I recently viewed a presentation by Investing Daily’s Robert Rapier, who talked about making a 69% annual yield with “The Incredible Dividend Map” and his Utility Forecaster service.
Considering that the average dividend yield is between 2 and 5 percent, I was admittedly a bit skeptical. But I was also intrigued and wanted to find out how it could be possible to make such high returns and whether or not it was a worthwhile opportunity.
So I did my homework, and in this post, I’ll show you exactly what I found.
The Incredible Dividend Map: Stocks Yielding 69%?
The Incredible Dividend Map presentation starts with Robert Rapier pointing out a map of the U.S. which shows several companies across different states that pay significant dividends.
He then points out that, while some dividend stocks pay more or less, the average yield is 69% per year and that he has “37 of these cash cows” in his portfolio right now.
I have 37 of these cash cows in my portfolio right now… and for every dollar invested in them they are sending us 69 cents in dividends…Source: https://www2.investingdaily.com/plp-ufo-map-ex
Assuming this is true, how is it even possible?
Robert Rapier is a real investment expert with a good track record. So while his claim is bold, I don’t think he’s outright making it up.
Instead, based on what he says in the presentation, one of the reasons Robert has seen such significant dividend returns has to do with the types of companies he recommends.
And I believe another reason has to do with how he invests in these companies. But before we get to that, let’s start by looking at the types of companies he recommends.
According to Robert Rapier, he recommends “essential service” stocks, which are basically a mix of utility providers and companies that sell products customers are “virtually addicted to.”
For example, Robert says that some of his “biggest money-makers” are utility providers that sell water, electricity, and natural gas since people need these services and aren’t likely to stop buying them anytime soon.
And, as a side note, Robert says that some of these utility providers are “mandated by law to make a profit.” It’s unclear what he meant by this, but I did some research, and Investopedia does a great job breaking down government regulation’s impact on utility companies.
In particular, the article talks about something called a Power Purchase Agreement (PPA), which is a contract between a private utility company and a government agency that states the company must produce power to the government for potentially decades at a time.
In any case, Robert also recommends “essential service” stocks beyond utilities if he believes the company is selling something people “need.” For example, a telephone service or subscription to Netflix, Spotify, or a cable television service.
Just like old-school utilities that sell electricity, water, and natural gas, these new essential services are reliable growers. And they are also pretty much recession-proof.
Regardless of the difference from company to company, Robert says all of the companies he recommends have one thing in common – selling something people will not go without.
So that’s our secret: We only invest in companies that provide things people absolutely need… not passing fads.
So, to recap, Robert Rapier’s first “secret” to getting 69% yields appears to be choosing companies that sell products and services people need.
However, as mentioned, I believe there’s a second reason he’s achieved such high returns, which has to do with how he invests in these companies.
To be clear, I’m not privy to the details behind Robert Rapier’s investment strategy because I’m not a member of his Utility Forecaster service. But based on what he says in the presentation, I believe his strategy involves reinvesting dividend income to achieve compound growth.
What does that mean?
Well, earning dividend income is similar to earning interest in a bank account. The idea is to buy shares in a publicly-traded company that pays dividends regularly (for example, quarterly or yearly), which can serve as a type of income.
However, instead of spending the dividend income, some investors choose to reinvest their earnings back into the company by purchasing more shares, making it possible to earn more dividend income over time through compound growth.
Why do I believe Robert Rapier is suggesting this?
The reason I believe Robert’s strategy involves reinvesting dividends is that, to the best of my knowledge, there are no companies that pay anywhere near a 69% dividend. It is simply not a reality. As mentioned at the outset, the average dividend yield is 5% or less.
So it stands to reason that Robert’s strategy involves reinvesting the dividend income to achieve compound growth in one way or another. Especially since he (more or less) reveals this when talking about The Incredible Dividend Map report:
You’ll see how allowing the steady momentum of compounding to work its magic over time is now giving us a yield of 69% on our investing dollar.
Also, during the presentation, Robert makes it clear that the starting yield for a new investor in the stocks he recommends won’t be as high as 69%:
That’s an effective yield of 69% a year — every year.
Now before we go any further, I need to make something clear…
The starting yield for a new investor in these stocks won’t be this high.
This further confirms my theory because there’s no such thing as a “starting yield;” companies pay the same dividend yield to all investors, no matter who you are or when you start.
So, I believe Robert is basing his “effective yield of 69% a year” statement on continuously reinvesting your dividend income to acquire more shares over time. Because in this way, even if the dividend yield is relatively low, the dividend payment itself could theoretically grow to a point where it provides a double-digit return on your original investment in the years ahead.
That said, seeing anywhere near a 69% annual return could take a long time, and as with any investment, there are risks involved. So there’s no guarantee you’ll make that sort of return by following Robert Rapier’s recommendations.
How do you learn more about Robert’s strategy and recommendations?
Robert Rapier details his investment ideas in a special research report titled “The Incredible Dividend Map: 27 U.S. Cities Where Stocks Are Paying Us 69%.”
According to Robert, out of 200 companies he tracks, 37 “have been such superb performers,” and they “are now averaging a 69% yield” for him and his followers. And the above report details where they are located and provides you with a brief on each company.
Robert also says he goes into detail on the following five companies in particular within the report that “are perfect for starting your own high-yielding portfolio.”
