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Cabot Dividend Investor 919

September 25, 2019

A huge new industry is being born in American energy exports.

Because of new technologies in fracking and horizontal drilling, America has gone from being hopelessly dependent on energy imports to the world’s preeminent energy powerhouse and the number one producer of both oil and gas in less than ten years.

Last month, the US was actually the world’s largest exporter of crude oil. That’s amazing. But the future is in the lesser understood fossil fuel – natural gas. As the cleanest burning fossil fuel, demand for natural gas is exploding across the globe.

It is the world’s fastest growing fuel source and demand is expected to increase 50% over the next couple of decades. At the same time, America has way more natural gas than it can use. And it often fetches four or five times the price of US natural gas in other countries.

In order to export natural gas across the oceans, it needs to be converted to liquid form (LNG), loaded onto tankers and shipped overseas. Until recently, the US did not have the facilities necessary to do that. But one company was the first to have such facilities and it’s up and running. And business is booming with no end in sight.

This month’s “featured buy” operates the first and largest US LNG terminal, while LNG is the fastest growing commodity in the world. The stock has blown away the returns of the S&P 500 at a time when stocks in the energy sector were the worst performing on the market. Yet the stock is still reasonably valued and pays monstrous and growing 5.15% yield.

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Cabot Dividend Investor 819

August 28, 2019

We are in the late stages of a recovery and bull market. The economy is still strong and the bull market could continue for a while. But the escalation of trade frictions with China is disrupting the situation.
Since the trade war escalated a month ago, the market has fallen every week since. And things might get worse before they get better. The trade war takes a small toll on the economy but it hurts the global economy much more. A faltering global economy would come back and bite us, and perhaps draw the next recession closer.
With no catalyst in sight to fix the current situation and a recession looming somewhere in the not-too-distant future, it makes sense to play defense. Defensive dividend paying stocks are the stars of the market now and may continue to be for a long while.
In this issue I highlight one of the very best defensive dividend stocks on the market. It has rock solid earnings in any environment and the stock should perform well in just about any market.

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Cabot Dividend Investor 719

July 31, 2019

The market continues to slowly slog higher in the dog days of the summer. It’s a time of year when investors are more focused on squeezing more fun out of the last days of the summer than investing. Markets seem to behave the same way they did when investors stopped paying attention. In this case it likely means a higher crawl until Labor Day.
Of course, an outside event can always change things. We’ll see what happens with today’s Fed rate decision. But unless something rocks the boat, markets will probably remain on autopilot for the next month or so.

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Cabot Dividend Investor 619

June 26, 2019

So far, the market has had a fantastic year with the S&P up 16.38% at the halfway point. It’s also been a stellar June as the index has climbed 7.3% this month alone. Now, the market is perched near all-time record highs. In this issue, I highlight a stock that is cheap in an expensive market that has a great chance of moving higher in the quarters ahead. It is the best run American refiner that has been knocked back because of temporary conditions in an environment otherwise ideal for American refiners.

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Cabot Dividend Investor 519

May 29, 2019

The world is changing. That’s nothing new. But in terms of technology it’s changing at a faster pace than ever before. There’s a new term you’ve probably seen floating around the news, it’s called 5G. It represents a change so profound that as investors we need to understand it.

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Cabot Dividend Investor 419

April 24, 2019

There is tremendous growth ahead for technology. There will be incredible opportunities to invest. While you probably don’t associate technology stocks with a dividend newsletter, things are changing. In this issue I identify a technological behemoth that is now a blue chip dividend payer. Its products are so widely used that owning the stock provides a great way to play the technology revolution in general and gain exposure to the explosive growth.

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Cabot Dividend Investor 319

March 27, 2019

In this issue I highlight a company that has been investing in infrastructure assets all over the world. The stock has doubled the return of the S&P 500. And business will only get better.

