‘Stealth Wealth’ Stocks

Dear Reader,

The allure of high dividend yields in this market is irresistible.

The idea of regularly receiving cash payouts can seem like the perfect strategy when interest rates are rising and stocks are going nowhere.

Dividend payers are among the ‘friendliest’ investments on the market. They don’t require you to speculate on the ‘next big thing’ or chase the price of some microcap that could come crashing down next week.

They’re real companies, making real money — some of which they deposit into your account a couple of times a year.

Simple. Safe. Stress free.

It’s no secret why these kinds of stocks are beloved by people approaching their golden years — people with too much at stake to go betting on the next ‘hot market’.

Knowing you’ve got the safety net of a regular income that’s not tied to the ups and downs of the market can feel like a weight off your shoulders.

This is precisely why I’m telling my readers to build a portfolio of dividend payers right now.

But which ones?

Not all dividend stocks are created equally as I’ll show you today.

In fact, I’d go so far as to say there’s a ‘right’ and ‘wrong’ kind of dividend stock on the market.

And it might surprise you to learn that the ones offering the biggest yields may not deliver the long term stability you’re dreaming of.

Let me explain…

Search online and you’ll turn up dozens of financial articles plugging dividend stocks right now, titled things like…

‘Best Dividend Stocks on the ASX’ — Forbes

‘Top 10 ASX Dividend Stocks to Watch’ — IG

‘Ultra-High-Yielding Dividend Stocks on the ASX’ — The Motley Fool

These articles are full of companies you’ve probably heard of, touting some impressive yields, but what many fail to consider is this…

Yield is just one component of total return…the other being capital appreciation.

If you focus solely on chasing yield, you may end up with a serious shortfall in your capital down the line.

I’ll give you an example.

Below is a 12-month chart of one the highest paying dividend stocks on the ASX from October 2022–October 2023.

Cromwell Property Group pays a juicy yield of 14.75%.

All well and good.

But take a look again and you’ll see that the stock has plummeted 43% over the past year.

Source: Market Index

That means, if you’d sunk $10,000 into this stock 12 months ago — dreaming of that big dividend payout — it would be worth just $5,644 today. Ouch.

Yes, getting a dividend cheque in the post is a great feeling. But if you’re not careful, you may find your nest egg is actually shrinking faster than you planned — because the company paying you that dividend is losing market value.

That’s the last thing you want if you’re relying mostly on dividends for income, especially if you don’t have time on your side to make up any shortfalls.

Here’s another ‘high yield’ stock listed on the ASX:

Source: Market Index

Magellan Financial Group is paying out an attractive 16.64% yield...but its stock price dropped by 32% over the last 12 months.

A $10,000 investment a year ago would now only be worth $6,732.

Or this one, Centuria Office REIT:

Source: Market Index

Another ‘big payer’ whose price has dived over the last 12 months.

Sure, a 12.26% dividend sound great, but when the stock price slides 20% over 12 months, it’s like one step forward, two steps back.

$10,000 invested at the time would now only be worth $7,986.

The idea of regular income loses its appeal when
you’re burning through your capital just holding
onto a dividend stock for 12 months

This is the major problem with chasing yield.

Just because a stock is making news for big payouts doesn’t automatically make it a great investment.

But don’t worry.

There are other, better, choices out there as I’m about to show you.

These firms get less of the limelight…

Not because they aren’t great companies…or because they don’t pay healthy, consistent dividends.

They just don’t top the dividend charts in terms of yields.

However, they are making solid profits while their stock price has been quietly marching higher.

Let me show you…

Source: Market Index
Past performance does not guarantee future results

Stockland Corporation ‘only’ paid a dividend of 6.62%, BUT its share price went up 21% over the last 12 months as well.

So, you could have gotten a healthy dividend payment deposited in your bank and every $10,000 initially invested would now be worth $12,095.

That’s a completely different experience.

It’s not about striking it rich off these kinds of stocks.  

It’s about sleeping easier at night knowing that your nest egg is not only rewarding you with cold hard cash now, but also appreciating over time.

Here’s another one…

Source: Market Index
Past performance does not guarantee future results

Dalrymple Bay Infrastructure pays a dividend yield of 7.26% to investors, which is great...AND its share price shot up by 20% over the last 12 months.

