3 “Hot Potato” Fund Buys for a Quick 10%+ Cash Stream

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These days I hear from a lot of CEF investors who are struggling to dig up cheap dividends. If you’re one of these folks, I get it. In fact, I’m right there with you!

Even for those of us who spend our entire day looking for CEF bargains, this market’s been a grind, making it tougher than ever to find high, reasonably priced dividends to recommend to you in CEF Insider.

(But we’re not out of luck here. Today we’re going to look at three 10%+ yielders that would make good speculative plays now, beyond the 13 attractively priced buy recommendations in our CEF Insider portfolio, which I continue to recommend for the lion’s share of your CEF investments.)… Read more

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If you’re waiting for a pullback to put money to work, look no further than small caps.

Early last week, the S&P stopped the bleeding on a harrowing multi-day 2.9% decline. By midweek, “big cap” investors had recouped more than half of their losses.

Was that it? My guess is yes, that was a wrap on the market’s mini-drama for another month or two.

Our intrepid Federal Reserve continues to print a whole lot of cash, which serves to backstop any pullback. The Fed is still buying $120 billion in bonds per month, which adds up to “real money” after a while—nearly $1.5 trillion annually!… Read more

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Stocks are floating higher daily, and that’s prompted a lot of readers to ask me when they should sell a dividend stock and take profits—and when they should let it run.

You’re probably sitting on some nice capital gains these days, too, thanks to the COVID rebound rally, and have asked yourself the same question.

Today I’m going to give you three indicators I always use when making buy/sell decisions for my Hidden Yields dividend-growth advisory. It’s a simple setup that lets a too-often-ignored factor—dividend growth—dictate our next moves.

Buy (and Hang on!) When Dividends Outrun Share Prices

If you’re a regular reader of my columns on Contrarian Outlook, what I’m about to say won’t surprise you: dividend growth is the No.Read more

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Markets took a dive (then posted a lightning-fast recovery) last week, a return to volatility that’s a good reminder to cast an eye over our dividend portfolios.

One thing to pay particular attention to is the amount of cash you’re holding. Because if you’re like many investors I’ve talked to recently, you’re holding too much of it—and that can cause a steady wealth drain that bleeds away thousands in returns every year!

Taking Money Off the Table—at Exactly the Wrong Time

Of course, having a healthy cash cushion is always a good thing. The trouble for most folks, though, is that they’ve been growing the amount of cash they have outside the market just as stocks have taken off.… Read more

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The explosion in data usage in recent years has led to good fortunes for Data Center REITs such as Equinix (EQIX) and Digital Realty (DLR). Even Blackrock decided that now was the time to invest in data centers, buying out QTS Realty (QTS) for a big premium last month.

Some investors might think the easy money has been made, but I’m here to say that the trends in data usage should lead to both strong capital returns and attractive dividend growth for the foreseeable future.

Here’s why.

The data explosion has been one of the more long-lasting secular trends in recent history and a big reason for the move by Blackstone in acquiring QTS.… Read more

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These dividends are about to break free from their regulatory shackles. Once the cuffs are off, we’re going to see payout hikes up to 100%.

Even the dividend growth “laggards” in this group are due for 11% and 17% hikes. As these payouts pop, their stock prices may certainly follow.

Here’s why.

For the past decade, income investors have overlooked the big banks. The Great Recession burned a hole in the brain of every retiree who lived to tell about it.

The U.S. Treasury bailed out America’s financial sector with the Troubled Asset Relief Program, which disbursed roughly $427 billion to buy toxic assets from (and even equity in) U.S.… Read more

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Hands up if you’ve heard of the Strategy Shares Nasdaq 7Handl Index ETF (HNDL). 

Right. I thought not. And I can’t blame you for overlooking this one. It’s a relatively obscure ETF, with a bit over $700 million invested across a number of assets (just what those assets are I’ll get to in a minute).

Nonetheless, HNDL is worth discussing today because it highlights a couple things we need to look out for when picking high-yield funds for our portfolios.

First up, the yield and the strategy: HNDL pays a 6.9% dividend today and promises diversification, both of which sound great.… Read more

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The market looks like it’s about to fall apart. Which means we contrarians will step in, and smartly bank more dividend for our dollar.

Some of us park our dry powder in cash. Others stash in conservative bond funds to juice a bit more yield out of our savings. Let’s talk about these bonds because this is an ideal time to say goodbye to them (for a while!)

As dividend investors, we are naturally allergic to cash. After all, why leave money in dollars earning nothing when we can move it to a stock or fund yielding something?

As I write our Contrarian Income Report portfolio yields 6.3%.… Read more

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It’s mid-2021, and stock prices are up, dividend yields are down, and you’re probably wondering what the heck to buy for a decent income stream as we thunder toward 2022.

It’s a head-snapping reversal from where we were a year ago, which makes now the perfect time to step back and plot our next dividend moves.

So let’s piece together our game plan for the rest of the year—and into 2022—by ranking five popular (and not so popular!) investments known for income from worst to first. You’ll find many individual tickers to put on your list here, too—including one yielding a healthy 6.8% today.… Read more

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One of the so-called “rules” of income investing is that you can get a high dividend or a sustainable dividend from a stock or fund—but not both.

And to be fair, that is true of some investments. But there are plenty of exceptions, too, chief among them an asset class that sports a little-known “trick” that gives us blockbuster 9% dividends that are more than sustainable over the long run.

The CEF Secret

That asset class would be closed-end funds (CEFs), and the “trick” ties into the fund’s discount to net asset value (NAV, or the value of the investments in the fund’s portfolio).… Read more

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