Follow This “Smart Money” to Safe 10% Yields

The Contrary Investing Report

Investing and Trading News, with a Contrarian, Sarcastic Twist!

This is an example of a bad almost-10% yield:

When a Bullish Chart is Bad

Mattel’s (MAT) yield was rising for the wrong reason – because its stock price was dropping faster than its payout. Going forward, that shouldn’t be a problem. The firm officially suspended its dividend on Friday.

I warned you that the toy maker was a dividend disaster waiting to happen. In June’s edition of our Dirty Dozen: 12 Dividend Stocks to Sell Now report, we discussed how falling profits were going to be a serious problem for the stock’s payout:

When Mattel last raised its dividend, from 36 cents to 38 cents quarterly at the beginning of 2014, few people batted an eye.


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If you’re like most folks, you probably think it’s tough for any fund to beat the S&P 500, especially in a year when the index jumped some 15%.

But you’d be wrong.

Truth is a lot of funds are doing better, with over 660 beating the S&P 500. And the top-performers share 3 common themes that could tell us a lot about which sectors are poised to take off next year.

Let’s dig in. Along the way, we’ll hone in on the 33 funds that are cashing in as these breakthrough trends head higher.

Trend No. 1: Skyrocketing Faith in Technology (11 Funds)

Markets have always believed that technology will improve the global economy.…
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You’ve probably noticed that we’ve been spending a lot of time digging into closed-end funds lately.

The reason is simple: These ignored investments can set you up for 7%+ dividends and quick double-digit upside in one buy!

(In fact, Michael Foster, chief strategist of our CEF Insider service, just held a free webcast where he revealed his 5-step CEF picking system and 2 explosive new high-yield picks. If you missed it, click here to view a rebroadcast.)

But that doesn’t mean all of the 500+ CEFs out there are great. In fact, many boast dividend payouts they just can’t cover with earnings (see dangerous CEF No.…
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Exchange-traded funds (ETFs) tend to have low fee structures. And when investors try to combine ETFs with their high yield needs, they usually get what they pay for.

ETFs, simply put, are often “dumb money.” Their current yields may look good, but their long-term strategies are usually flawed.

Here are five funds paying up to 8.4% that are too dumb to trust with your retirement money.

iShares International Preferred Stock ETF (IPFF)
Yield: 4.1%
Expenses: 0.55%

International dividend stock funds typically sport similar if not higher yields than their domestic brethren, so you would imagine there would be a similar advantage in foreign preferred stocks.…
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Real estate investment trusts (REITs) are a must-have holding for any and all retirement accounts. The five REITs I’m about to show you are pivotal to both growing your nest egg, then delivering consistent cash to pay the bills once you’ve called it a career.

Slowly but surely, market research is starting to agree with me.

Wilshire Research delivered a report around this time last year summing up its research into REITs’ effect in retirement portfolios. The results were “dramatic.”

“One of the key findings was that the addition of stock exchange-listed REITs to retirement portfolios would have allowed a higher level of stable income for any given level of risk tolerance.”

One part of the study compared income-focused portfolios that excluded REITs with those that included them.…
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With over 500 closed-end funds (CEFs) on the market, how do you choose the best one?

It’s not an easy question to answer, because there are literally dozens of metrics any CEF investor should look at before buying.

Luckily, I’ve found a way to boil those down for you. In a moment, I’ll reveal the 5-point system I’ve carefully designed to pick winning CEFs for our CEF Insider service.

(If you joined me for my exclusive CEF Insider live webcast on October 25, you know about this proven system and you got 2 of my latest CEF investment ideas for 7.1% dividends and double-digit upside in 2018.…
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Today, the 10-year Treasury pays just 2.3%. Put a million bucks in T-Bills, and you’re banking $23,000 per year. Barely above poverty levels!

Hence the appeal of closed-end funds (CEFs), which often pay 8% or better. That’s the difference between a paltry minimum-wage income of $23,000 on a million saved, or a respectable $80,000 annually.

And if you’re smart about your CEF purchases, you can even buy them at discounts and snare some price upside to boot!

Unfortunately this rising rate environment has income seekers scared of CEFs. Many of my readers have asked me if they should bail on our high paying vehicles.…
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At CEF Insider, we regularly pound the table on top-notch US closed-end funds (CEFs).

And we still see America as our “go to” for huge yields, income and big gains. But if you take a pass on other parts of the world, you’ll miss a proven way to cut your risk (thanks to the tremendous variety in the global economy) and big upside too.

That’s why we constantly keep our eyes trained on the horizon. And today, one particular place has caught our attention: Asia.

For a long time, Asian stocks were a sucker’s bet, for a couple reasons.

The biggest?…
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If I’ve heard it once I’ve heard it a thousand times: if you want big dividends, you can forget about getting big price upside, too.

Clearly, whoever came up with this “wisdom” is clueless about closed-end funds, where hefty 7%+ yields are common. Fast double-digit gains, too—especially if you follow the one true CEF profit indicator I’ll show you now.

It’s called the discount to net asset value (NAV), and you can find it on any online fund screener. In plain English, it’s the difference between a CEF’s market price and its “true” value—or what its underlying assets are worth.

Sounds simple, right?…
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Most investors with $500,000 in their portfolios think they don’t have enough money to retire on.

They do – they just need to do two things with their “buy and hope” portfolios to turn them into $3,279 monthly income streams (or much more):

  1. Sell everything – including the 2%, 3% and even 4% payers that simply don’t yield enough to matter. And,
  2. Buy my 8 favorite monthly dividend payers.

The result? $3,279.69 in monthly income every month (from an average 7.6% annual yield, paid every 30 days). With upside on your initial $500,000 to boot!

And this strategy isn’t capped at $500,000.…
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