Toss the Spreadsheet! Here’s How to Manage Your Dividends Like a Boss

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Toss the Spreadsheet! Here’s How to Manage Your Dividends Like a Boss

Three weeks into 2024 and here’s the state of play: rates have fallen and likely headed lower. That’s going to light a fire under our favorite dividend payers.

It already has!

Think back three months, to mid-October. Back then, 10-year Treasury yields sat at just under 5%. Now they sit at 4.1%—a 19% drop! It’s been great for our dividend payers, as income-hungry folks start to look for other options.

That shift has just started, and it’s got plenty more room to run.

Consider the 8.5%-paying Cohen & Steers Infrastructure Fund (UTF), a closed-end fund (CEF) that’s a classic dividend play, holding shares of “recession-resistant” utilities like NextEra Energy (NEE) and Southern Company (SO).… Read more

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12% Dividends, Monthly Payouts, Big Discounts. These 3 Funds Have ‘Em All

Today we’re going to dive into three funds that, put together, could hold nothing less than the key to financial freedom.

I know that sounds like a bold claim, but it’s tough to argue when you’ve got a three-fund “mini-portfolio” that does all of the following:

  1. Pays a 12%+ yield that’s sustainable over the long term.
  2. Pays dividends monthly, making it even easier (and more convenient) for these funds to completely replace your salary.
  3. Offers a discount today, providing an opportunity for capital gains tomorrow.

Here’s how the numbers work out on this three-fund setup, consisting entirely of a special kind of fund called a closed-end fund (CEF): a 12% yield means you’re getting $100 per month for every $10,000 you invest.… Read more

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Feels Like the First Time: 5 Fresh Dividends with High Targets

I was at the State Fair with one of my best friends from Elementary School. We were 2,000 miles from our old school stompin’ grounds. And my buddy had been, ahem, a bit overserved.

“It feels like the first time!” he belted alongside Lou Gramm, the former lead singer of Foreigner. No longer kids, we had matured. Now we were slamming beers within sud-splashing distance of the Lou Gramm Band.

We’ll channel Lou and Foreigner today as we consider five fresh dividends. They don’t happen often but, when they do, it’s a special moment. A sign of actual corporate maturity. Management saying we’re no longer kids chasing growth, we’re going to start dishing cash to shareholders.… Read more

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11% Dividends for 10% Off. Inside 2024’s Biggest Buying Opportunity

Don’t buy into the fear around office real estate investment trusts (REITs). Truth is, this is our moment to buy strong REIT dividends. We’re going to do it with a well-diversified 11.4%-yielding closed-end fund (CEF) trading at a ridiculous bargain.

Our opportunity lies in the fact that the fear around office landlords (Will the work-from-home crowd ever return? Will lease rates plummet? Is any of that priced in?) completely misses the point for investors.

Negativity Around Office REITs Has Been Off the Charts

To get a sense of the scale of fear around office REITs, consider that Fortune magazine, despite its staid reputation, told us nine months ago that the “office real estate apocalypse” was here and “even worse than expected.”… Read more

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My “Made for 2024” Dividend Plan

Many investors are worried. About a hard economic landing. The Federal Reserve keeping rates high. The 2024 election.

Fair enough. Fortunately, the headline worries are usually priced in. The popular “threatdown” rarely thwarts the market.

On the other hand, we contrarians fret about the scenario that may come out of left field. We worry not about a hard landing. Or a soft landing. The underappreciated risk is the no landing that reignites inflation.

Rates down, assets up—let the good times roll! It will be fun for a while. Until prices skyrocket again.

Fed Chair Jay Powell has officially pivoted from his hawkish stance.… Read more

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3 Toxic ETFs to Sell Yesterday (and 3 Picks Growing Payouts Up to 420%)

Look, I get it: many folks love ETFs, mainly because of the cheap management fees.

I mean who doesn’t love a deal? And it is true that ETFs’ fees are a fraction of those levied by the typical mutual fund or closed-end fund (CEF).

Trouble is, most ETF buyers get exactly what they pay for! Some of the worst performers in ETF-land are dividend-growth ETFs, which sound like a nice “1-click” way to load up your portfolio with soaring payouts.

Too bad they can’t stop tripping over their own feet!

Look at how three major dividend-growth ETFs, the iShares Core Dividend Growth ETF (DGRO), Vanguard Dividend Appreciation ETF (VIG) and ProShares S&P 500 Dividend Aristocrats ETF (NOBL), have fared in the past year:

Stocks Lap Dividend-Growth ETFs

As you can see, the S&P 500 (in orange) blew past this trio, with a 24% total return.… Read more

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Big Payouts, Lousy Returns: Avoid These Funds (Yielding Up to 8.9%) in ’24

Here’s the thing about high-yield closed-end funds (CEFs): sometimes a CEF will seem to have all the earmarks of a terrific investment: high (and monthly) dividends, reasonable fees and reputable management. But it’ll still come up short.

We, of course, love CEFs and see them as the critical pieces of our income portfolios. The portfolio of my CEF Insider service, for example, holds plenty of top-quality buys and yields 9% as I write this.

But when picking these funds, we need to make sure we don’t let a big name, high yield or so-called “low” fees dominate our thinking. We also need to look deeper, at factors like past performance and even management’s track record with its other funds.… Read more

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As Inflation Eases, These Dividend Stocks will Soar

As inflation calms down, these dividend stocks are going to fire up. I’m talking about five stocks with payouts popping between 33% and 100% per year.

And these are safe, profitable businesses powered by good ol’ fashioned cash flow. I know, what a concept. These stocks should never be cheap, but they are, thanks to the recent stock market panic in September and October.

This five-pack highlights the power of a phenomenon called the “dividend magnet.” This is where payout growth pulls a stock’s price higher regardless of whatever the broader economy is doing.

Dow component UnitedHealth Group (UNH) is a perfect example of the dividend magnet.… Read more

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My Outlook for Tech Stocks (and One 6.2%-Paying Fund) in 2024

The first week of 2024 was a rough one for stocks—and that, oddly enough, suggests we might see a good year for stocks in 2024.

But as we’ll discuss below, recent market moves also suggest some parts of the technology sector are starting to look just a little overbought now—especially one 6.2%-yielding tech-focused closed-end fund (CEF).

I know that’s a lot to lead off with, so let’s break it down.

A week and a half before Christmas, and before last year’s Santa Claus rally, I wrote that we didn’t want a Santa Claus rally to end ’23. That’s because these year-end market bounces have historically led to the following year to be weaker for the markets.… Read more

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11 Easy Rules for Dividends Up to 11% with Safe CEFs

If you don’t like these 8%, 9% and even 10%+ dividends, well, you’re not really an income investor.

That’s right. As I write, select closed-end funds (CEFs) yield 10.8%.

Ten. Point. Eight. Per. Cent!

We contrarians are locking in yields up to nearly 11%. When the market seas become choppy, we’ll stick to our script. Here it is, broken down in an 11-step playbook for these 8%, 9%, even 10.8% yields.

CEF Rule #1: Buy the Best 

Fixed-income behemoth DoubleLine runs some well-known big funds as well as smaller, lesser-known CEFs. There’s a raging dividend party in the ignored CEF corner of DoubleLine’s portfolio, with yields up to 10.8% via

DoubleLine Income Solutions Fund (DSL).… Read more

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