Three Wise Dividend-Investing Strategies for Profiting

Three wise dividend-investing strategies can help provide significant supplemental income along with share price appreciation.

The three wise dividend-investing strategies are reflected through the Intelligence Report investment newsletter led by Jim Woods, who shared his multiple ways of using a “disciplined approach” in choosing recommendations. Woods told attendees at last week’s FreedomFest in Memphis, Tennessee that his recommendations are aimed at buying stocks for the long term, diversifying holdings among key segments, owning equities with rising dividends, preserving assets and pursuing strategic short-term and long-term moves.

Three wise dividend-investing strategies use by Intelligence Report fit the categories of Income Multipliers, Tactical Trends and Portfolio Protection. The Income Multipliers encompass 20 “best-of-breed” dividend-paying stocks that come from 12 sectors, Woods said.

Paul Dykewicz speaks with Jim Woods, who heads Intelligence Report.

Three Wise Dividend-Investing Strategies: Income Multipliers

That diversification helps to shield investors through market swings. The aim is to use patience and the power of compounding dividend payouts to profit.

Although the Income Multipliers lost 2.58% in 2022, that performance far exceeded the 18.11% drop in S&P 500 Index (^SPX). The Income Multipliers are drawn from sectors such as consumer discretionary, consumer staples, energy, financial, health care, industrial, information technology, materials, real estate and telecommunication services. One of the recommendations has its own category of special situations.

Three Wise Dividend-Investing Strategies: Tactical Trends

Another way to invest through Intelligence Report is the Tactical Trends Portfolio that recommends both stocks and exchange-traded funds (ETFs). The recommendations are based on fundamentals, technical analysis and NewsQ, Woods told the attendees.

NewsQ is a term that Wood uses to identify stocks and funds that are gaining buzz in the form of media attention. Such rising profiles can encourage extra buying in stocks and funds to boost their share prices.

The Tactical Trends Portfolio manufactured a massive 11.26% upward move in 2022. That rise is even more impressive when compared to the 18.11% drop in the in S&P 500 Index (^SPX) last year.

Tactical Trend stocks include Apple (NASDAQ: AAPL), of Cupertino, California, Tesla (NASDAQ: TSLA), of Austin, Texas, and Nvidia (NASDAQ: NVDA), of Santa Clara, California.

Chart courtesy of www.stockcharts.com

Three Wise Dividend-Investing Strategies: Protection Portfolio

The Protection Portfolio includes an array of holdings such as short- and intermediate-term bond funds. With the Fed engaged in boosting rates to the highest level since 2007, bonds have not been bulling ahead.

However, the Protection Portfolio also includes an ETF focused on essential consumer staples such as food and beverages. A dividend-growing ETF is another path to potential profitability.

The portfolio also includes a gold ETF focused on offering one of the traditional hedges against disaster. Plus, the portfolio’s combination of income, consumer staples, dividend growth and gold limited its 2022 loss to just 1.31%, compared to the 18.11% plunge of the S&P 500 Index (^SPX).

Three Wise Dividend-Investing Strategies Contrast with Investing in Options

Income investors who also like the idea of Interested in 10 highly profitable stock and option trades to propel personal portfolios. Double-digit-percentage stock trades and triple-digit-percentage returns on option transactions have been achieved by Woods in his Bullseye Stock Trader service, also known as BEST.

His 10 highly profitable stock and option trades since 2019 in the Bullseye Stock Trader service offer a contrast to conservative income investing. Bullseye Stock Trader has notched some especially strong performers among its various trades.

The stock and option trading service turned to technology for two of its most potent picks. One delivered a 55.79% gain in Taiwan Semiconductor (NYSE: TSM), of Hsinchu, Taiwan, in only 119 days, while announced produced a 55.79% profit in Nvidia within just 98 days. 

Chart courtesy of www.stockcharts.com

Interested in 10 Highly Profitable Stock and Option Trades as Alternative to Dividend Equities?

• Average annual return since inception: 122.05%

• Average days held: 56.3

• $100,000 start value would become $222,050 in 1 Year

• $100,000 start value would become $1,631,465 in 3.5 Years

Both stocks and options have produced some robust returns for Bullseye Stock Trader. The following lists show the hefty gains in relatively brief holding periods for Bullseye Stock Trader.

