A solid strategy for investors looking to outperform in flat and down markets starts with a portfolio built of low volatility, dividend-paying companies.

This month several mainstream media outlets joined the Mauldin Economics chorus in praising dividend stocks. Take a look at these headlines…

From CFO Journal by the Wall Street Journal:

From Forbes: (also includes 10 attractive buys) – Editor Money Talks

And this extremely accurate headline from the New York Times:

Why extremely accurate? Because most often, the bigger the yield, the greater your risk. The takeaway here is: Don’t fall into the high-dividend yield trap.

Building a portfolio of the right dividend-paying stocks is not simple or easy. Fact is, it takes as much research as any other type of investing-perhaps more. But, if you succeed, the rewards are a continuing stream of income in an otherwise “yieldless” environment.

That’s the goal of Mauldin Economic’s most popular investment letter, Yield Shark-helping investors build the right type of income portfolio for today’s market.

And we’re on the right track-in 2013,Yield Shark generated a total return of 18.59%.

How did we do it?

• By carefully constructing a low-beta portfolio-made up of companies with strong dividend yields, low valuations, and less volatility than the S&P 500, and

• By selling positions when, in this choppy market, a stock became overbought. With Yield Shark, we’re investing for long-term income, but when the opportunity to take an outsized profit arises, it makes sense to grab it.

I’m more than proud of our analysts and the portfolio they’ve built. They’ve successfully balanced risk and reward to generate a double-digit return while maintaining a low beta.

And they’re on track to do it again in 2014.

Our next recommendation-set for release in the next issue of Yield Shark-is for an exceptional timberland company paying an annual dividend of over 4%. But what’s more, the capital gain we expect to see could push its total return well into the double digits. And all backed by a company with hard assets of real estate and timber and a long history of increasing its dividend payments.

*Note: The following is an advertisment for a service, some of you may be interested in the offer so I have included it. For those who want to understand the author’s strategy the articles that are linked above should do the job – Money Talks Editor

I’d like you to see this recommendation, and the entireYield Shark portfolio, so you can determine if Yield Shark is the right tool to help you invest.

I also want to make sure you fully understand the challenges and opportunities presented by today’s market. That’s why I want to send you a copy of John Mauldin and Jonathan Tepper’s latest book, Code Red.

This best seller details the actions taken by the Fed since the financial crisis of 2008, predicts the bubbles that are now becoming very evident, and outlines the steps you should consider taking to protect your wealth.

Give Yield Shark a try and we’ll send you a copy of Code Red, with our compliments.

If for any reason in the first 90 days you are not completely satisfied, we’ll send you a prompt refund, less a modest 10% reprocessing fee (I need to pay for shipping and handling on that book!).

A one-year subscription to Yield Shark is only $99, and we’ll guarantee that price for life, so long as you maintain your subscription. Code Red makes a perfect investment companion and reminds you of the risks and opportunities today’s markets present.

If you already have a copy of Code Red, please pass this one on to a friend or relative not fully aware of the situation we face as investors.

Don’t go it alone in this market. Take a risk-free look at our most popular letter, Yield Shark, and read up on the challenges facing investors in this Code Red world. You won’t regret it.

Sincerely,

Ed D’Agostino,
Publisher, Yield Shark