A $10,000 investment in this firm 12 months ago would now be worth $12,026 — and you got paid to watch it grow the whole time.

Here’s one more…

Source: Market Index
Past performance does not guarantee future results

Accent Group pays a modest dividend of 8.88% to investors, which won’t make headlines when everyone is chasing high yields…

But look at the capital appreciation. It’s up by 58% over the last year!

Sure, an 8% yield is easy to gloss over when you’ve got a buffet of double-digit dividends on offer, and constantly promoted online.

But how many of them could turn every $10,000 invested into $15,823 within 12 months — while paying you for the pleasure?

Not many.

But there is a small class of stocks on the ASX that have the potential to pay you TWICE like this…through regular dividends, AND capital growth too.

They’re what I refer to as
‘Stealth Wealth’ stocks.

These are the quiet achievers that get less media attention but could make a world of difference to your portfolio, and lifestyle over time.

You won’t find any of them listed on those ‘Best ASX Dividend Stocks’ articles that are littering your news feed right now.

Anyone can look up ‘top dividend payers’, sort them by yield and gather them in a list…but as I’ve shown you, putting all your faith in those could be a misstep.

If you look a little closer, you’ll realise that these volatile markets have beaten down some solidly performing stocks…even ones that are paying consistent dividends to their shareholders.

Trouble is that few investors know how to TRULY value a company...meaning not many can see how an undervalued income stock could vastly outperform over the long run.

It’s not an easy thing to do. It takes patience, a thorough understanding of what constitutes true value, and a little luck.

But in my opinion, this is the sweet spot for smart investors right now.

My name, by the way, is Greg Canavan.

I’ve been featured on CNBC, Sky News, The Sydney Morning Herald, and The Australian, and I contribute regularly to Livewire.com.

I’ve been involved in financial markets for nearly 30 years, starting my journey with a company called MLC back in the late 90s.

But my real baptism by fire came in the early 2000s when I took a $100,000 loan from my dad to invest in the stock market and hone my craft.

Optimistically, I offered him an interest rate slightly better than the banks, hoping for a decent return.

I quickly turned that $100,000 into about $75,000.

Early investment failures were hard pills to swallow, and I knew I needed to figure out what I was doing — fast.

So, I knuckled down and started studying valuation. I read all the investment ‘gurus’ you’ve probably heard about like Warren Buffett, Ben Graham, Kenneth Fisher, and countless others I can’t recall now.

One of the things I learned about myself in the process was that I looked at investments from a contrarian perspective. I was always naturally wary of where the crowd was investing.

In my early days, I made the mistake of thinking that just because a company is out of favour it should be a good contrarian investment.

But I learned the hard way that it doesn’t always work out like that.

After some false starts, I managed to make back the money back that I’d lost plus a little bit more to pay my old man back with a profit.

One of the biggest breakthroughs for me came when I discovered that charting could play a huge part in investing successfully. Charts are like a window into investor psychology, and they sometimes highlighted that a contrarian investment was not necessarily a good one.

The combination of these two approaches has helped me discern which stocks are duds and which ones have potential more accurately.

Since 2010, I’ve been helping Fat Tail Investment Research customers build stable, resilient portfolios that could weather storms and tap into opportunities alike — whether we’re in a bull or a bear market like now.

In this high-inflation, sideways-moving market, I’m convinced that ‘Stealth Wealth’ stocks are your best strategy for locking in consistent income — without sacrificing the possibility of future growth.

In fact…

I’m prepared to share SIX of these
‘Stealth Wealth’ stocks with you today

Uncovering these gems has been my focus for the past few months.

And let me tell you…it hasn’t exactly been a walk in the park.

I suppose if it was easy everyone would be doing it, right?

You can’t just scan for the highest dividend yields or stocks that have paid consistent payouts over the longest time period…

You need to get into the weeds and dig into financials and, occasionally, you may just find a gem of a company that’s trading at a significant discount to their intrinsic value…AND paying healthy dividends.

They’re rare.

But this is the sweet spot you should be looking for — the handful of opportunities that offer both solid income and growth potential.

Now, to be clear, long-term capital gains and regular dividends are never guaranteed in the stock market.

And while no stock is risk-free, these aren’t as speculative as a tiny growth stock that could shoot up or come crashing down overnight.

