My Dividend Hunter service and recommended portfolio are dedicated to generating income from high-yield stocks and ETFs. My focus stays on overall portfolio results, primarily on total income earned.

Recently I dug a little deeper into current yields… and I discovered the Dividend Hunter investments are priced like the economy is in a deep recession.

This marks a once-in-a-lifetime opportunity to lock in some sky-high yields and the potential for double-digit stock rises…

I launched the Dividend Hunter service in 2014. Over almost a decade, and numerous changes to the portfolio recommendations, the average yield has stuck close to 8%. The average yield would go higher during market corrections or bear markets and somewhat lower near the top of broad-based bull markets. I see 8% as the norm, and times with higher or lower average yield tells me a lot about what investors are thinking.

I divide the current Dividend Hunter recommended portfolio into three categories: Stable Dividend Investments, Variable Dividend Investments, and Fixed Income investments, which includes preferred stocks and bonds funds selected to provide principal stability. These investments pay an average current yield of 7.1%.

I started the Variable Dividends group in 2020. Adding variable payers allowed me to diversify the portfolio into areas like covered call ETFs and energy royalty companies. There are seven investments in the group, which currently includes a couple of preferred stocks. The Variable Dividends investments pay fixed dividends but come with added risks due to recent corporate challenges. This group has a current average yield of 13%.

There are 16 investments in the Stable Dividends category. This group represents the core of the Dividend Hunter strategy and looks the most like the portfolio did when I first launched the service: high-yield investments with sustainable dividend rates. Most of the companies in this group also grow their dividends over time. By historical standards, this group is fairly priced when the average yield is around 8%.

Currently, eight of the Stable Dividend investments yield over 10%; the average yield for the group is 9.85%. Yields move in the opposite direction of share prices. A near 10% average yield tells me that these investments are undervalued. You can invest at current prices and lock in a near 10% (and growing) yield and income stream.

Share prices must increase to return from current yield levels to the historical norm. For the yield to drop from the current 9.85% to 8%, share values must increase by more than 23% (it’s straightforward math).

To my subscribers, I emphasize that we measure results by tracking portfolio income. We can’t do anything about share prices but can invest to earn a stable, high-yield, and growing income stream. However, when the investments are undervalued, as indicated by above-average yields, investors will see their portfolios grow as yields return to the norm. It’s automatic wealth-building.

Here are a couple of investments out of the portfolio: Arbor Realty Trust (ABR) is a commercial finance REIT. Arbor has steadily increased its dividend, with solid cash flow coverage. ABR currently yields 13%. And the Virtus InfraCap U.S. Preferred Stock ETF (PFFA) is an actively managed preferred stock fund. PFFA pays stable monthly dividends, which have increased each of the last two years, and yields 10.8%.

To see how to join my Dividend Hunter service and get my full portfolio of personally vetted, high-yield, low-risk dividend stocks, see below.