This Deceiving Chart Is Costing You Money (Guaranteed)

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I saw an interesting tweet the other day—someone commenting on how lots of people have no qualms racking up $100,000 in debt to get a university degree but think putting $5,000 into the stock market is too risky.

The foolishness of this thinking is evident to anyone familiar with the stock market. Five-thousand dollars in a bland S&P 500 index fund like the SPDR S&P 500 ETF (SPY) would now be worth $12,175 after just a decade. That’s a lot of money to give up on just because of fear!

And don’t be fooled: this kind of thinking isn’t prudence. It’s fear.…
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There are 20 elite closed-end funds (CEFs) that have proven their toughness in the last 10 years (including through the Great Recession, the most brutal test of all) and have still handed investors market-beating returns.

And below we’re going to look at all 20 of them.

So if you’re looking for a proven dividend payer that will hold its own through today’s troubles—trade wars and rising interest rates, to name just two—these 20 funds are a great place to start.

The Toughest of the Tough

Some of these cash machines throw off dividends of 6.8% or more (and one I’ll tell you about in a moment pays a sky-high 12.4%!).…
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It’s all but official: the Federal Reserve will hike rates three times this year, and almost certainly four. If you want to protect your portfolio (and profit), now is the time to prepare.

I told you what’s driving this inflation surge—and how long it may last—in my article last Thursday.

Today we’re going to look at 2 high-yielding closed-end funds (with a massive 7.9% average income stream between them). But before we get to that, let’s kick in the doors on the most foolish myth in investing.

The Backward Fear That Handcuffs Investors

I’m talking about the ridiculous belief that higher interest rates are bad for stocks and corporate bonds.…
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There’s one question I’ve been getting from a lot of folks lately. You may have wondered about it yourself.

It’s simply this: “Is the stock market even safe anymore?” Or another, less anxious, variation: “How can I bank fast returns while slashing my risk?”

I have great news. As I wrote back on February 8, this selloff was way overdone, and now is the time to be buying—not selling!

Better still, there’s a class of totally ignored funds that fits the bill, and many of them are screaming bargains now. That puts us in line for a big, quick price pop while they pay us up front with a massive income stream.…
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Whenever a pundit says they’re going to show you some high-yield dividend picks, we all know what’s coming. Telecoms like Verizon (VZ) and AT&T (T). Maybe a utility or two, like Southern Company (SO). Sure, they’re big, they’re safe … but even when they’re down, they’re still wildly crowded trades.

So let’s explore five dividend stocks with bulletproof yields up to 9.3%. Their payouts are high because their stock prices are low – thanks to these firms’ undercover status.

I love “hidden” dividends so much that I’ve dedicated one of my premium services – Hidden Yields – to them.…
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There are plenty of great reasons to invest in a closed-end fund, including my No. 1 reason: dividends! With CEFs routinely throwing out yields of 6% and up—often paid monthly—they’re tough to beat in a world where Treasury yields are stuck around 2.4%.

If you’re new to these funds, your timing couldn’t be better. I recently wrote a primer on CEFs that gives you all you need to know.

And today I’m going to show you 16 CEFs with juicy yields all the way up to 11%.

But before we get to that, we’re going to zero in on the one thing that makes the difference between a winning fund with a stable—and growing—dividend and a dangerous dividend trap: management.…
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It’s one of the first questions readers usually ask me:

“Don’t closed-end funds’ high dividend yields make them dangerous?”

It’s a good question, with CEFs offering yields of 8% or more. It’s also a general (but far from certain, as I’ll explain shortly) rule that higher yields bring a higher risk of a dividend cut.

Take Frontier Communications (FTR), a stock my colleague Brett Owens sounded the alarm on in April.

The telecom provider was yielding a whopping 16% before it slashed its dividend in June 2017. The stock plunged when the cut was announced:

Slashed Dividend, Slashed Share Price

FTR is yielding a whopping 20% now, thanks to its collapse in price (because you calculate yield by dividing the annual dividend rate into the current share price).…
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If you want to find the best high-yield opportunities on Wall Street, you don’t follow bright neon signs – you turn over rocks.

Years of research has shown that the most widely recommended names are typically overcrowded trades, killing any chance you have at wringing out any value. Worse, analysts’ and pundits’ picks are often so conservative that they actually pose a danger to your retirement by producing sleepy returns and only so-so dividends.

That’s why I love closed-end funds (CEFs) like the three high yielders (between 7% and 9.5%) that I’m going to show you today. They garner no media coverage, so they’re less likely to develop into bubbles.…
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Today I’m going to show you how to get a livable income stream from a $300,000 nest egg—while growing your savings at the same time.

Sounds impossible, right?

Wrong.

What’s more, we’re going to pull it off using just six funds. When we’re done, we’ll end up with a simple, diversified portfolio that throws off a nice, steady 7.9% dividend yield!

And if you’re worried that this outsized yield could come at the cost of a weak total return, don’t be, because these funds have delivered 12% per year over the past decade.

Before I get into these six funds, let me show you what numbers like these can mean for you: if we start with an upfront investment of $305,000 in this portfolio and leave it alone for 10 years, we can expect our capital to explode to nearly $1 million in a decade.…
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My friend is a young 41-year old millionaire. And the poor guy is basically broke!

Meanwhile there’s a conservative yet savvy grandma in the Midwest raking in more monthly income than my boy, on a modest $387,000 in savings.

What’s her secret? We’ll get to that in a minute. First, let’s lament my man’s millionaire curse.

His stash of cash does him no good, other than giving him something to worry about. His million-dollar problem? He doesn’t know how to turn his green pile into a steady, sustainable income stream.

And since he believes in efficient markets, he has no interest in exploring investments that could pay him 7% or 8% annually – providing him with $75,000+ in yearly income while leaving his capital intact (or better than intact) to boot.…
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About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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