These “Secret” 9%+ Dividends Have Been Smart Buys Since 1927

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These “Secret” 9%+ Dividends Have Been Smart Buys Since 1927

Over the last couple of years, we’ve seen a quiet trend in investing—and today we’re going to tap into it with two funds yielding near 10%.

That’s right: enough to pay you back just shy of 10% of your initial buy a year in dividends alone.

What’s more, these two income plays—closed-end funds (CEFs), to be precise—have been around for nearly a century, with one dating from 1927 and the other having launched in 1929. That last date, of course, is notorious, as it heralded the start of the worst market crash in history.

I bring these two CEFs up now because their long institutional memory gives them a level of reliability that few other funds can match.… Read more

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My “Go-To” Way to Beat SPY, Bag 8%+ Yields

We launched our CEF Insider newsletter nearly eight years ago, in March 2017, and we’ve seen a lot since then: a pandemic, interest-rate swings, dramatic fights between fund managers and activist shareholders, and more.

But for me, the most exciting event has been the over 200% profit one of our long-time picks, a closed-end fund (CEF) called the Adams Diversified Equity Fund (ADX), has delivered to shareholders as of this writing.

Market-Beating Gains With ADX

With a 204.3% return currently as I write this, ADX actually beat the S&P 500 index fund that many American investors opt for: the SPDR S&P 500 ETF Trust (SPY), which is up just 171.5% over the same time period.… Read more

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This Amazing Investment Can Give You 10% Returns Practically Forever

You may have noticed that lately, the media is pumping out more stories on how the US economy and stock markets are leading the world.

Well, it’s true. Today we’re going to get into a few reasons why that is. We’re also going to look at how us income investors can use a special kind of income play, closed-end funds (CEFs)—many of which yield north of 9%—to cash in on America’s runaway lead, boosting our dividends and setting ourselves up for 10% annualized returns, basically forever.

We’ll wrap with a real “nuts-and-bolts” view of the factors that go into the ongoing rise in US stocks—uncovering fundamentals that few investors stop to learn (but can help us immensely, especially when a 2022-style pullback tests our nerve).… Read more

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How to Snag 8% Tech Dividends (While Dodging the Next Crypto Crash)

We need to talk about tech stocks. Because, yes, there is a risk of a pullback here. But there’s also a way for us to minimize that risk—and grab 8%+ dividends, plus price upside, as we do so.

First off, let me be clear that when I say “tech stocks,” I’m using the NASDAQ 100 as my benchmark. The index is about 60% tech, compared to about a third for the S&P 500. That higher level of tech exposure has allowed the NASDAQ to handily beat the S&P 500 over the long run (see the purple line below, showing the benchmark NASDAQ index fund).… Read more

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Why US Stocks Will Beat the World in 2025 (This 8.1% Payer Will Lead)

It looks like 2024 will end with a big gain for investors in US stocks, with the S&P 500 up 28% year-to-date, even better than my (admittedly optimistic) expectations: I saw a roughly 15% gain for the S&P 500 going into the year.

If this gain holds, 2024 will go down as one of the best years in the last 20, with only 2013 and 2019 doing (just slightly) better.

However, unlike those years, the momentum isn’t coming mainly from tech, with the benchmark Technology Select Sector SPDR ETF (XLK) actually trailing the market, with a 24.5% return year-to-date, as of this writing.… Read more

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This 7.3% Dividend Can Be Your Very Own “Wealth Manager”

I know that plenty of our readers are self-directed investors who love nothing more than to build—and run—their own portfolios. Digging into a fund’s prospectus and annual reports is something they look forward to.

But if you’re like many people, you look to a wealth manager to oversee at least some of your investments for you, or at the very least help with things like tax optimization, financial planning and setting up an estate plan.

There are, however, a few things we need to bear in mind when selecting one. For starters, while many wealth managers can help their clients set up a program that puts them on a path to financial independence, the reality is that wealth managers face intense competition, and that can provide a temptation among less-experienced ones to cut corners.… Read more

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Markets Are About to Get Choppy (This 8% Dividend Is Here for It)

I get it if you’re a bit wary of this latest market rally: We’ve got a volatile (to say the least!) election now days away. And while the Fed says rates are headed lower, there’s still a lingering uncertainty about where, exactly, they’ll land.

While a bit of anxiety is understandable, we do not want to make the same mistake many “vanilla” investors do at times like these: go all into cash.

For one, humans are terrible at predicting the future—remember those warnings of a 100% chance of a recession in 2023?—so safe to say a good number of today’s investment worries are unlikely to come to pass.… Read more

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This 3-Click “Mini-Portfolio” Holds Stocks and Bonds (and Yields 8.1%)

Having a diversified portfolio is pretty much Investing 101, right?

I mean, it’s one of the first things we all learn as investors. But there’s a problem here: Going for balance in “regular” stocks, bonds or ETFs can mean leaving income on the table.

To see what I’m getting at here, check out the average yields on two ETFs many people buy for stock and bond exposure. For stocks, I likely don’t have to tell you about the SPDR S&P 500 ETF Trust (SPY). It’s the popular S&P 500 tracker. And it yields a microscopic 1.2%.

There are plenty of options on the bond side, but let’s go with a fairly high-yielding ETF, the SPDR Bloomberg High-Yield Bond ETF (JNK).… Read more

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Why “High” Fees Could Pay Off When You Buy These 8%+ Dividends

When choosing between closed-end funds (CEFs), you might be tempted to put a lot of focus on fees. That makes sense. Nobody likes high costs eating into their returns.

But there’s more to CEF performance than just the expense ratio, and if you focus on buying the funds with the lowest fees, you might leave a lot of money on the table.

Because the truth is, there’s no clear relationship between fees and long-term returns. A CEF’s portfolio and the skill of its managers play a far greater role in determining its success than fees alone.

Breaking Down the Data: No Simple Relationship Between Fees and Returns

Let’s start with the data.… Read more

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This 1-Click Buy Crushes the 60/40 Portfolio, Pays 8% in Cash

Just a week ago, I wrote to you about the dangers of investing in a tired investor go-to called the 60/40 portfolio.

You know the one—the so-called “rule” that you should invest 60% of your holdings in stocks and 40% in bonds to reduce your overall volatility.

But investing this way—according to arbitrary standards like 60/40—is a recipe for leaving money on the table, especially when we’ve got a terrific way to get a much bigger dividend stream from stocks, which we’ll get to in a moment.

Your Odds of Long-Term Profits in S&P 500 Stocks? 100%

I’m coming back to this topic so soon because I recently read Ben Carlson’s fantastic analysis of the 60/40 portfolio.… Read more

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