These 3 Ignored Funds Yield 8.1% (and Crush Stocks)

Our Archive

Search completed

These 3 Ignored Funds Yield 8.1% (and Crush Stocks)

Let’s be honest: after the year we’ve just put in, we’re all exhausted. But we can’t let our guard down. Because at times like these, it’s easy to let alarmist headlines skew our buy and sell decisions.

Worse, the clamor, and almost always incorrect market predictions that dominate the news these days, can lure you away from the reliable dividend payers you need to fund your retirement.

I hate to see that happen to investors—especially when they could easily use high-yield closed-end funds (CEFs) to retire on dividends alone. I’ve got three “low-drama” CEFs that can get you there, thanks to their outsized 8.1% average yield.… Read more

Read More

Here’s Our “Recession 2023” Game Plan (for Cheap 8.4% Dividends)

It’s nearly 2023, and we’re on the precipice of something that’s never happened in our lifetimes: a recession is coming—and when it does, it will surprise no one.

Believe it or not, that’s good news because it lets us buy stocks—and high-yield closed-end funds (CEFs)—cheap right now. We don’t have to wait months for the recession to subside.

I’ve got an 8.4%-yielding CEF for you to consider below. It’s discounted twice: once because the stocks it holds, which include S&P 500 standouts like Visa (V), UnitedHealth (UNH) and Amazon.com (AMZN), have sold off, and second because the fund itself trades at a rare discount.… Read more

Read More

This So-Called Inflation Hedge Is a Disaster. Buy This 8.9% Dividend Instead

For some folks, it’s almost a reflex to buy gold when inflation hits or volatility ramps up. In times like those, they simply flock to the yellow metal—no questions asked.

But buying gold as a safe haven is a terrible idea, for one simple reason: it doesn’t work.

The dumpster fire year we’re living through now provides an excellent example of gold’s ineffectiveness as an inflation hedge: while inflation soared (it sits at 8.3% as of August), gold has gone the other way, plunging 6.4% since January 1.

That lousy performance isn’t just a one-off. Gold has actually fallen 7% in the last decade.… Read more

Read More

Contrarians: How We’ll Tap This Market Bounce for Cheap 7%+ Dividends

Over the last few months, I’ve seen dividend investors make the same mistake over and over: they constantly forget that the stock market always looks forward, not backward.

Making this easy blunder now could cost you a chance to grab cheap 7%+ dividends in closed-end funds (CEFs)—and potentially set yourself up for years of steady cash payouts and price gains.

Shaking Off “Investor Shell Shock”

I know it’s tough to believe in this market bounce after the many cruel twists stocks have dealt us this year. And to be honest, it could take a long time for the market to fully find its footing.… Read more

Read More

These 11.1%-Yielding CEFs Could Bankroll Your Retirement

Thanks to the selloff, it’s possible to buy closed-end funds (CEFs) at such high yields that we can do what seemed unthinkable just a few months ago: build a CEF portfolio that will pay $5,000 a month in dividends on about $540k invested.

That’s an 11.1% average yield!

This, of course, is because many CEFs have been caught up in the selloff, and yields move inversely to prices. So a fund that may have yielded, say, 7% six months ago (which is about the long-term CEF average) is suddenly yielding a lot more now.

In addition, it’s possible to build an income stream this big with just three CEFs.… Read more

Read More

3 “Inflation-Fighter” Dividends That Pay $958 a Month on Every $100K Invested

There’s a glaring disconnect out there between the health of the economy (still strong) and the mood of investors (terrible). It’s opened a window for us to grab some solid closed-end funds (CEFs) throwing off yields of 8%+.

This is especially true if you’re investing for the long term, which, if you are investing for income like this, you should be.

We’re going to talk about three such high-income plays today (one of which offers an 11.5% payout that’s growing) and dive just a little deeper into why this opening exists for us.

Fast Growth + Worried Investors = Best Time to Buy CEFs

If you’re a bit nervous about investing right now, I get it.… Read more

Read More

Bargain-Hunt the Selloff the Smart Way With These 9%+ Dividends

If you’re looking for 9%+ dividends and an income stream you can retire on without selling shares from your portfolio, closed-end funds (CEFs) are handing you a superb opportunity now.

That’s because this selloff has set us up with bargains in the space, including many CEFs (like two we’ll profile below) throwing off 9% and even 13.7% dividend payouts.

My CEF Insider members know I’m enthusiastic about picking up CEFs at these levels, so long as you’re investing for the long haul and can deal with more volatility, as there’s likely to be more before stock markets ultimately find their footing.… Read more

Read More

Are These 8%-25% Yields Too Good to Be True? Well…

The bond market is blowing up many retirement portfolios. Let’s make sure yours is outrunning inflation, rates, and everything else—with these yields up to 25%.

(That’s not a typo. We’ll talk 25% dividends in a moment. First, let’s address the fixed-income elephant in the room.)

The 10-year Treasury is rapidly running towards 3%—a level it hasn’t hit since 2018. The Fed’s hawkish stance has created a mass exodus in bonds, sending the T-note up from 1.5% at the start of the year to nearly 2.9% in just a few short months.

Now, that’s definitely no reason to start jumping into government debt.… Read more

Read More

This 9.7% Dividend Crushes Treasuries and Stocks

Today we’re going to dive into a three-fund portfolio that throws off a massive 9.7% dividend yield and that payout is backstopped by stocks everyone knows well.

With a dividend like this, $500k invested gets you more than $4,000 in monthly income!

Big Income from the Big Three

While you might be suspicious of a 9.7% yield (and rightly so!), these three funds are solid. Their combined holdings are built on large caps like Amazon.com (AMZN), Visa (V) and Microsoft (MSFT). 

They then add in fast-growing tech plays like Bill.com Holdings (BILL), a maker of back-office software for small and medium-sized companies, which is up 500% over the last five years; and chipmaker Monolithic Power Systems (MPWR), which has gained 443% over the same period.… Read more

Read More

These 7.5% Dividends Are Going Mainstream (Double-Digit Gains Ahead)

I always have a good laugh when the press talks about our favorite high-yield plays—closed-end funds (CEFs)—like they’re some new thing! Of course, we seasoned CEF investors have long known that these funds, which pay out average dividend yields of 7.5%, are the key to retiring on dividends alone.

(The 20 CEFs in our CEF Insider service’s portfolio do even better than that, yielding 8% as I write this, with the highest payer of the bunch paying a life-changing 9.8%.)

Nonetheless, the media continues to be floored by this news!

The latest occurrence came on February 9, when CNBC ran an article called “Retirees Seeking Income May Want to Consider Closed-End Funds.”… Read more

Read More

Categories