- The Philadelphia water play that’s yielding us 72%
- 191 dividends in New Orleans (now yielding us 75%)
- The 9-bagger from New York City (now yielding us 67%)
- A North Dakota juggernaut yielding us 437%
- The Minneapolis cash machine (now yielding us 43%)
How do you access the report? The only way to access The Incredible Dividend Map report, and get Robert’s picks, is to sign up for a subscription to Utility Forecaster for $39.
So let’s take a look at what the service is about and how it works.
Overview of the Utility Forecaster Newsletter
Utility Forecaster is an investment advisory service headed up by Robert Rapier that the website says is “devoted exclusively to making you money in essential-service stocks.”
In other words, companies that sell services people need like electricity, natural gas, and water along with subscriptions people would find hard to live without.
At the core of the service are the monthly newsletter issues that contain 12 pages of investment insight from Robert Rapier. And according to Robert, he performs “three major tasks” in preparation for every issue.
First, he says he analyzes “the latest numbers on every essential-service stock in the nation” to give specific recommendations. Second, he strives to uncover the top growth prospects. And third, Robert says he puts the “cash flow under a microscope” to make sure the dividend is safe.
How well has the service performed since its inception?
According to the Investing Daily website, Utility Forecaster has delivered readers numerous 854% to 3,109% gains over the years. The site also says that readers of Utility Forecaster could’ve turned $10,000 into $1.6 million by following the recommendations.
Readers who put $10,000 into each pick in our growth portfolio when we recommended it, and held on as we advised, are now sitting on a gain of $1.6 million.
According to the website, the above is based on putting $10,000 into 22 stocks ($220K total). And while the exact time period this relates to is unclear, Robert Rapier says they’ve “been making money this way for 31 years,” so this could be based on 31 years of recommendations.
Also worth mentioning is that there appear to be two different model portfolios; one is called the “Growth Portfolio,” and the other is called the “Income Portfolio.” So what this means is that the recommendations are designed to suit different types of investors.
For example, one portfolio contains a list of stocks that Robert Rapier believes have more growth potential while the other focuses on income-generating stocks.
In any case, all told, the Investing Daily website says the average overall return for the service is 565.9%, which includes the Growth and Income Portfolio recommendations.
So, whichever way you look at it, Utility Forecaster has an impressive, long-standing track record. Especially since it was first launched in 1989 (back when Roger Conrad was the editor).
Of course, that doesn’t mean you’re guaranteed to make money as a subscriber. No service can guarantee results. But in my opinion, it does show that the service is legitimate and potentially worthwhile because not many stock advisories have such a solid track record.
Aside from the monthly newsletter and model portfolios, Utility Forecaster subscribers also receive updates on the recommendations and access to a member’s area on the Investing Daily website, where you can access everything you need to get started.
How much does it cost to join?
A subscription to Utility Forecaster is normally $149. However, if you join through the presentation, the cost to get started is currently $39 for one year. And this comes with The Incredible Dividend Map report.
However, there’s also the option to subscribe for two years at the cost of $78, and this option comes with some additional bonus reports:
- Broadband Billions
- Old School Stars: 4 Unstoppable Back-to-Basics Utility Stocks
- The Gatekeepers: Three Companies that Control the Future of Natural Gas in America
Also worth mentioning is that the service comes with a 90-day money-back guarantee. So if you sign up and find it’s not for you in the first 90 days, you can request a refund.
Who Is Robert Rapier?
Robert Rapier is the man behind The Dividend Map report and, based on my research, he’s been the editor of Utility Forecaster since 2018.
According to the Investing Daily website, Robert has a strong engineering background and has spent two decades in the fossil fuel and biofuel technologies space.
His profile states that he’s worked in various roles for energy companies across the globe, including firms in Scotland, Texas, Germany, and China. It also says he managed to pick up five separate patents, including one for a “breakthrough way to convert ethane into ethylene.”
As a result of his hands-on experience, the Investing Daily website says he now travels the world, evaluating startup energy companies for wealthy investors.
Robert’s insights have also appeared in The Washington Post, Forbes, and The Wall Street Journal, and he has been featured on both 60 Minutes and The History Channel. Not to mention, he has published a book called Power Plays: Energy Options in the Age of Peak Oil.
Safe to say, Robert Rapier is a genuine investment expert. And he seems to be well-suited to the Utility Forecaster service, considering it centers around the utility and energy sectors.
The Incredible Dividend Map is a presentation on the Investing Daily website featuring Robert Rapier, who talks about 37 dividend stocks that yield 69% a year on average.
As mentioned, I do not know of any companies that pay a 69% dividend.
So, based on my research, and common sense, I do not believe Robert is talking about investing in a dividend stock that pays a 69% annual yield (lol). Instead, I believe he’s talking about reinvesting your dividend income over a period of time to achieve compound growth.
Of course, the best way to find out what Robert Rapier’s strategy involves and what stocks he recommends would be to join the Utility Forecaster service.
For $39, subscribers receive 12 issues of the newsletter and a bunch of other resources aimed at helping you become a successful investor. So it could be worth checking out, especially if you’re interested in learning how to invest for dividend income.
That said, there are no guarantees the service will help you make money. And even though Robert says the service is designed for “high income, steady growth, and, above all, safety,” all investments carry risk. So, as with any service, there’s always a chance you could lose money.
Either way, while I do think the “stocks that yield 69%” pitch is a bit of a marketing gimmick, Robert Rapier is a real expert, and Utility Forecaster is a legitimate service, so it could be worth a look. Especially considering it’s such a long-running advisory with a strong track record.