An 8.7% Dividend I’d Buy for My Retirement Portfolio

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An 8.7% Dividend I’d Buy for My Retirement Portfolio

Here’s an idea that might sound just a little bit odd at first: You can actually get retirement-investing advice that’s too conservative.

That may not sound like a bad thing, right? After all, who doesn’t want to be extra sure they have enough to clock out?

The problem with this, however, is that being overly conservative has the very real consequence of keeping us in the workforce much longer than we need to be.

I bring this up because I was thinking of the “4% rule”—which points to 4% as the amount of your portfolio you can safely withdraw in retirement—the other day.… Read more

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The Surprising “Signal” These 8% Dividends Give Before They Soar

Closed-end funds (CEFs) are my No. 1 income plays for a reason that goes beyond their huge dividends: We can tap these off-the-radar (for now!) funds for big price gains, too.

We do this in my CEF Insider service using a time-tested CEF tactic: Buy CEFs trading at discounts to net asset value (NAV, or the value of their portfolios), then sell them at par or, better yet, a premium.

This isn’t rocket science: We’re following the oldest investor play there is: Buy low and sell high! To do it, we’re letting the discount to NAV, a critical CEF metric, be our guide.… Read more

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The Surprising “Signal” These 8% Dividends Give Before They Soar

Closed-end funds (CEFs) are my No. 1 income plays for a reason that goes beyond their huge dividends: We can tap these off-the-radar (for now!) funds for big price gains, too.

We do this in my CEF Insider service using a time-tested CEF tactic: Buy CEFs trading at discounts to net asset value (NAV, or the value of their portfolios), then sell them at par or, better yet, a premium.

This isn’t rocket science: We’re following the oldest investor play there is: Buy low and sell high! To do it, we’re letting the discount to NAV, a critical CEF metric, be our guide.… Read more

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Forget Wall Street’s “401 (k) Products.” Buy This Simple 9.2% Payer Instead

One of the biggest retirement-investment mistakes you can make is to make things more complicated than they need to be.

Funny thing is, Wall Street actually makes it easy to fall into this trap! Case in point: A new “financial product” from a group of companies, including BlackRock, that combines target-date funds and annuities.

We’ll get into why this isn’t a strong retirement option for those still working in a second. Then we’ll stack it up against a “straight down the middle” 9.2%-paying closed-end fund (CEF) that gives you the dividends, liquidity and growth necessary to fund a more comfortable retirement—maybe a lot sooner than you think.… Read more

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Tech Investors: This 9.3% Payout Is Cheap (and Growing Fast)

An unusual trend has hit Silicon Valley that’s running far below the radar: a big shift toward paying dividends.

We’re going to take full advantage by grabbing something unheard-of, even for die-hard tech investors: A 9.3% dividend that grows. 

That’s a real eye-opener for tech, to be sure. Because while more tech stocks are paying dividends these days—even long-time holdouts Meta Platforms (META) and Alphabet (GOOGL) now offer payouts—most of these are still tiny. (Meta and Alphabet both yield just 0.5%).

Of course, there are tech-dividend stalwarts that pay at least a bit more and offer long histories of payout growth, too, like Microsoft (MSFT) and Cisco Systems (CSCO), which yield 0.7% and 3.3%, respectively.… Read more

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This Media-Driven Panic Has Put Our Favorite 7%+ Yielders on Sale

Don’t believe the media’s latest line that stocks—and by extension 7%+ yielding closed-end funds (CEFs)—are oversold.

Far from it!

Truth is, stocks—and bonds and real estate, for that matter—are still oversold as a result of the 2022 market crash.

You can see that in action in the chart below, with the benchmark ETF for the S&P 500 (in purple) up 11.1% since the start of 2022, while corporate bonds (in orange) are basically flat. And real estate investment trusts (REITs)—in blue—are still in the tank, down about 16%.

Don’t Believe the Hype: All Our Favorite Assets Are Still Cheap

Fact is, those are all low numbers, even for stocks: the S&P 500 is up an annualized 5.4% over the last two years and change since the start of 2022, which marked the beginning of the market’s swan dive.… Read more

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3 Funds That Profit From “Economic Grumpiness” (Yields Up to 9.8%)

Here’s something you might be surprised to hear: according to the numbers, the US economy is actually doing well—and yet (almost) nobody wants to admit it!

It’s a misconception we income investors can exploit with the three high-yielding picks we’ll cover below.

It’s a weird turn of events, but it makes sense. Since the pandemic, itself an event of shocking turmoil, it seems that the chaos around the world is getting worse, and our fundamental hope for humanity makes us think that this just can’t be good for growth.

Except that’s not how things typically play out.

Global Turmoil = Faster Growth?… Read more

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These 3 Funds Could Pay You $4,000 a Month

Let’s go ahead and build ourselves an “instant” income portfolio throwing off a rich 8.8% yield. A yield like that, after all, could put a dividends-only retirement within our reach. Or at the very least help you scale back your day job and make up the difference with dividend payouts.

This, of course, is the essence of financial freedom, and my favorite high-yield assets, closed-end funds (CEFs), are our best play here. When we build our retirement with CEFs, we get to hold the top stocks, bonds and other assets, like publicly traded real estate investment trusts (REITs), out there.… Read more

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Why Stocks Will Crush All-Time Highs (and the 8%+ Dividends to Buy)

Don’t listen to the bubble worrywarts: even with the 2023 bounce, stocks are well off their late 2021 peak. In other words, they’re still cheap!

Stock Rebound Still Has Room to Run

We can get in even cheaper through discounted closed-end funds. Consider two leading equity CEFs, the Liberty All-Star Growth Fund (ASG) and the Eaton Vance Tax-Managed Diversified Equity Fund (ETY), which yield 7.8% and 8.2%, respectively.

Both deal in blue chips like Visa (V), Amazon.com (AMZN) and Microsoft (MSFT). ASG also adds some lesser-known midcaps for extra growth (hence the “growth” in the name), such as property manager FirstService Corp.… Read more

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This 7.8% Dividend Is Catching a Jolt From the “Cappuccino Effect”

I recently read a couple news pieces that brought what’s happening in the US economy these days into sharp focus. It’s a phenomenon I like to call “Cappuccino Effect.”

I’ll admit, it sounds too cute by half. But stick with me as we run through it, because I think it highlights a timely buying opportunity in 7%+ yielding equity closed-end funds (CEFs) whose portfolios are tilted toward consumer names.

Let’s start with inflation, which we all know ran hot last year. Some people didn’t expect this, while others thought it would last for a long time. Turns out both were wrong.… Read more

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