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Cabot Dividend Investor 219

February 27, 2019

In this issue, I identify the bluest of blue chip energy infrastructure stocks at a dirt cheap price with a 6% yield. Business is booming and it is only a matter of time until the market starts rewarding the stock.

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Cabot Dividend Investor 119

January 30, 2019

In this issue I identify a fast-growing biopharmaceutical company that will benefit as the changing population demands better healthcare than ever before. It is well established with a high dividend yield and poised in front of the wave at the cutting edge of medical innovation.

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Cabot Dividend Investor 1218

December 19, 2018

I launched Cabot Dividend Investor five years ago to help investors like you build a balanced portfolio of reliable dividend-paying stocks. It’s been a great journey, and I hope you’ve learned a lot and have made some money.
Cabot Dividend Investor isn’t going anywhere, but it’s time for me to move on. I’m excited to pursue new opportunities in the New Year, and I’ll be leaving you in great hands. Tom Hutchinson, the new Chief Analyst of Cabot Dividend Investor, will introduce himself in this month’s issue, with his take on the market and an exciting new stock pick.
But before I turn everything over to Tom, I’m going to wrap up a few loose ends in the portfolio—some things have unraveled a bit over the past month.

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Cabot Dividend Investor 1118

November 28, 2018

In today’s issue, I’m adding one more utility to the Safe Income tier. The Fed wants to keep the conversation about rate hikes going—four Fed members are giving speeches this week, including Chair Jerome Powell later today—but markets believe that rates are rapidly approaching “neutral.” In a speech on Tuesday, Vice Chair Richard Clarida said the Fed needs to be even more data dependent as the benchmark rate nears its “ultimate destination,” rather than committing to a certain number of rate hikes.
Elsewhere, our Safe Income stocks are all doing well, and most of our Dividend Growth and High Yield holdings are looking healthy as well. And at the end of today’s issue, I’ve provided a watch list of some stocks on my radar for addition to the portfolio.

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Cabot Dividend Investor 1018

October 31, 2018

October has been a challenging month for many investors, but dividend stocks and income investments have been a rare safe haven. After a few sells last week, our portfolio is looking ready for whatever November throws at us. So far, investors are optimistic about turning the calendar page: the market managed to rally yesterday and then opened higher today.
However, we’re not out of the woods yet, and as always, I recommend sticking with what’s working. That’s why today I’m adding another conservative consumer staples stock to the Safe Income tier, which I expect to provide us with a secure income stream for a long time.
Read the whole issue for the story, plus earnings updates on many of our holdings, and a look into why REITs have been doing so well recently.

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Cabot Dividend Investor 918

September 26, 2018

The market continues to make progress, despite the dramatic headlines gracing the front page every day (and popping up online throughout the day). Today I’m adding a well-known restaurant stock to the Dividend Growth tier of our portfolio, to take advantage of rising consumer spending and the strong American economy. I also have updates on all our stocks, most of which are rated Buy, and at the end of the issue I take a look at the importance of diversification.

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Cabot Dividend Investor 818

August 29, 2018

The most bullish thing a market can do is hit new highs, and that’s what we’ve seen from this market in recent days, with most indexes and stocks participating on the upside. And with interest rates remaining tame, our dividend stocks have been doing well, too.

All of this is good, though it makes this month’s choice of a featured stock a bit more difficult, as many names are a bit extended to the upside. In the end, I went with a strong stock that gives us leverage to the strong U.S. economy—both the stock and dividend payment are likely to head higher over time.

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Cabot Dividend Investor 718

July 25, 2018

In today’s letter, I’m adding a consumer staples stock to the Safe Income Tier, positioning the portfolio to take advantage of a possible rebound in the sector. If it doesn’t come to pass, we’ll still be happy to own the stock, a Dividend Aristocrat with near-perfect Dividend Safety and Growth scores.
Elsewhere, I’m selling half of a laggard in the Dividend Growth Tier, and have included earnings expectations for all of our stocks. And at the end of the issue, you’ll find a fresh explanation of a tried-and-true method for boosting your yield.

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