These 10 “Crisis-Proof” Funds Yield Up to 10% (with 17% upside)

Our Archive

Search completed

After watching the S&P 500 crash, then levitate, over the past seven months, I’ve come to one conclusion: high-yield closed-end funds (CEFs) are disrespected now—and that makes them a great contrarian buy.

Sure, some CEFs are cheap for a reason (I’m looking at you, energy funds). But there are plenty of undervalued winners, too. And plenty of CEFs have crushed the market this year, including 10 that have returned more than 8%. This top-10 list, which I’ll show you below, includes CEFs that have doubled, tripled—and even quadrupled the S&P 500’s 4% return.

What’s more, these funds all have one thing in common that sets them up for even bigger gains: strong management, proving once again that who manages your money is just as important as what you invest in—especially if you’re looking to boost your portfolio’s income stream with the 7% (or higher) dividends the typical CEF throws off.… Read more

Read More

I’m going to show you a dividend portfolio that gets you an incredible 9.5% payout—and you won’t have to take on stomach-churning risk (which, let’s face it, no one’s keen on doing now) to get it.

Imagine what a 9.5% dividend could mean. Take a $300,000 portfolio and you’ve suddenly got $2,375 in passive monthly income. A million bucks? You’re talking about almost $8,000 a month—miles ahead of the $1,500 a month you’d get if you just put it in an S&P 500 index fund.

Here’s the kicker: the investments in this five-fund portfolio, all closed-end funds (CEFs), invest in the same companies that make up the S&P 500.… Read more

Read More

This crisis has hit income-seekers—particularly retirees—hard. After the stomach-churning March selloff came the slashing of “sacred cow” dividends, like those of senior-care providers Ventas (VTR) and Welltower (WELL).

Look to Closed-End Funds for Retirement Income

It’s understandable (and healthy!) if the past few months have made you extra cautious when picking dividend stocks. The good news on the dividend front is that you can still find plenty of high, safe payouts in my favorite corner of the high-yield market: closed-end funds (CEFs).

CEFs are a great pick for retirement income today, for three reasons. First, they still give you access to large-cap stocks you know well: mainstays like Visa (V), Apple (AAPL) and Johnson & Johnson (JNJ) feature in many equity-CEF portfolios.… Read more

Read More

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

Read More

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

Read More

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

Read More

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

Read More

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

Read More

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

Read More

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

Read More

Categories