If you feel like you’re missing the kind of income you used to get from stocks, you’re not wrong.
American corporations are as cash-rich as ever. Profits are healthy.
The average company in the S&P 500 pays a dividend less than 2%. That’s just not the kind of income investors need to build on their retirement savings.
Experienced investors will remember a time when blue chips averaged over 3% and routinely topped 5% up until the 1960s. Even as recently as 1980, the dividend yield of the S&P 500 was over 6%.
Today, dividend yields are smaller than they were before the market crash of 1929 or the panic of 1987.
In simple terms, the upward march of stock prices has not been in lockstep with growth in dividend yield. Why?
Companies realized a dividend policy can backfire if it can’t be sustained. So, they’ve cut back on dividends – playing it safe rather than risking a potential dividend cut.
When a company reduces or eliminates its dividend, investors scramble for the exits, resulting in a substantial fall in price.
For instance, in December of 2015, Kinder Morgan (NYSE: KMI) announced a dividend cut and saw its share price fall 66% over the next six months.
Triangle Capital (NYSE: TCAP) cut its dividend in 2016 and fell 17% the next day!
And nitrogen supplier Terra Nitrogen Co. (NYSE: TNH) cut its dividend last month and the stock is down 14% since then.
It’s better to have a small, manageable dividend than to risk having to cut it later.
So, the problem is, how do you find the kind of income that used to be so bountiful?
The money is out there. And I think we’ve found it.
Special Dividends: Off the Radar
We dug into over 4,218 “unlisted” dividends, and realized that most of the biggest dividends were completely off the radar of investors.
Some companies have no official dividend policy, but still pay out dividends – and frequently these dividends are much larger than the average. The lack of a dividend policy is key here, because it means there’s no expectation from the market, so the company doesn’t get punished for missing or cutting a payout. It also means most investors never hear a word about these big dividends until days or weeks later.
These companies simply return excess cash to shareholders when it’s convenient. They don’t raise or lower their dividends . . . they just issue them when they can.
Over the past 10-month period, we’ve found 17 of these payouts, averaging more than 13%.
That’s not 13% in a year . . . it’s 13% in a one-day payout.
You read that right: over 13% in one day – more than six times the income you’d collect from the average S&P 500 stock.
What are these companies? They run the gamut. We’ve helped our readers collect giant dividends from companies in nearly every sector you can think of, including:
- An 8% dividend from a property and casualty insurance company
- A 24% dividend from a semiconductor manufacturer
- A 15.9% dividend from a media company
- An 8.8% dividend from an office supplies company…
And so on.
How to Collect Special Dividends
If you’d like to collect some of these “unlisted” special dividends of 13% or more, I have good news.
This coming Wednesday, we’re hosting a live event dedicated to revealing how to collect these special dividends for yourself.
We’re even going to give you the names of three companies we believe are on the cusp of announcing special dividends.
Just click here to attend.
The point is this: Cash-rich American companies still pay healthy dividends. But you can’t rely on the standard quarterly payout formula to find the best payouts. You have to do a little more digging.
Join us for this live event on Wednesday and we’ll show you how to dig.