Buy a Fund With These 2 “Mystery Ingredients” for 10%+ Cash Payouts

Our Archive

Search completed

Buy a Fund With These 2 “Mystery Ingredients” for 10%+ Cash Payouts

When I talk to investors about closed-end funds (CEFs), I get an almost universal reaction: they simply can’t believe the outsized dividends—and upside potential—these funds boast are for real.

I’ll admit, if you’re not familiar with CEFs, their many benefits do sound a bit over the top: a pocket of funds that yield 7.5% on average, yet hold investments we’re all familiar with, such as shares of Alphabet (GOOGL) and Mastercard (MA)? 

The outsized payouts seem particularly unreal when you consider that most of these blue chips pay low (or no) dividends themselves. And that’s before we get into the fact that CEFs can hold a range of other investments beyond stocks, like corporate bonds, real estate investment trusts (REITs) and municipal bonds.… Read more

Read More

This 3-Buy Portfolio Could Let You Retire Fast (With $4,375 a Month)

Let’s say we want to quit working and attain financial freedom—not in decades, but in just a few years. Or heck, maybe less. How do we do it?

One “must-have” is the need to clock out on dividends alone. It’s the only way to retire without being forced to sell stocks into a downturn, shriveling our wealth and income at the same time.

To hit our “dividends-only” retirement goal, then, we’d need a minimum yield of 8% on our $500K. That way we’re assured of banking at least $40,000 in dividends a year. But with inflation still “sticky,” we’d ideally like to do better—pulling in around $50,000 or more.… Read more

Read More

These 3 Funds (Yielding 10.2%) Could Pay for Your Whole Retirement

With the recent pullback from the market’s high this year, we’ve got a nice second chance to buy some terrific dividend stocks cheap. But don’t waste your time with lame payers like General Mills (GIS), with its 2.5% yield. Or the miserly 2.1% you get from a so-called “Dividend Aristocrat” like McDonald’s (MCD).

Even though inflation is trending downward, it’s still at 5%. That’s well ahead of these pathetic blue-chip yields—and with the economy still performing well, it could be a while yet before it slows meaningfully from here.

Bottom line: We just can’t afford to own low payers like these any longer.… Read more

Read More

2 CEFs (Yielding Up to 9.9%) Set to Crush Stocks This Year

If you’ve missed out on this market’s roughly 6% gain this year, don’t worry. There’s an easy way to grab that same 6%—and more–and do so in safe dividend cash.

The key, of course, is closed-end funds (CEFs), our favorite high-yield vehicles, specifically the 8%+ payouts these funds offer.

Before we get to a couple of high-yielding CEF tickers (yielding 8.8% and 10.2%), let’s dive into the market’s gain and go sector by sector, because it tells a clear story of how some investors have seen that 6% rise and some have seen even more (or less!).

First up, if you’re not holding a significant amount of tech, you’re likely already behind, as the sector, a laggard last year, is up 16% so far in 2023.… Read more

Read More

This 3-Click “ETF Beater” Portfolio Could Pay You $50,000 a Year

Not many people realize this, but there’s an easy way to build a reliable 10% dividend stream (with price upside) that crushes anything stocks—or an index fund—could pay you.

I know that’s a bold claim. Truth is, ETFs are practically a religion for many folks. And it’s true that many active fund managers do fail to beat the index in stocks in any given year.

But there are also quite a few who do beat the index. Plus, many of them do it by offering a much bigger yield than the 1.8% your typical S&P 500 index fund, like the Vanguard S&P 500 ETF (VOO), yields.… Read more

Read More

These 9%+ Dividends Could Set You “Financially Free” Tomorrow

When I was a kid, I thought everyone on TV was rich. I know better now, of course, but it still strikes me when I hear stories of celebrities going broke, struggling to earn a living or taking on projects just because they desperately need to pay off some kind of debt.

It just goes to show that being famous isn’t enough to have true financial freedom.

That’s why I was intrigued by a recent interview with That ’70s Show star Ashton Kutcher, who has built a name for himself in the VC world by investing in tech startups. Kutcher’s string of successes is impressive: he was an early investor in Uber, Airbnb and Spotify, for example.… Read more

Read More

Why I’m Calling for Double-Digit Gains (and 9%+ Dividends) From CEFs This Year

From what I can see, this year is setting up to be another 2016—and that’s likely to hand us a buying opportunity in our favorite high-yield investments: closed-end funds (CEFs).

Here’s what I mean: after the market’s fast run higher in January, things have stalled out a bit. After the year we put in last year, this means we’re still left with some decent discounts to net asset value (NAV) on CEFs, as well as high yields (as CEF veterans know, payouts of 7% and up are common in the space, and most CEFs pay dividends monthly, too).

Right now, for example, our CEF Insider portfolio boasts a number of double-digit yields, reaching up to 12.3%.… Read more

Read More

This Fund Profits From China Fears (and Yields 9.5%)

Recent headlines have spurred some readers to write in about China—specifically what rising tensions between Beijing and Washington (no thanks to the former’s ham-fisted spy-balloon fiasco) might mean for their portfolios.

First up, we always need to bear in mind that stocks—and in particular my favorite way to hold stocks (through a high-yielding closed-end fund, or CEF)—really are a long-term investment. I know that sounds obvious, but it can be easy to forget when alarming headlines—a war or a pandemic, say—flash across our screens.

In other words, global chaos is really nothing new for stocks. The difference today is that we’re more connected than ever, so every move made by one of America’s adversaries is emphasized all the more.… Read more

Read More

Why This “RAVEN” 10%+ Dividend Strategy Will Win in 2023

These days, it seems like every investor is chasing that one big thing that will make them rich—the newest stock, technology, fad or whatever.

We contrarian dividend investors know these folks well—you probably have a friend or family member who chased down gains in crypto, NFTs, profitless tech or heaven knows what else over the last few years.

Heck, they may have even taken a poke or two at you about your “boring” dividend stocks and closed-end funds (CEFs)!

Then 2022 came along. And while everything got hit last year, we CEF investors had the last laugh, as we could use our funds’ 7%+ dividends to pay the bills.… Read more

Read More

3 Clicks to Start 2023 With a 10.5% Yield

Today we’re going to build ourselves a portfolio that hands us a 10.5% yield. And we’re going to do it with just three funds.

The appeal of a 10.5% payout is tough to deny: when you’re getting that much of your investment back every year in dividends, you’ll recoup the whole thing in less than 10 years. Everything else is gravy!

What’s more, two of the three funds below—all of which are closed-end funds (CEFs)—pay dividends monthly, so we’re getting our payouts in line with our bills. That’s unheard-of in the world of vanilla stocks. Almost all of them make us wait three long months for our next payout.… Read more

Read More

Categories