10 Top Stock Trades in BEST: 2019-2023

• Thor Industries (THO): 45.75% in 63 days 
• Tractor Supply (TSCO): 20.02% in 56 days
• Netflix (NFLX): 19.8% in 22 days 
• Match Group (MTCH): 38.07% in 41 days 
• Planet Fitness (PLNT): 23.54% in 77 days
• NVIDIA (NVDA): 55.79% in 98 days
• MercadoLibre, Inc. (MELI): 40.40% in 75 days 
• Vista Outdoor Inc. (VSTO): 44.69% in 70 days 
• Taiwan Semiconductor (TSM): 55.45% in 119 days 
• Voyager Digital Ltd. (VYGVF): 244% in 56 days

 10 Top Option Trades in BEST: 2019-2023:

• LNG Mar $125 calls: 224.20% in 42 days
• TSCO Oct $130 calls: 151.95% in 56 days 
• THO Sep $70 calls: 301.81% in 63 days
• COST Jan $460 calls: 298.51% in 70 days
• NFLX Jun $355 calls: 151.94% in 22 days
• PAYC Feb $280 calls: 256.90 in 28 days 
• MELI Jan $1340 calls: 185.29% in 56 days 
• VSTO Aug $35 calls: 219.64% in 70 days 
• TSM Nov $85 calls: 243.94% in 70 days 
• MTCH Sep $75 calls: 447.30% in 41 days 

The biggest stock trade gain of 244% occurred in just 56 days from Voyager Digital Ltd. (TSX: VOYG; OTCQX: VYGVF; FRA: UCD2). Woods advised his subscribers to take profits before the company entered a voluntary restructuring process on July 5, 2022.

Jersey City, New Jersey-based Voyager Digital, founded in 2018, initially announced it planned to bring “transparency and cost efficiency” to the marketplace by providing a platform for trading more than 60 different crypto assets through its mobile application. The company gained media attention when its CEO Steve Ehrlich held a press conference with Dallas Mavericks Governor Mark Cuban and several players to publicize a five-year “international” alliance between the two organizations to promote crypto trading.

Interested in 10 Highly Profitable Stock and Option Trades? Five Major Characteristics

Woods gave a detailed presentation on his Bullseye Stock Trader investing strategy at last week’s FreedomFest conference in Memphis, Tennessee. He discussed identifying stocks on the ascent by using five major characteristics.

The first step is to screen for stocks that have outpaced their peers for the past six to 12 months on a relative strength basis, Woods said. The goal is to find consistent, proven winners beating at least 80% of all stocks in the market, he added.

“We only want thoroughbreds, no donkeys,” Woods quipped to the FreedomFest attendees.  

Earnings Power Is a Good Sign for Stocks or Options

Woods further spoke of screening for stocks that have outpaced their peers for the past several quarters and years for earnings per share (EPS) growth. He talked about wanting consistent, proven winners outperforming at least 80% of all stocks in the market.

“Forget about value, the real value is earnings growth,” Woods said.

The other three screening tools focus on finding a positive trading pattern, establishing industry leadership and gaining positive NewsQ, Woods explained.

“NewsQ is the ability to take the market’s pulse on a specific stock or industry to see if there is enough positive, or absence of negative, news items in that stock that can drive it higher,” Woods said. “Thus, NewsQ interpretation is part science, part art, part market awareness and a lot of applied experience.” 

Three Wise Dividend-Investing Strategies

Those interested in three wise dividend-investing strategies can try to maximize investment returns by following Intelligence Report recommendations. Stable, income-producing investments favored in Intelligence Report may offer strong appeal to fend off political risk due to Russia’s unrelenting invasion of Ukraine that in the last week included targeting the important agricultural port of Odessa and grain storage facilities in a possible attempt to cause food shortages and a global humanitarian crisis. With Russia’s President Vladimir Putin waging deadly attacks against civilians in neighboring Ukraine, the safety of dividend-paying stocks and funds could make sense for a large number of investors.

Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Paul can be followed on Twitter @PaulDykewicz, and is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.