My No. 1 “Buy Test” for 6%+ Paying CEFs

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My No. 1 “Buy Test” for 6%+ Paying CEFs

If you invest in closed-end funds (CEFs) or are thinking about it (and you should be!), I’ve got great news: there’s one simple indicator that tells you exactly when to buy (or sell) these high-yield income plays.

(If you’re a member of my CEF Insider service, you probably know what I’m going to say next.)

I’m talking about the discount to net asset value (NAV), which you can find on pretty well any fund screener. Today we’re going to see how one group of investors rode this simple metric to an amazing 662% in gains and dividends.

Your 1-Click CEF “Buy Alarm”

The discount to NAV is unique to CEFs.… Read more

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3 “Boring” Funds That Crush Stocks, Pay Up to 8.6%

Today we’re going to dive into the three best closed end funds of all time. These retirement-changing dividend plays—yielding all the way up to 8.6%!—have not only been crushing all other CEFs, but they’ve been demolishing the S&P 500, as well.

That’s just not supposed to happen!

After all, the pundits are constantly telling us that actively managed funds should not beat the S&P 500, and you’d be better off with a low-cost index fund like the Vanguard S&P 500 ETF (VOO).

But these three CEFs have been crushing VOO for years—and they’re on track to keep doing so.

That’s not all they offer—these funds also pay dividends more than three times higher than the S&P 500 average, boosting your nest egg while giving you a much bigger cash stream than you could ever get from index funds.… Read more

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This 1 Simple Move Could Turn $100K Into $474,800

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 actually 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 tech names like Apple (AAPL) and Amazon.com… Read more

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CEF Investors: Do This Now for 94%+ Upside (and 8.8%+ Dividends)

I’m about to reveal my very best strategy for pocketing 20%+ upside (and 7%+ dividends) from closed-end funds (CEFs) in the year ahead.

And in the long run, you could be in for truly monstrous gains, like the 94% return, and 8.8% dividend, I locked in using this simple plan just a few days ago.

I’m sharing this powerful tool with you now because this is the perfect time to get into CEFs. Unlike the (bubbly) S&P 500, many of these high-yield funds are cheap now—and spring-loaded for big “snap back” upside in 2020.

In fact, 380 of the roughly 500 CEFs out there—a full 75%—trade below their “true” worth as I write this.… Read more

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3 Top Tech Buys for 6%+ Dividends, 15% Gains

Almost everyone walked right by the three monster dividends I’ll show you in a minute: they yield up to 9% now, and we’re looking at 15%+ price upside too!

The media always downplays these picks—and never gives them the credit they’re due, especially when it comes to their massive dividend payouts.

But a few folks are starting to see these three funds as the source of steady retirement cash (plus upside) they are. So you only have a short time—I’m talking days—to make your move here.

I’ll unmask these three steady retirement dividends shortly (including one that even pays you every month, as opposed to every quarter), and rank them from worst to first.… Read more

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3 Steps to Save You From a 23% Dividend Cut

In February, I wrote this about the PIMCO Global Stocks+ and Income Fund (PGP):

“If you have PGP in your portfolio, this is the time to ditch it.”

Then in early April, this happened:

Warning Becomes Reality

What was behind this nosedive? A whopping 23% dividend cut! Worse, PGP owners who didn’t heed my sell call are now sitting on 11% price losses from the day the cuts were announced.

How did I know this calamity was coming?

When it comes to high-yielding CEFs, there are three warning signs that tell you a big crash is just around the corner, and each one was blaring before PGP’s drop.… Read more

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The 32% Dividend Buffett Would Love to Buy (But Can’t)

Don’t be fooled: imitating the picks of famous stock pickers is a road to retirement ruin.

I get it: gurus like Warren Buffett, Dan Loeb and Ken Fisher are the cream of the crop.

Too bad the big cash wads these guys toss around limit them to the lamest dividend investments. And you can bet almost all of them are missing out on one stock that’s paying a lucky group of investors an incredible 32% dividend!

Let’s dive straight into why following the pros’ lead is a big mistake. Then I’ll give you three ridiculously cheap stocks to grab for massive dividends—before their prices take off into the stratosphere.… Read more

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1,000%+ Gains and 7.2% Dividends in 1 Buy. Here’s How.

It’s a question that’s absolutely critical when judging a closed-end fund: how safe is the dividend?

This is particularly crucial when you consider the huge yields the average CEF offers compared to their ETF cousins. For the 2,918 ETFs available to US investors, the average payout is 1.9%, partly because 735 of these funds pay nothing at all. But even without those, the average ETF yield is still a pathetic 2.5%.

CEFs? For the over 450 covered by my CEF Insider service, the average yield is 7.3%, and only nine yield less than 1%. In fact, over 85% of CEFs yield more than 4%, while just 9% of ETFs do!… Read more

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$41,200 in Income on a $550k Nest Egg: Here’s How

It’s a question I get from investors all the time: “Should I take my dividends in cash or reinvest them through a dividend reinvestment plan (DRIP)?”

My answer: unless you want your cash sitting in your account earning zero, your best bet is to reinvest any dividend money you don’t need to pay your bills.

But we don’t want to practice “buy and hope” investing, either, whether we do it through obsolete DRIPs or the old-fashioned way.

When I say “buy and hope,” I mean putting your cash into household names like the so-called Dividend Aristocrats and “hoping” for higher stock prices when you cash out in retirement.… Read more

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3 Snubbed Post-Selloff Buys for 7%+ Dividends and Double-Digit Upside

Wondering if it’s too late to cash in on the late-2018 market mayhem?

If so, great news! There are still plenty of bargains to be had. And today I’m going to show you three great funds that are still cheap (though they won’t be for long).

The best part? Each throws off hefty dividends upwards of 7%!

Of course, when discounts like the ones on these three exist, you’re right to ask why. The answer is simple: because these three funds are closed-end funds (CEFs), they’re off most people’s radar. That means they’re slower to snap back from a market decline than, say, a fan favorite like Apple (AAPL).… Read more

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