16 Big Dividends We’re Avoiding Like Right Now

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16 Big Dividends We’re Avoiding Like Right Now

Few people pay much attention to the management team of a closed-end fund (CEF). But it’s becoming a much more critical factor driving CEF upside (and downside!), as well as these funds’ 8%+ dividend payouts.

I was reminded of this recently by a story that’s unfolding in the UK, where two asset-management firms are struggling a bit to hire CEOs. One is Scotland-based abrdn plc (SLFPF), whose shares have risen just 2.6% annually in the US on average over the last decade.

Compare that to a roughly 10% average year-to-date return enjoyed by the other major asset managers abrdn is competing with, and you get a good idea of what’s happening here: abrdn isn’t doing well enough to attract the best talent.… Read more

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How We’ll Protect (and Grow) Our 8% Dividends for the Rest of 2023

With the first quarter behind us, now is a good time to ask ourselves if stocks—and especially 8%+ yielding closed-end funds (CEFs)—are getting just a little ahead of themselves.

Let’s start with stocks, then we’ll get granular, looking at how CEFs (which usually lag stocks by a few weeks) are setting up as we move deeper into Q2.


Source: CNN

One glance at the CNN Fear and Greed index and you could be forgiven for thinking things are getting a bit too hot out there. This indicator— a useful indicator of investor sentiment—was pegged at extreme fear for most of 2022, so the reversal was inevitable.… Read more

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5 Discounted Monthly Dividends Paying up to 11.4%

Every legendary investor worth their salt has some sort of phrase to describe what investors should be doing right this very minute.

“Be fearful when others are greedy, be greedy when others are fearful.”

“Buy when there’s blood in the streets.”

Largely speaking, most stocks on the market are on sale to some extent. And sure, we could go out and make a few targeted bets on these bargains.

But I’d prefer to squeeze even more value out of the stock market.

Enter closed-end funds (CEFs).

Why CEFs Are Our Best Option Now

If we were to go out and buy an exchange-traded fund (ETF) that invests in, say, the Nasdaq Composite or Russell 2000, or really any area of the market you felt was underpriced, you’d be able to enjoy in the collective discounts of all their holdings.… Read more

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The 7 Steps I Always Follow for 8% Dividends in CEFs

Today, the 10-year Treasury pays just 2.4%. Put a million bucks in T-Bills and you’re banking $24,000 per year. Barely above poverty levels!

Hence the appeal of closed-end funds (CEFs), which often pay 8% or better. That’s the difference between a paltry minimum-wage income of $24,000 on a million saved or a respectable $80,000 annually.

And if you’re smart about your CEF purchases, you can even buy these funds at discounts and snare some price upside to boot!

The market’s fast run-up since January 1 has made cheap CEFs just a bit harder to find. And some CEFs have become so pricey that, if you hold them, you should consider selling before their premiums fall to earth.… Read more

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The Incredible 11.2% Dividend Everyone Has Missed

Today I’m going to take you inside the most disrespected, criticized, lambasted and just plain ignored investments on the market today.

Why would I do that?

Simple. Because if you’re not as rich as you’d like to be, these unloved income plays are the perfect way to get you there.

I’m talking about closed-end funds (CEFs), a group of investments that, with a bit of effort (which I’m happy to put in for you) can hand you big, fast upside, safe cash dividends of 8% and higher—or both.

So why do so many investors see CEFs as perennial money losers?…
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