But according to my analysis, they all attractively priced and present strong opportunity for growth — while paying consistent dividends.

I’ve put all my findings in a brand-new report titled ‘Stealth Wealth: Six Undervalued ASX Stocks Paying Healthy Dividends’.

In this guide, you’ll find stock names, ticker symbols, forecast dividend yields, payout ratios, and my valuation analysis, along with a full write up of each company including any associated risks. 

And while I recommend you weigh up my recommendations to see if they fit with your investment strategy — if you do want to dive straight in, then this guide includes everything you need to get started immediately.

Stealth Wealth Stock #1 is looking deeply oversold right now.

Source: Optuma

There’s no denying this stock is in a well-defined downtrend…

And as I’ve mentioned, just because everyone is shunning a stock doesn’t automatically make it a good contrarian investment in my book.

But where this stock shines in my opinion is its value. Put simply, the market is betting that it’s going to perform poorly over the next 12 months.

While this firm operates in an ‘out-of-favour’ sector right now, this business generates significant cash flow. And when compared to its competitors in the industry, this looks like a very attractive buy.

It’s currently trading at 50% off from its September 2021 high, meaning you’re potentially buying at a low point of the cycle for this firm.

It’s got a forecast dividend yield of 7.3% — which is nothing to sneeze at — but also has a track record of consistent payouts since 2005.

With profits and profitability estimated to increase in the years ahead, this is a great opportunity to build real capital growth over the next two to three years while getting paid a share of the profits while you wait.

Of course, there are no guarantees in the stock market. But consistent income like this is a nice bonus while you wait for a potential rerating.

Stealth Wealth Stock #2 is a property-based investment that I expect to benefit from the end of the rate-rising cycle.

It’s currently trading at 0.7 times book value and offering a 6.6% dividend meaning you can get paid while waiting for capital appreciation on top.

I share my detailed analysis inside your complimentary report that you can download today.

Stealth Wealth Stock #3 is a Real Estate Investment Trust (REIT) gearing up for a special situation where it will spin out key assets.

It’s currently undervalued by as much as 50% according to my valuation, and paying a healthy dividend of 8.2%.

But with such an extreme discount, the potential uplift you could see if you jump on now could be significant, and you’ll get paid along the way.

Stealth Wealth Stock #4 is the highest-paying dividend stock you’ll find in your complimentary report, boasting a solid yield of 10.5%.

As such, this stock has gotten a little more attention from income investors chasing yield like I warned you about earlier…

But its value proposition isn't just in the yield. It’s a hugely profitable business, and in my opinion, has much more room for capital growth.

Stealth Wealth Stock #5 is a mining infrastructure play with exposure to commodities, especially coal.

Despite its smaller yield of 5.3%, I’m confident it has significant potential for capital growth with a good chance of rerating in the next 12 months.

My readers previously had the chance to make a 31% gain on this stock in 2019, and now I’m recommending it again at even better value.

Stealth Wealth Stock #6 is a resources rebound play in a sector viewed sceptically by environmental advocates.

Contrary to common belief, I’m predicting this firm is going to see increased demand over the next decade.

With a 6.5% yield and favourable macro environment priming it for recovery, it could see healthy capital gains for the foreseeable future.

Navigating these sideways markets can often feel overwhelming, especially when you're fighting the relentless tide of inflation. 

Think of this guide as your treasure map, offering you the potential to both bolster your income and steadily grow your wealth over time. 

You can get your hands on this report today.

All I ask is that you take a no-obligation test run of my monthly newsletter, called:

Fat Tail Investment Advisory

The aim of this monthly advisory service is to help you invest as soundly as possible using a rational and contrarian framework.

I know, I know…everyone is a contrarian these days.

But I’d wager most are not. Not when it comes down to it.

It takes a certain kind of person to recognise when a stock is truly showing value…and buy when the rest of the market hates it.

Like I did with coal and oil and gas stocks in 2021, when everyone else thought the world was going green.

Subscribers who followed my advice and bought Whitehaven Coal [ASX:WHC] at the time are sitting on gains of 429% as I write this.

Or when I recommended bank stocks in September 2020 while the economy was reeling from the COVID shock.

