NVIDIA? Microsoft? Google? These 7.5% Dividends Give ‘Em to Us (Cheap!)

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NVIDIA? Microsoft? Google? These 7.5% Dividends Give ‘Em to Us (Cheap!)

If there’s one thing that stands out about the market for our favorite high-yield investments—closed-end funds (CEFs)—in 2023, it’s this: individual investors are still too skittish to jump in.

That’s our chance, because this “lag” means CEFs’ prices haven’t taken off, and these funds are throwing off dividend yields in the same neighborhood they were at the start of 2022—around 7.5%, on average, today. And by being just a little picky (as we will be with the fund talk about a bit further on), we can amp those payouts up to 10%+.

Combine that with the discounts to net asset value (NAV, or the value of CEFs’ portfolios) available across the space, and we’ve got a shot at real upside, especially when you consider how far behind the S&P 500 that CEFs have lagged this year.… Read more

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This 18.9% Dividend Put the “RA” in Fraud

Years ago, we had a 15-month fling with a promising fund. It traded at a generous discount to its net asset value (NAV) and paid a double-digit dividend.

Plus, its price was rallying!

Brookfield Real Assets Income Fund (RA) checked all the boxes. Unfortunately, it failed the all-important “cash-flow smell test.”

RA’s NAV was declining. Not a good sign given the nebulous nature of its holdings.

The “realness” of RA ends with its name. More than half the portfolio is  securitized real estate credit.

And actual infrastructure? The “real assets” headline buyers think they are investing in? Just 30%!… Read more

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3 Back-to-School Buys for Dividends Up to 6.5% (and 91% Payout Growth)

Dividend deals are lining up for us across the board—and they’re likely to get better as September unfolds. It’s time to make our shopping lists!

We’ll start with three unloved corners of the market sporting the very best bargains. Then we’ll dive into three specific names and tickers.

  • “Growth utilities,” which are primed for upside as rates top out and roll over, cutting their borrowing costs—and “rate competition” from Treasuries and other fixed-income plays.
  • Cell-Tower Landlords, which run one of the most recession-resistant businesses out there.
  • Industrial real estate investment trusts (REITs), which can’t build and buy warehouses and factories fast enough to meet surging demand.

… Read more

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3 Back-to-School Buys for Dividends Up to 6.5% (and 91% Payout Growth)

Dividend deals are lining up for us across the board—and they’re likely to get better as September unfolds. It’s time to make our shopping lists!

We’ll start with three unloved corners of the market sporting the very best bargains. Then we’ll dive into three specific names and tickers.

  • “Growth utilities,” which are primed for upside as rates top out and roll over, cutting their borrowing costs—and “rate competition” from Treasuries and other fixed-income plays.
  • Cell-Tower Landlords, which run one of the most recession-resistant businesses out there.
  • Industrial real estate investment trusts (REITs), which can’t build and buy warehouses and factories fast enough to meet surging demand.

… Read more

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3 Easy Steps to Unlock Big 7.5% Dividends (Paid Monthly, to Boot)

Last Monday, we talked about the two biggest mistakes many investors make when buying high-yielding closed-end funds (CEFs). Today we’re taking the opposite tack and delving into three things to look for to pick the very best of these 7.5%+ payers for your portfolio.

The upshot? If all three of these strengths are present, you likely have yourself a winner. But first things first—let’s talk a bit about what sets CEFs apart. These funds are different from ETFs and mutual funds in two key ways.

  1. CEFs have fixed share counts and generally can’t issue new shares to new investors (hence the “closed” in the name).

… Read more

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The Steadiest Dividend Stocks Paying Up to 11%

Worried about a pullback? I don’t blame you.

Today we’ll discuss five of the steadiest dividend stocks on the planet. And let’s not confuse stability with penny pinching—these cash cows yield up to 11%!

How do we capture payouts without wild price swings? Two words: low beta.

Beta measures how much (or how little) a stock or fund moves compared to a benchmark—usually the S&P 500, but it depends. The benchmark is set at 1. Lower than 1 means an investment moves less; higher than 1 means it moves more.

Thus, beta is a de facto measure of an investment’s volatility.… Read more

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How to Tap This “Hated” Bull Market for 8.7% Dividends

If you haven’t noticed, I’m a bit of a data nerd. I could go on and on about all the economic numbers I watch for you every month, but these weekly articles just don’t give me the room. So I have to be selective.

There are hundreds (I’m not exaggerating; I’m up to 157 so far) of data points that prove the US economy is doing better than most people think, and that 2022’s doom-and-gloom was way overdone (and in many cases plain wrong).

Unfortunately, my editor would never let me cover all of them, especially in one article! And, let’s be honest, most people wouldn’t want to sit through 157 data points, either.… Read more

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This “Once a Decade” Dividend Bargain is Here, Again!

Cough. Cough. “This latest variant is legit,” I sputtered to my wife.

This was a school year and a half ago. The kids were home sick—again. Our little super spreaders had kindly brought home the latest coronavirus model.

Or so I thought. We soon learned it was Respiratory Syncytial Virus (RSV) going around town. RSV is highly contagious and, while the Internet lists its symptoms as mild, it wouldn’t be my choice for our next family illness. RSV lingers like an out-of-town relative without a return flight.

Generally, RSV runs its course. But it’s nearly impossible to avoid unless you avoid people—which may or may not be an option.… Read more

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My Advice: Buy This 4.6% Tax-Free Dividend as Powell Hits Pause

There’s a crop of outsized dividends out there that are absurdly underpriced—I’m talking 14%-off discounts here. And our opportunity to pounce has arrived.

I’m talking about municipal bonds, which, like corporate bonds, look set to bounce as the economy slows and interest rates top out—then start to move lower. As rates ease off, bond yields will dip, putting a lift under bond prices (as yields and prices move in opposite directions).

The upshot? AI-powered NASDAQ stocks will lose their luster, and bonds and bond proxies—including utilities and “munis”—will likely be the darlings of 2024.

Heck, even a modest decline in rates would be enough to boost these assets.… Read more

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Make These 2 Mistakes and You’ll Miss a Growing 9.6% Dividend

Over a decade ago, closed-end funds (CEFs) helped me achieve financial independence. Since then I’ve seen hundreds of other people use them to get there, too. I’m certain these unloved funds—payers of 8%+ dividends—can help you do the same.

Well, I shouldn’t say “unloved.” “Misunderstood” is more accurate.

As I write this, the CEFs tracked by my CEF Insider service yield 8.3% on average. But because the CEF market is small and off the radar to most folks, many don’t know what to look for in these high-yielding funds—if they know about them at all.

Today we’re going to change that by looking at a couple common mistakes people make when choosing CEFs, and how these errors can lead them to miss out on 8%+ yielders that offer sustainable payouts and strong gain potential, too.… Read more

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