Private Credit Panic? This 7.7% Dividend Is Built for It

The Contrary Investing Report

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

Private Credit Panic? This 7.7% Dividend Is Built for It

This private-credit mess we’ve been talking about lately has raised a question no one wants to ask: Is 2026 shaping up to be another 2008?

It’s easy to see why some investors may be thinking along those lines. And it’s something I’ve been giving a lot of thought to lately. But here’s the twist: There’s another year I think 2026 resembles a lot more than 2008.

That would be 2023.

If you remember, that year was a buying opportunity in stocks—and to pick up the closed-end fund (CEF) we’re going to discuss today. In fact, both 2008 and 2023 ultimately turned into strong setups for this 7.7%-paying fund.… Read more

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5 ‘Healthy’ Dividends Paying Up to 14.1%

Healthcare stocks are selling off with the turbulence in the Middle East.

But, why? The best plays here are geopolitical-proof. They print money regardless of what’s going on in the world.

So this is a good time to check in on healthcare. In a moment we’ll review five dividends between 6.0% and, get this, 14.1%!

First, though, let’s unpack the reasons for the recent pullback. Back in August, I flagged how Medicaid cuts, health research funding, pharmaceutical tariffs and a cocktail of other headwinds had kept the sector pinned down for months. However these resilient companies have a habit of getting back up—and sure enough, healthcare went on a new tear, returning about 25% through late February.… Read more

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This Activist Battle Could Flip These 8.6%+ Payers to a Buy

Boaz Weinstein is a name many CEF investors know. He’s an activist investor who’s targeted CEFs in the past, particularly those he sees as underperforming.

Now, another closed-end fund (CEF) investor is adopting Weinstein’s tactics—and turning them on two of the activist’s own funds. This investor’s goal? Wipe out the discounts to net asset value (NAV, or the value of their underlying portfolios) on these two funds, and in doing so drive their prices higher.

It’s a fascinating story, and one that shows how, in the small world of CEFs, skilled activists sometimes turn their attention to each other.

Let’s back up for a moment.… Read more

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1,327 Bonds You Must Sell Now!

Be careful how you buy your bonds. The most popular tickers have four “fatal flaws” that’ll doom you to underperformance at best, or at worst leave you hanging in the event of a market meltdown!

Let’s pick on the widely followed and owned iShares iBoxx High Yield Corporate Bond ETF (HYG) as an example. It has attracted over $15 billion in assets because:

  1. It’s convenient and as easy to buy as a stock.
  2. It’s diversified (for better or worse, as we’ll see shortly) with 1,327 individual holdings.
  3. It pays well, at nearly 6% today.

The accessibility of funds like HYG appears cute and comfortable enough.… Read more

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My “Battleship” Plan for 8.2%+ Dividends (Paid Monthly)

The bombs continue to fall in the Middle East. But we contrarians know something the crowd always forgets at times like this:

The world is always burning somewhere.

At times like these, our Contrarian Income Report dividend strategy shines. Our portfolio yields 8.2% on average, and those dividends roll in no matter what the world throws at us.

The result? No need to sell into a downturn to get the cash we need. And we get the chance to go on offense, too, snagging dividends on the dips and boosting our income stream (and upside potential) as we do.

Rinse and repeat.… Read more

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How to Play the Oil Price Spike for 8.2% Dividends (Hint: It’s Not Oil Stocks)

The Iran conflict has, of course, sent oil prices spiking. And the tensions in the region are unlikely to end soon.

Wherever you stand on the conflict, let’s set that aside for a moment and look at the situation through an investment lens—specifically what it means for those invested in oil, either directly or through shares of producers.

It’s clear that anyone holding oil and oil-related stocks saw a bump in their share prices after hostilities broke out, and prices have bounced higher and lower since.

Let’s look at exactly what’s played out so far this year (as of this writing) from the oil-price side—through the crude-tracking United States Oil Fund (USO)—and the producer side, through the Energy Select Sector SPDR Fund (XLE).… Read more

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These BDCs Yield Up to 15.6%. But Can We Trust Them?

This high-yield sector is being taken to the woodshed by the Wall Street spreadsheet jockeys this year.

The contrarian opportunity? Big yields up to 15.6% in BDC Land. Some of these deals are trading for as little as 72 cents on the dollar.

Which means opportunists like us have been handed something rare: wild yields of 11% to 15.6% for as little as 72 cents on the dollar.

Business development companies (BDCs) are “Main Street bankers” because they do what Wall Street won’t: provide capital to small and midsized businesses that the big banks either ignore entirely, or won’t touch without demanding a firstborn as collateral.… Read more

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This 11.6% Payer Loves the Private-Credit Crisis

These worries around private credit are giving us CEF investors a nice “bonus”: They’re throwing a very positive light on our favorite 8%+ income plays.

After all, the CEFs we hold in the portfolio of our CEF Insider service offer transparency, high (and often monthly paid) dividends and attractive discounts, too, in part due to geopolitical worries.

We’ll get to a specific bond fund that’s giving us a generous discount and an 11.6% dividend in a moment. First, let’s take a closer look at what’s really happening with private credit, and the opportunity that concerns around it are setting up for us now.… Read more

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Have $500K? 24 Tickers for $40,574.93 Per Year in Dividends

$500K can be enough money to retire on. Even as early as age 50!

The trick is to convert the pile of cash into cash flow that can pay the bills. I’m talking about $40,574.93 per year in dividend income on that nest egg, thanks to 8%+ average yields.

These are passive payouts that show up every quarter or, in many cases, every month.

Meanwhile, we keep that $500K nest egg intact. Or, better yet, grind that principal higher steadily and safely.

Got more in your retirement account? Cool—more monthly dividend income for you!

We’ll talk specific stocks, funds and yields in a moment.… Read more

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Chaos Is Rocket Fuel for These 2 Stocks (and Their Dividends)

One thing is clear from the last few weeks: The geopolitical chaos never stops.

We contrarians get that. But the first-level crowd does not. When we’re hit with a war, snap tariffs or a pandemic (ugh!), most investors panic.

And the truth is, chaos—whether it’s war in Iran or fears that AI will erase whole industries—is coming at us faster than ever.

Most people think they can handle this wave of worry. But it pays to remember the famous Mike Tyson quote: “Everyone has a plan until they get punched in the face.”

True in life and investing. It’s just another way of saying that the same investors who think they can handle the latest “punch in the face” are often the first to turtle and sell low.… Read more

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