My readers had the chance to sell half their Westpac Banking Corporation [ASX:WBC] stake for 53% profits in eight months and make 84% profits on National Australia Bank [ASX:NAB] in 18 months.

You don’t usually get those kinds of returns from ‘blue-chip’ stocks…

Unless you’re buying — and selling them — at the best time.

That’s part of the reason for my investing success…and a mantra of this service:

‘Buy good stocks when the rest of the market hates them…and sell when others will pay any price.’

It’s an investing philosophy that’s served my readers well too, as you can see from some of the investments we’ve made below:

• 115% up on West African Resources [ASX:WAF] over three years so far…
  
• 125% returns on Lovisa Holdings [ASX:LOV] over 11 months…
  
• 77% returns on Alumina [ASX:AWC] in 18 months…
  
• 197% returns on Northern Star Resources [ASX:NST] over three years…
  
• 39% returns on James Hardie Industries PLC [ASX:JHX] in just five months…

Now, of course, I don’t always get it right. Sometimes a stock I recommend will go down before it goes back up again. And sometimes I get it wrong entirely.

In those cases, I’ll do my best to get you out quickly to avoid a big loss.

But the fact is just a few of these big wins can make a world of difference to your financial future…especially if you’re managing your own super or retirement fund.

And that’s who this service is for. Investors who don’t want to risk speculating on tiny stocks that might go bust.

Rather, I’ll show you how you can get solid capital growth and healthy dividends from quality stocks by buying them at the right price.

Here’s how your
membership works

Every month, you’ll get my latest overview of the market in an exclusive report.

In this briefing, you’ll also get my analysis on individual securities.

You’ll learn which Australian stocks I think are currently undervalued, which are overpriced, and why.

Your monthly reports also contain my portfolio of current buy, sell, and hold recommendations — for you to incorporate into your financial plan as you see fit.

I’ll also send you a private email (usually weekly) to keep you posted on the progress of stocks in the Fat Tail Investment Advisory portfolio.

I’ll tell you whether I think you should buy more, sell, adjust the portfolio weighting, or hold the position.

In these emails, I’ll also pass on any time-sensitive tips, plus reveal details of other investments on my radar.

One of the most valuable things you can get from your membership is a clearer understanding of just where we are in the bigger picture.

This is difficult to do when you’re constantly bombarded with headlines and information from all angles.

It’s easy to get swept up and not even think about the bigger picture.

But what if I could show you?

And what if I could give you an investment blueprint that could help you take advantage no matter which way the market is moving?

Not by punting on tiny stocks.

But by finding good value stocks with beaten down prices that pay consistent dividends and holding these beauties for the long term.

A few smart investments like these could pay handsomely for you over the coming years.

Here’s a breakdown of everything
that’s included in your membership

• REPORT: ‘Stealth Wealth: Six Undervalued ASX Stocks Paying Healthy Dividends’: Discover hidden gems on the ASX that offer a balance long-term capital growth with consistent dividends. These are my six hand-picked recommendations right now that offer the best of both worlds, so you can jump straight in.
  
• Access to my full list of current recommendations: These are my best opportunities for the next few years. You’ll see that you don’t need to speculate on tiny stocks. You can get capital growth and healthy dividends from everyday stocks that the rest of the market has discounted or ignored, if you know where to look.
  
• A 12-month membership to Fat Tail Investment Advisory: This entitles you the best investment opportunities I find (roughly one every month). Plus, you’ll get instant access to the archives of research on every investment on the current Fat Tail Investment Advisory buy list so you can see my rationale on why to buy.
  
• Regular updates and market analysis: If there’s an important story in the markets, I’ll tell you what it could mean for your investments in these regular communications. I’ll also use this opportunity to update you on open trades, alert you if it’s time to sell a stock and take profits or limit any losses, and share new investment ideas that are on my radar.
  
• Free subscription to The Insider: The Insider is a three-times-weekly digest of the investment ideas making our editors tick...and the strategies we’re formulating to help you navigate them. From gold...to real estate...to China...crypto...energy...small caps and more...The Insider truly is where you’ll hear about it first.
  
• You’ll also get a free digital copy of my book, You, Your Brain, & the Stock Market: This book proposes that the biggest obstacle to achieving consistent investment gains is you. Or, more accurately, your brain. As a result, you need to be aware of how your brain works, and the tricks it can play on you, if you want to achieve long-term success. I highly recommended you take the time to read this after joining.

