Consumer staples are boring and reliable. And they typically pay generous dividends.

But generous has nothing on these fantastic yields from 5.2% to 11.3%!

Historically, staples have held up better than the broader market during downturns. Lately, however, that hasn’t happened:

Consumer Staples: A Rare Failure to Protect

Uncertainty fueled a staples rally across the first couple months of the year. But when the war in Iran triggered a near-correction in the S&P 500, the sector didn’t just take the same elevator down—they found a faster one.

The rub? The war sent inflation expectations through the roof. Defensive though staples might be, when consumers really start pinching pennies, they shift away from the pricey brand names that anchor this sector and into private-label products from smaller public and even private companies.… Read more

The year isn’t even four months old, and we’ve already been hit with three events that would normally send markets tumbling:

• The Iran conflict.
• The hit to software stocks, after AI raised concerns about their business model.
• The private-credit collapse.

We’re going to zero in on that third point today, because while the Iran situation is an ongoing tragedy, it will be resolved at some point. When it does, the relief rally will likely be significant.

The software story is similar. Over time, I see these stocks as winners in the AI race, not victims.

But the private-credit tale is different, because what it’s actually telling us about the economy—that it’s stable and growing—is the exact opposite of what most people think it’s saying.… Read more

Monthly dividends and panic readings? Now that’s a path to profits.

Two weeks ago, my Contrarian Income Report readers and I were staring at a recent decline in DoubleLine Yield Opportunities Fund (DLY). Buy more, hold or sell? DLY owners were understandably jumpy. Something must be wrong with the bond portfolio itself, right? Why else would it be down?

The bond fund had just registered its deepest panic reading—which I will share with you in a moment—since we’ve owned it. My contrarian gut said buy. Always buy the hysteria. But, I admit, my taste isn’t for everyone.

(“Dad, why are you buying sardines with tomato sauce?”… Read more

I just took a glance at the Fed futures market and, frankly, couldn’t believe what I saw.

These traders don’t see a rate cut from the Fed until July of 2027. And even then, only a bare majority do:

Source: CME Group

C’mon man! That’s 15 months from now.

I know predictions are tough, but from where I sit, this one seems awfully hard to justify.

For one, Trump administration pick Kevin Warsh is likely to be installed as Fed chair long before then, with Jay Powell’s term officially up next month. Sure, Warsh has been hawkish in the past, but over the last few months, he’s been in line with the administration’s wish for lower borrowing costs.… Read more

Wall Street and the press have it all wrong on the US economy. Here’s the truth:

It’s stable—and growing.

I know. Boring, right? Maybe to most people. But not to us!

The narrative put forth by the press and punditry—that inequality is rampant and getting worse—lends itself to much more compelling headlines (which is why we’re not hearing much about it).

Worries around this inequality—namely that it will cause more political instability and pile risk on to the economy as a whole—are part of what’s been weighing on stocks lately. That and concerns about the Iran War, the direction of interest rates, unpredictable trade policy and others (it’s a long list!).… Read more

In three charts, we’ll show why monthly dividends are superior to even blue-chip payers. Plus, we’ll discuss five monthlies that yield between 9.7% and 13.5%.

First, let’s talk about monthly dividend timing. Check out what our monthly cash flow looks like if we invest in five of the market’s largest dividend-paying companies. These are five of the S&P 500’s biggest holdings, and we can find them in just about every major large-cap fund:

Source: Income Calendar

The good news? Every three months, we cash a dividend check.

The bad news? That harvest is followed by two months of crickets.

Let’s compare that dividend calendar with the projections for my five-pack of monthly payers.… Read more

AI is making real money—I’m talking about $30 billion in revenue for just one leading AI firm.

On April 6, this company, Anthropic, maker of the Claude chatbot, reported annualized revenue of $30 billion.

That’s a stunning figure, and we’re going to benefit from it—and collect an 8.3% dividend while we do. Our vehicle? One of our favorite tech-focused closed-end funds (CEFs).

What’s more, this fund is a bargain, trading at an 11% discount to net asset value (NAV, or the value of its underlying portfolio) as I write this.

Let’s back up a sec.

That $30-billion figure is surprising enough, but the growth rate is equally stunning: up more than 200% from just last year:

Source: CEF Insider

Put another way, Anthropic has calculated annualized revenue on par with the total revenue posted by Clorox (CLX), Ralph Lauren (RL), Church & Dwight (CHD), Domino’s Pizza (DPZ) and Hasbro (HAS) combined.… Read more

“Adrian, it’s going to Jack. But you have to act like you have the ball.”

My star adjusted his mouthguard and nodded, still breathing heavily.

“Everyone’s gonna follow you.”

I looked around our huddle. Adrian had just motored for a 95-yard touchdown run on our first play from scrimmage—the very first play of our season. Now we were going for the two-point conversion to take the lead.

I knew the defense was dialed in on Adrian. The opposing coach, Jersey Mike, was now ranting and raving like a lunatic. His Eagles had put together a somewhat disjointed but ultimately effective drive in our YMCA contest, eventually scoring a touchdown.… Read more

This market bounce is giving us a rare window to sell our laggards—and snap up stocks that have been unfairly left behind.

When we dump losers, we want do it into strength. And on the flipside, bounces like this often leave strong bargains in their wake.

Let’s start our “rebound rotation” with two blue-chip laggards lots of people own. Then we’ll pivot to two holdings of my Hidden Yields service that are smart, contrarian places to put cash now.

GIS Is a Prime GLP-1 Target

General Mills (GIS) draws a lot of revenue from snacks people eat routinely (and often without thinking much about it), like Bugles, Dunkaroo cookies and high-sugar cereals like Cocoa Puffs, Cinnamon Toast Crunch and Cookie Crisp.… Read more

The ever-evolving situation in the Middle East has left a lot of uncertainty in the air. But in unpredictable times like these, the best move is often simply this: stay the course.

Investors in high-yielding closed-end funds (CEFs) know this. Our favorite income plays throw off dividends averaging 9%. That means we can sit back, wait out volatility and get paid handsomely as we do.

And some CEFs, like our long-time portfolio holding the Adams Diversified Equity Fund (ADX), go one further: ADX kicks out an 8.3% dividend as I write this. And it does this while outperforming the S&P 500 over the long haul.… Read more