2 “Volatility-Resistant” 7.3%+ Dividends to Buy as the Fed Pivots

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If there’s one thing we can be thankful for when it comes to the banking crisis, it’s this: at least it means fewer headlines about Fed rate hikes!

That’s actually a good thing for us, because, as the Fed statement hinted on Wednesday, the Fed is getting set to finally pivot. It’s the moment everyone has been waiting for all along! And it feels like almost no one is paying attention.

But we contrarian dividend investors are. And there are a couple of closed-end funds (CEFs) out there that are well-positioned to profit from the Fed’s quiet shift: the Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) and the Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX), which yield 7.8% and 7.3% respectively.… Read more

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There is another.


The Jedi Master had last week’s 8.4% dividend in mind, no doubt. David Friar’s Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) is an elite 8%+ payer worthy of a discussion.

But yes, Yoda, there is another. A rival ETF, also based on “the Qs”—the Nasdaq 100. The Force must be strong with this one—it yields 12.7%.

Is this for real? Or a Hollywood fairy-tale?

Well, let’s go back to David, QQQX’s manager. His elite 8%+ yield is no joke either. He’s doing something that many of us have dabbled with. He buys tech stocks and sells (“writes”) covered calls on his positions.… Read more

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Get ready, my fellow contrarians—QQQ “amateur season” is approaching! If you watch as much March basketball as I do, you’re about to hear this repeated hundreds of times:

I’m an investor in Invesco QQQ, a fund that gives me access to Nasdaq-100 innovations like volumetric video technology.
Invesco TV ad for its Nasdaq-100 ETF 

This quote, my fellow “March Madness” fans, is from a commercial for Invesco QQQ Trust (QQQ). Within weeks, it will be played nonstop. The ad features flashy camera angles with average investors “dropping knowledge” about the tech stocks they are proud to own via this ETF.… Read more

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There’s almost certainly a recession on the way, and we closed-end fund (CEF) investors have a big edge over mainstream investors.

That edge is our high, reliable (and often monthly) CEF dividends. Thanks to those mighty payouts (the average yield on our CEF Insider service’s portfolio is 9.9% today), we can bide our time, collect our dividends and buy bargain-priced CEFs on the dips.

In fact, we don’t have to wait long: I’ll give you a conservative CEF pick to consider below that yields 9%, holds oversold large cap tech stocks, like Microsoft (MSFT) and Apple (AAPL), and is a bargain, to boot.… Read more

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I’m always shocked when dividend investors ignore tech stocks. Which means I’m shocked a lot, because pretty well all income-seekers do it!

That’s because most folks still think of technology as the home of profitless startups, crumbling crypto platforms or zero-dividend names like Tesla (TSLA) and Amazon.com (AMZN).

But the truth is, big caps dominate the tech space, and on the whole, the sector is sitting on some of the biggest cash hoards on Wall Street. Apple (AAPL), of course, holds a legendary $202 billion. As of February, that amounted to more than 7% of the cash holdings of all S&P 500 companies!… Read more

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After a 30% drop this year, tech is the last sector most folks want to invest in—which makes it a superb hunting ground for us contrarian dividend investors.

Even so, we need to be careful in this Fed-spooked environment, where near-term volatility is certain, so we’re going to hedge our tech investments by focusing on a type of closed-end fund (CEF) that gives us the following:

  • An outsized 8%+ dividend that can see us through rough markets without having to sell shares, and …
  • The ability to actually profit when markets get rough.

We get both of these rare strengths in the Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX), a CEF whose vitals we’ll delve into in a bit.… Read more

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I’m an investor in Invesco QQQ, a fund that gives me access to Nasdaq-100 innovations like volumetric video technology.

My fellow hoops fans watching March Madness are seeing a million commercials for Invesco QQQ Trust (QQQ). They feature flashy camera angles with average investors “dropping knowledge” about the tech stocks they are proud to own via this ETF.

In the spot, the investor humble brags about her “volumetric” video technology investment. English translation: The use of many cameras at different angles to make a sporting event look three dimensional on TV. (Last week, ESPN broadcast a professional basketball game for the first time using this technology.)… Read more

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It probably won’t surprise you to hear that I’m hearing from a lot of investors who are concerned about protecting their portfolios, and their income streams, from the worrying times we’re facing today.

As the strategist of the CEF Insider high-yield investing service, I hear those worries, and I take them to heart with every CEF pick I make. And while talking portfolio strategy may seem a little inconsequential given the tragic events unfolding in the Ukraine, it’s vital that we do everything we can to look out for our families’ needs, especially now.

What’s more, by protecting and growing our income streams, as my colleague Brett Owens recently said, we can use our dividend dollars to help address some of today’s dire needs, whether it’s by donating to a charity helping the people of Ukraine or in the USA, by supporting family businesses that have been hit by the pandemic and, now, soaring prices.… Read more

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The Omicron variant is here—what does it mean for us dividend investors?

Simple—we’ll simply do the same thing we did the last time COVID spooked markets: buy tech-focused closed-end funds (CEFs) with huge payouts!

Members of my CEF Insider service will remember that we did just that in March 2020, at the trough of the market’s initial pandemic plunge, buying the BlackRock Science & Technology Trust II (BSTZ) when it yielded 7.3% and traded at a 6.6% discount to NAV. We then rode it to a nice 21% total return in just two months!

BSTZ Gave Us a Nice Profit in the First COVID Panic

Our first hint that tech is the right thing to buy now is came in last Friday’s chaos, in which all countries saw their markets dip, but interestingly only the tech-focused NASDAQ 100 (QQQ) fell less than 2%

That’s telling, because if governments around the world institute new shutdowns, the last sector to suffer will be tech.… Read more

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It’s a tired piece of “wisdom” you hear from personal-finance gurus over and over: you need to invest in low-cost, passive index funds to get the highest return.

Too bad it’s completely false!

Today we’re going to look at how obsessing over fees can cost you tens of thousands of dollars. Then I’ll name a fund that could get you big gains and pays a dividend north of 6%.

What’s more, this unusual fund, a closed-end fund (CEF), to be specific, gives you that steady cash payout while holding some of the biggest stocks out there—I’m talking about household names like Apple (AAPL) and Amazon.comRead more

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