2 dividend stocks that could double pay-outs by 2026
Aug 10, 2021Good morning!
Markets are up slightly ahead of jobs data, but I would take that with a huge grain of salt; it’s a technical updraft. Traders are simply trying to get ahead of the next move because they know they cannot afford to be caught on the sidelines.
Here’s my playbook.
1 – Trade Robinhood, but only if you know how the game is played
The day Robinhood filed for its IPO I quipped on national television that it would potentially be the biggest self-pump and dump in history. It appears I wasn’t far off.
Pump … Pre-IPO road show during which we learned the Pluto is CEO’s favourite planet
Dump … CEO Vlad Tenev urged people not to flip shares then did exactly that on the first day of trading and banked a cool $275 million for his troubles.
Pump … Massive dark pool prints a few days later. Shares shot higher.
Figure 1 Tip o'the hat to Stefanie Kammerman the Stock WhispererDump … Now reports suggest stockholders have filed to sell 97.9 million shares.
Anybody else see a pattern here like I do?
Robinhood is totally uninvestable, but entirely tradeable.
And, here’s a little something I posted on Twitter yesterday. Life is too short not to revel in the absurdity of it all. Please RT and share if you like it, BTW.
2 – Two stocks that could double pay-outs in 5 years or less
Income starved investors are pulling their hair out over low rates that the Fed seems determined to keep rates in place come hell or high water.
You’re not out of luck by any stretch of the imagination. I’ve recommended two companies in One Bar Ahead™ that could double your dividend payments within the next five years.
The first is Apple which has grown 245% since 2018 versus an impressive 65% from the S&P 500. The second has seen shares prices jump 99.12% over the same time frame. The second is a leading global payments provider the One Bar Ahead™ Family knows well.
Two things should jump out at you.
First, anybody buying the index is falling badly behind. The best companies do NOT trade in line with the broader markets but continue to plow sharply higher. And second, both companies are growing so fast that they’ll likely both boost dividends quickly.
The fact that neither is thought of as an “income” stock is a bonus because they’re off the radar in plain sight.
3 – APES, you are being heard!!!
The CBOE is taking steps to fight back against dark pool abuse by creating periodic auctions. The model is already in use in the EU but will differ slightly by including randomized auction messages and no broker preference. Displayed orders may also be a part of the process.
My POV is super simple.
The CBOE’s plans are an important start in combating dark pool abuse because they could give retail investors an alternative to block trades on-exchange. I also like the fact that the auctions are apparently going to be triggered by market participants, not the venue. That should aid in price discovery AND boost liquidity in otherwise thinly traded stocks or more volatile stocks. I have to believe that this will also help reduce internalization which is a huge part of the problem.
It’s not perfect by any stretch, but it’s a start!
4 – Brace yourself if you own health insurance stocks
JPMorgan announced that it’s investing $50 million in Vera Whole Health, a Seattle start up just down the road that’s pioneering a subscription-based model for employee healthcare. JPMorgan will roll it out this fall during benefit enrolment season.
5 – Ethereum “hard fork” activated; why it matters
Ethereum recently activated a much-hyped move called the “London” hard fork. There’s no new dinner ware but there is a big software update in place. Blockchain’s critical weakness is that scaling is challenging. Not surprisingly transaction fees are higher than they arguably should be. Nonfungible tokens, the majority of which are built on Ethereum’s blockchain have exacerbated the problem.
The “London” hard fork effectively addresses both.
While I advocate owning both Bitcoin and Ether, I am increasingly leaning towards Ether as the stronger play. It’s up 3.9% over the past 24 hours to $2,620.
You’ve simply got to play the odds.
Bottom Line
If your investments are not working, the problem isn’t the markets, the Fed, China, or anything else. Chances are it’s the person looking out at you in the mirror who’s holding you and your money back.
Don’t make excuses and don’t spend your days following the herd trying to make money like everybody else.
Go CREATE opportunity!
Starting now.
As always, MAKE it a great day.
Keith
