This Unloved CEF Is Built for a Crisis (and pays 7.1%)

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The Contrary Investing Report > NYSE:ASG

Today we’re going to cut through the economic hype surrounding this crisis and jump on a little-noticed opportunity for double-digit upside and 7% dividends, too.

I’ll get into the raw numbers, and some specific tickers, shortly.

First, here’s a figure you may have read in the news: US households lost $6 trillion in the first quarter of 2020. That’s tough to get your head around: it equates to $57,551 per household.

Taken on its own, you might think it means we’re in for a long, dreary recovery. But there are a few facts we need to complete the picture.

The first: Americans didn’t go that deeply in debt to offset that loss.… Read more

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The convenience of a one-click ETF is tempting, but in times like these, buying one can seriously cap your upside—and cause you to leave serious dividend cash on the table, too.

I know that’s a controversial statement, with the millions of ETF fanboys and fangals out there, so let me explain why you do not want to pile into these vehicles during a bear market like this one.

I’ll start with a very popular ETF, the Vanguard High Dividend Yield ETF (VYM). True to its name, it holds the stocks that pop into most people’s minds when they think about dividends, like Johnson & Johnson (JNJ), Procter & Gamble (PG), Verizon Communications (VZ) and Pfizer (PFE).Read more

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When the market is selling off, it’s easy to panic as big losses rack up in your account.

Here’s the thing, though: going to cash, and fully exposing yourself to inflation, is a guaranteed way to lose. It’s doubly sad to see first-level investors doing this when there’s a time-tested way to survive meltdowns, keep your income stream intact and cut your portfolio’s volatility.

It doesn’t involve panic selling. Instead, it revolves around three simple rules: diversify, be patient and keep a big income stream. Let’s walk through each of these.

  1. Diversify

The first key to surviving a meltdown is to be in several markets at once.… Read more

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Flipping through my stock screener earlier this week, I ran across two of the best examples of bubbles-in-the-making I’ve ever seen:

Looking to Lose Money? Invest Here.

Those would be Tesla (TSLA), in blue above, and Virgin Galactic (SPCE), in orange.

Bubbles, of course, are nothing new: Nobel Prize–winning economist Robert Shiller explained them in his 2000 book, aptly titled Irrational Exuberance:

“Errors of human judgment can infect even the smartest people, thanks to overconfidence, lack of attention to details and excessive trust in the judgments of others, stemming from a failure to understand that others are not making independent judgments but are themselves following still others—the blind leading the blind.”… Read more

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With coronavirus spreading and China’s economy being shut off from the rest of the world, you’re right to ask one (or both) of the following questions:

Is this rally justifiable? Is it still a good time to buy in?  

Profits (and Dividends), Not Fear

Here’s the good news: this market is rising on fundamentals, and ignoring overwrought media headlines that will eventually be forgotten. So yes, now is a good time to buy in. And contrary to what most people think, there’s still a good shot at high (I’m talking 7.8%+) dividends out there for us, too. Those payouts are in a corner of the market too many people never think to check.… Read more

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With coronavirus spreading and China’s economy being shut off from the rest of the world, you’re right to ask one (or both) of the following questions:

Is this rally justifiable? Is it still a good time to buy in?  

Profits (and Dividends), Not Fear

Here’s the good news: this market is rising on fundamentals, and ignoring overwrought media headlines that will eventually be forgotten. So yes, now is a good time to buy in. And contrary to what most people think, there’s still a good shot at high (I’m talking 7.8%+) dividends out there for us, too. Those payouts are in a corner of the market too many people never think to check.… Read more

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Let’s dive straight into a trap I’ve seen many investors make in the past. And falling into this pitfall again today could cost you a 7.7% dividend in 2020, and considerable upside, too.

It involves China’s stock market, which gives all indications of being a bargain today. Too bad it’s anything but!

China Equities Get a Beatdown

Truth is, there do seem to be some screaming bargains in China-focused closed-end funds (CEFs) these days—like the Templeton Dragon Fund (TDF), which trades at a 12.1% discount to NAV. Or the Morgan Stanley China Fund (CAF), which sports the same 12.1% deal.

But many Americans have been lured into the China story in the past decade, when it looked like the Red Dragon would finally lurch ahead of the US … only to have it end in tears.… Read more

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I run into far too many investors who think the best way to build their bond income is to buy through an ETF.

It makes sense. After all, buying corporate bonds “direct” means playing in the murky over-the-counter market, or forking over a hefty brokerage commission.

What’s more, the media—with help from ETF providers’ marketing departments—has most folks believing an “automated” ETF always beats a human manager.

So it follows that more people are buying ETFs like the Bloomberg Barclays SPDR High-Yield Bond ETF (JNK). With one click, you’re getting a portfolio of corporate bonds throwing off a nice 5.6% dividend yield—and charging just 0.4% of assets.… Read more

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Today we’re going to dive into some of the proven indicators I use every day to forecast what’s next for the economy.

Then I’ll name an off-the-radar fund holding some of the best-known growth stocks in the US. It pays an 8% dividend and is set to gain as the economy does something too few people (and especially the media) expect it to—keep growing!

More on all of this in a moment. First, to really make the most of the opportunity we’re getting today, you need to be able to do what most people can’t—buy when everyone else is panicking.… Read more

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Something unusual has happened in closed-end funds (CEFs) lately—a lot of new names are showing up in the leaderboard of the top long-term performers.

According to my CEF Insider service, there are now 36 funds that have delivered over 15% annualized total returns over the last decade, and three have delivered over 20% annualized returns, including their hefty dividend payouts.

And today we’re going to dive into five that have returned 17% and up (annualized) over the last decade. They’re powerful income generators for any market, with monster dividend yields all the way up to 10.5%!

Let’s get started.

Winning CEF #1: Cohen & Steers Quality Income Realty Fund (RQI)

RQI uses investors’ money to build a diverse portfolio of real estate investment trusts (REITs).… Read more

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