimistic:
I know you can see where Im going here, because if these two powerful signals are right again, any December pullback would be a terrific buying opportunityjust like December 2018 was.
So what should we be buying?
If youve read my Contrarian Outlook articles, what I say next wont surprise you: stocks with dividends that arent only growing but accelerating. To see how this pays off, lets go back to the best proving ground we have: last Decembers wipeout.
This December 2018 Buy Call Soared 70%
At the dark depths of the 2018 troughon December 21, to be exactI rolled out two dividend-growth picks for members of my Hidden Yields service.
This was unprecedented: I usually stick with my single best pick every month. But the selloff had served up such a big opportunity that I couldnt help myselfespecially when there were two fantastic dividend growers begging for our cash!
The first: NRC Health (NRC) a healthcare-information provider that charges hundreds of thousands in recurring recession-proof subscription fees to its cash-rich healthcare providers!
Best of all, this nimble midcap stocktrading at an absurdly low 16-times earnings when I recommended ithands most of its profits to shareholders, having nearly tripled its quarterly payout in the preceding five years. Management was so flush, it even pumped out big special dividends on the regular!
Quarterlies, Specials and RaisesOh My!
Twelve months on, we got more than we could have imagined from NRC: 67% in gains and dividendsmore than double the S&P 500s return.
Dividend Growth Powers NRC
And then there was our second winning call from last December
December 2019 Could Easily Serve Up Another Winner Like This
In that same Hidden Yields issue, I pounded the table on NexStar Media Group (NXST), a mid-cap owner of local-TV stations, websites and mobile apps. It was cheaper than NRC, at a ridiculous 6.5-times earnings, because most people think local news is dead!
But these folks missed the steady cash NexStar collects from other broadcasters for it contentand its fast-growing digital revenue, too. They also missed NexStars explosive dividend growth: up 150% in the preceding five years!
NexStars Accelerating Dividend …
A year later, and wed wrung 45% in gains and dividends out of the stock, as its price raced to catch up to its soaring payout growth.
Yanks Its Share Price Up
Look, Im not showing you these examples to revisit past gloriesonly to show you the type of gains and dividends we could have in the bag 12 months from now, especially if we see a December massacre like last years.
And if you look for stocks with the same triggers NXST and NRC boasted last Decembersoaring dividends, share prices lagging their payout growth and unusually low valuations, youll give yourself a very good shot at outrunning the market in 2020, and for years to come.
70% Upside Is Just the Start
The best part of investing this way is how it quickly multiplies your income stream. And it does so in a way that most folks dont even think about!
To see what I mean, consider self-storage REIT National Storage Affiliates (NSA), which sports a current yield of 3.6%.
I knowthat doesnt sound terribly exciting, but focusing on the current yield totally misses the point of what Im going to show you here.
First, as you can see below, NSAs dividend has closely matched the 68% rise in its share price since I recommended it in Hidden Yields a bit more than three years ago, in August 2016, proving that a surging payout is a critical driver of share prices:
NSAs Share Price Tracks Its Dividend
That kind of growth is terrific, of course, but its on the dividend side that it really packs a punch, because readers who followed my 2016 recommendation arent getting a 3.6% payouttheyre yielding a hefty 6.5% on their original buy, thanks to the 50% jump in NSAs dividend.
That cash stream has ignited the stocks total return, bringing it up to 98% (on a sleepy self-storage REIT, no less!) in just over three years.
My Top 7 Dividend Doublers for 2020 (bull or bear)
Im not going to spend this whole column rehashing past callsso lets look to your futureand dive into the 7 dividend-growth picks I have for you now.
These 7 stout dividend plays are all sitting on cash piles they cant send out the door fast enough! And just like our 3 past Hidden Yields recommendations above, these 7 fresh buys are cheap now, with share prices badly trailing their surging payouts.
Its only a matter of time before they race to catch up!
The Bottom Line
Heres the upshot: all 7 of these new picks should be on any dividend investors radar no matter what happens in December. But if we do get a December 2018 replay this month, their upside will be even bigger.
As of now, Ive got each of these 7 solid dividend growers pegged to return 20% in dividends and gains, year in and year out, on average. Thats enough to double your nest egg every four years!
And just like the lucky folks who bought NSA three years ago, the yield on your initial buy will soar, too: to 6%, 7.5% and eventually over 10%! Its the safest way to build a high income stream there is in the stock marketguaranteed.
Dont be left behind as other investors grab these 7 stocks and start building their income streams (and account balances!). Discover everything you need to know about all 7 of these dividend doublers now: names, tickers, best-buy prices, full dividend histories (and my payout predictions)literally every bit of research I have.