A one-two punch to supercharge your retirement plans…
Millions of Americans Face a "Work Forever" Future — Here's the 14% Yield Stock That'll Save You
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, the "Oracle of Omaha"
I love lessons. Especially the lessons that reach beyond money — and hold true for life, too.
And Warren Buffett is a master at that.
Because what his folksy wisdom conveys is that you need an income strategy that's working all the time — even when you're not. It's a perpetual, "always on" income stream — one that isn't tied to you trading physical working hours for income (a paycheck).
If you don't heed Buffett's warning — meaning you can't break free of the proverbial time clock — you'll face that dire future: Your 60s will pass you by and you'll still be working until your 70s… 80s… or even 90s.
When you should be learning to play the hit "Let it Be" on guitar — because it's something you've always wanted to do.
When you should be checking off those "bucket list" items –like visiting Grand Teton National Park in Wyoming or seeing the Northern Lights in Alaska.
Or just making those special memories with your kids and grandkids; they deserve it… and so do you.
But according to a survey from the insurance and retirement services provider Prudential Financial, the results indicate most people are going to work until they die.
Particularly folks born between 1965 and 1980… the "Gen-X" crowd.
According to Prudential, those folks have less than $10,000 saved; even worse, 18% have nothing saved.
With Nvidia's dominance in AI, its trailblazing technology, and the escalating demand for AI applications it makes a robust candidate for continued growth.
But if you feel like you missed out on Nvidia's meteoric rise, and you don't want to wait around for a pullback, there are smaller players out there ready to breakout...
As humans, we live in the present — and "do the future" terrible. Swaths of Gen Xers hope things will somehow work out as they close in on retirement.
But hope isn't a strategy.
It's a trap.
If you don't save now and don't find those extra income streams, you really will have to work until you die.
That's the bad news.
But there's a good-news option: It's never too late to get started and never too late to build a financial foundation.
And the best way to get started is by owning stocks that pay dividends — the "hidden-in-plain-sight" income strategy that's a launching pad to financial independence.
You won't be reliant on an iffy Social Security payout, will shield yourself from inflationary spikes, and will be protected from whipsawing Fed policies.
And using our tools at TradeSmith, I can show you how to get started.
Looking through a few opportunities, I found one that jumped out at me for four reasons.
Reason No. 1: A Shareholder Focus: This company is a REIT and therefore required to pay 90% or more of its taxable income to shareholders annually in the form of dividends (income).
Reason 2: It Stands as a Giant: This income-generation opportunity topples the standard single-digit yields you may have become accustomed to seeing. This company I'm about to share has a yield that's over 14%.
Reason 3: We're Talking Quality: You never want to own a company solely for a high yield. Our Health Indicator, which operates on a simple green-light, yellow-light, and red-light system, places this in the Green Zone. You can think of a stock in the Yellow Zone as one to be cautious with, while the Red Light is indicating to stop and stay away. A stock in the Green Zone, much like a green light, says "Go," as it is in a healthy and investable state.
Reason 4: Income Isn't the Only Story: In addition to the massive yield, one-year target prices range as high as $25 — nearly a "double-your-money" proposition from where it's trading right now.
Now, I know what you're thinking.
"Keith, what's the catch? Everything sounds great, but why have I never heard anything about a company like this before?
Here's why it's not in the headlines.
It's a microcap company, with a market cap under $300 million. Microcaps can be risky because they are often newer companies that are just gaining traction — meaning they have unproven products and services and a limited track record. These stocks often have low trading volumes, making them tough to sell at the price you want.
It's also operating in an industry that's not federally legal — businesses are allowed on a state-by-state basis.
But I didn't pull this company out of thin air… quite the opposite.
Despite those challenges, the stock trades in our trusted Green Zone.
What's more, there's data in our Money Movers tool that you need to see.
Let's jump right in…
The Cannabis Landlord with a 14% Dividend Yield
On July 1, recreational cannabis sales kicked off in my home state of Maryland — and hit a reported $21 million (medical and recreational combined) in the first week alone. Maryland sales are forecasted to reach $275 million by year-end — and soar to a staggering $2.1 billion by 2027.
And although cannabis use is illegal under federal law, total United States sales are expected to reach $33.6 billion this year.
For some context, the 30 teams in the NBA generated $10 billion in revenue for the 2021-2022 season.
The global toothpaste market is worth an estimated $13.6 billion.
And toilet paper stacks up at about $16.32 billion.
That's right.
The cannabis market is already eclipsing things like the ticket and merchandise sales of the NBA, the dollars dropped on toothpaste, or the spending on such essentials as toilet paper.
And cannabis sales are climbing at a steep angle — and could reach $56.9 billion by 2028.
Now, most people would focus on the product sellers.
But all of you who know me understand that I'm always seeking that "edge."
And that "edge" here is AFC Gamma Inc. (AFCG).
Because of that federal ban on cannabis (even in states where cannabis is legal), banks won't take the risk of lending to cannabis companies and the potential accusation of "money laundering."
That's where AFC Gamma comes in: As a real estate investment trust (REIT), the company can originate, underwrite and invest in cannabis-company loans.
As of the first quarter, it's reviewing 15 cannabis deals.
Source: AFC Gamma Investor Presentation
You may also notice the 35 "CRE Deals in Review" on the chart above. That's commercial real estate, which is a smart strategy for AFC Gamma. It can take advantage of the loan niche in the cannabis market, while also diversifying and increasing its deal flow with other opportunities.
Through our Money Movers tool, I also saw a big reason for bullishness on this stock — insider buying activity.
There has been nothing but a sea of "green" of buying activity over the last two quarters:
On May 12 alone, our system recorded that the President and CEO of AFC Gamma each snapped up more than $1 million of the company's shares:
While there are a lot of reasons to sell a stock, there's typically only one reason to buy — you believe the price is heading higher.
That's what one especially bullish analyst call predicts, with a one-year price target of $25. From the price of $12.79 as of this writing, that's a potential gain of 95%.
Add in the 14.63% yield and you're talking about a one-two punch of capital gains and income that's almost unmatched.
That's the "powerful-and-direct" approach to generating income.
And it's the type of move we always try to keep you one step ahead with.
And there's a better way, still.
An income strategy that's supercharged by artificial intelligence (AI).
We have it. And we want you to have it.
Today.
You don't have to be a tech whiz or an investment pro to use it.
I'm convinced this brand-new income-generating, AI breakthrough could help anyone who feels left behind in reaching their retirement goal.
It can bring future-saving income to the millions of Americans who need that income boost.
And I just wanted to let you know that spots are filling up fast for the world premiere of TradeSmith's brand-new A.I. income tool on July 26, 2023.
For those who join us, you'll be one of the first people in the world who could gain access to our new machine learning instrument that identified instant income opportunities at an astonishing 97% accuracy rate in backtests.
TradeSmith is not registered as an investment adviser and operates under the publishers' exemption of the Investment Advisers Act of 1940. The investments and strategies discussed in TradeSmith's content do not constitute personalized investment advice. Any trading or investment decisions you take are in reliance on your own analysis and judgment and not in reliance on TradeSmith. There are risks inherent in investing and past investment performance is not indicative of future results.
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