3 Trends We’ll Be Trading for 8%+ CEF Dividends (and Upside)

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3 Trends We’ll Be Trading for 8%+ CEF Dividends (and Upside)

Sure, 2023 brings a lot of uncertainties, but one thing we can be sure of is that buying stocks now—particularly if you do so through high-yield closed-end funds (CEFs)—will likely pay off in the long run.

I say that we CEF buyers stand to gain in the long run because, well, history is on our side here. Consider that even folks who bought the average S&P 500 stock at the height of the market in January 2020 are still up about an annualized 6%. That’s less than stocks’ long-term 8% average, sure, but it’s still a decent profit, all things considered.… Read more

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3 Ways to Retire on Dividends in 2023

A terrible 2022 is our income treat. There’s never been a better time to retire on dividends than right now.

Today we’re going to spotlight three diversified dividend funds that yield 8% on average. That’s right, put $500K into these tickers and we’re looking at $40,000 per year in payouts.

Or $80,000 on a million. You get the idea. This is what I call a secure 8% “No Withdrawal” Portfolio where we get to retire on dividend income alone, without ever touching our capital. (The strategy has become so popular that Tom Jacobs and I wrote a book on it!)… Read more

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A Smart Long-Term Strategy That Delivered 870% Dividend Growth

Today I’m going to show you a two-part dividend-growth strategy that actually made money for one group of investors in the disastrous year that was 2008.

Before we get into the specifics on this technique and an example stock, I want to level with you: I do believe that stocks are likely to head lower in the coming weeks.

That said, if we look one year out from today, I like our chances. But we’re going to give ourselves an added level of security by purchasing stocks with these two traits:

  1. Strong—and better yet accelerating—dividend growth, because a rising payout is the No.

… Read more

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These 3 “Dividend Dreams” Boast 268% Payout Growth, 12% Yields

Don’t lament the lack of a Santa Claus rally this year, because it comes with a bright silver lining: we dividend investors have more time to pick up big yields on the cheap.

Here’s why: America’s economy is still growing, with analysts booking forecasts for 3.7% earnings growth in the fourth quarter of 2022. What’s more, sales for S&P 500 companies are up 10%, and earnings have been rising all year.

Yet the market is still downbeat.

In other words, share prices are divorced from reality, and it’s only a matter of time before they correct. However, given the year we’ve had, it could still be a while before investors develop an appetite for stocks again.… Read more

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23 Massive Dividends for 2023: 7% to 18.2%!

Ten percent dividends are no joke.

We’re talking $50,000 in annual payout income on $500K. Or $100,000 in yearly dividends on a million dollars.

This is serious cash flow. And best of all, we’re talking yields—which means, if we buy right, we can sit tight, collect these payouts and keep our nest egg intact.

Generous yields give us a big advantage over vanilla investors, who fawn over traditional blue chips (paying 2% to 3%). That’s not enough. It’s easy math.

Let’s reference the million-dollar portfolio again. If we invest in the “broader market,” the S&P 500 yields 1.5%. It’s proxy, the SPDR S&P 500 ETF Trust (SPY), pays a meager $15,000 in annual income.… Read more

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2 Oil Funds (Yielding Up to 10.2%) to Sell Now

If you made money investing in oil this year, congratulations! But I have a warning: now is the time to take profits—especially if you hold the two oil funds we’ll discuss below.

Before we get to those, let’s talk a little more about oil’s big year. If you bought earlier in 2022, you managed to pick up on the only sector in the green this year—and well into the green, too: the Energy Select Sector SPDR ETF (XLE), a good benchmark for oil stocks, has climbed 55% so far in 2022, while the S&P 500 has headed the other way, dropping some 20%.… Read more

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Take These 104% Profits If You Got ‘Em

Let’s book these 104% profits today.

We’ll sell this winner and then consider a 9.3% dividend that could really soar in 2023. It couldn’t be any cheaper, either—this high-quality fund is trading at a 17% discount to fair value!

But wait, there’s more in the bargain bin. I’ll also share a 5.9% payer that is, likewise, trading for just 83 cents on the dollar—also 17% off!

More on these incredibly cheap dividends in a moment. First, the winner.

Remember when we “pounded the table” on Exxon Mobil (XOM) in April 2021? We were right. The then-6.1% payer was too cheap!… Read more

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How We’ll Build an Automatic “Dividend-Momentum Machine” in 2023

We dividend investors know that 2023’s going to throw us some curveballs. So let’s talk about a simple strategy that helps us buy more shares of our favorite stocks during pullbacks.

Because the truth is, the Fed is still hiking, inflation is well north of 2% and the economy is humming along. That last point is a headache for Fed officials as they need to “cool” the economy to get inflation down. That’s code for inducing a recession.

A New Spin on a Classic Strategy

This uncertainty is why I’m counseling caution when it comes to buying stocks these days. But if you are tiptoeing into this market, only do so if:

  • You have a long time horizon and …
  • You do so gradually, using our “modified” dollar-cost averaging (DCA) approach.

… Read more

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How We’ll Build an Automatic “Dividend-Momentum Machine” in 2023

We dividend investors know that 2023’s going to throw us some curveballs. So let’s talk about a simple strategy that helps us buy more shares of our favorite stocks during pullbacks.

Because the truth is, the Fed is still hiking, inflation is well north of 2% and the economy is humming along. That last point is a headache for Fed officials as they need to “cool” the economy to get inflation down. That’s code for inducing a recession.

A New Spin on a Classic Strategy

This uncertainty is why I’m counseling caution when it comes to buying stocks these days. But if you are tiptoeing into this market, only do so if:

  • You have a long time horizon and …
  • You do so gradually, using our “modified” dollar-cost averaging (DCA) approach.

… Read more

Read More

This “Battleship” 10.9% Dividend Is a Great Way to Buy Bonds in ’23

Today we’re going to delve into a powerful strategy that can “convert” the bounce we’re seeing in the bond markets into a cool $100K income stream in retirement.

Best of all, this simple approach can help you do this without touching a penny of your nest egg.

Obviously, doing this with a savings account is impossible; as per the chart below, you’d need $10 million to produce that yearly $100K if your account earns 1%. And we all know that most savings accounts offer far less these days.


Source: CEF Insider

The key, then, is to push our yield higher while managing risk.… Read more

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