So how much does membership cost?

A one-year subscription to Fat Tail Investment Advisory usually costs $499.

That’s a small price to pay to learn an investment strategy that could reward you very handsomely over the next five, 10, or 20 years — not just in capital growth, but in cold hard cash from income too.

I’d say that’s a bargain, but I’m a little biased about my own research!

So, for a limited time, I’ll go one better.

Try out your first year of Fat Tail Investment Advisory for just $149 today.

That’s $350 OFF the full price that many readers have paid to join, and a great deal if you want to dip your toes in and see if this is for you.

If you want to save even more upfront, you can take a two-year subscription below for just $249 today…

That’s a $749 saving over your first two years of membership.

Commit to three years today and all you’ll pay is $399 — and save yourself a huge $1,098 in membership fees in the process.

All options are a great deal in my opinion, but think of it this way… 

Every $1,000 my readers invested into West African Resources when I recommended it, would be worth $2,580 now — enough to cover your membership for multiple years…

Every $1,000 you put into Northern Star Resources at the time, would have grown into $2,970 within a few years…

Or just a $500 investment in Lovisa Holdings — the minimum you can make on the ASX — would have grown to $1,125…

That’s enough to get your initial investment back AND cover your Fat Tail Investment Advisory membership for three years in one go.

If you were to go see a financial planner, you could easily be charged $3,500 for the plan, plus another $1,500 for implementation upfront.

That’s five grand out of pocket — just after your first meeting.

After that, you’ll find they spend a lot of time pushing products on you that they get a kickback for…meaning you’re paying to get sold to.

With a Fat Tail Investment Advisory membership, you’ll get 12 months of unbiased, plain-speaking advice about how to grow your wealth.

And I encourage you to weigh up each recommendation I send you critically to see if it aligns with your goals.

Even if you don’t act on my recommendations, the macroeconomic analysis I share could shed a light on your own investment decisions.

But if you do, as you’ve seen, it could spell healthy dividend payouts for years to come, and the kind of capital growth that could be the difference between just getting by, and truly thriving in the years ahead.

How much would that kind of peace of mind be worth to you?

Is around 40 cents a day too much to ask now if it means freedom later?

I can’t make that decision for you.

But if you’re still undecided, I can potentially make it easier for you.

You’ll be covered by our money-back
guarantee for the next 30 days

Give Fat Tail Investment Advisory a try today, and you can put your membership to the test with no obligation for 30 days:

• Check out my full buy list of recommendations
  
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If your membership doesn’t exceed your expectations for ANY reason, just call our customer service team on 1300 667 481 and cancel.

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I don’t mind making this money-back guarantee because I’m confident that you’re going to enjoy everything you receive from me.

But like I said, you’re under no obligation to stick around if you’re not impressed.

If you do like what you see, simply do nothing.

At the end of your chosen term (one, two, or three years), your membership will be automatically renewed each year at the regular price of $499 each year thereafter, until you tell me otherwise.

Don’t worry, this auto-renew feature does not obligate you in any way, and you can turn it off at any time. It does however ensure that your access to Fat Tail Investment Advisory continues uninterrupted.

But we will give you advanced notice before it’s time to renew your subscription and any more money is debited form your account.

Sound fair?

I think so.

The final decision is yours…

Imagine for a moment that a simple shift in your investing strategy could pivot your entire financial trajectory.

Over the coming months, the dividends could begin trickling in, and slowly but surely, you see not just stability, but long-term capital growth.

The market still fluctuates. Peaks and crashes still make headlines. But through it all, your ‘Stealth Wealth’ portfolio remains your sanctuary.

Achieving long-term financial security like this, even in a market that’s plagued with uncertainty, is entirely within your reach.

And the confidence of knowing that you have a plan, no matter what the market does, can bring you an overwhelming sense of liberation, peace, and pride.

If you want the chance to experience that, then I invite you to join Fat Tail Investment Advisory today.

Click the button below, and you’ll be taken to a secure order form where you can enter your details and start your membership immediately.

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Thanks for reading today.

Sincerely,

Greg Canavan,
Editorial Director, Fat Tail Investment Advisory

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