Dump These 3 Loser Funds Now (and Buy This 6.7%-Yielder Instead)

Our Archive

Search completed

Dump These 3 Loser Funds Now (and Buy This 6.7%-Yielder Instead)

If you’re like most people these days, you’re desperately searching for any kind of meaningful dividend stream.

Finding one is no easy task. The S&P 500, after all, yields 1.5%, on average. Treasuries? With their 0.9% yields, they’re not even worth talking about.

With the old income go-tos off the table, plenty of folks are looking further afield. Some are boosting their holdings of high-yield bonds through exchange-traded funds like the SPDR Bloomberg Barclays High Yield Bond ETF (JNK). Others are going with more esoteric investments, like high-yielding business development companies (BDCs), which you can tap through the UBS Etracs Business Development Company ETN (BDCS).… Read more

Read More

How to Play the Post-Election Bounce for 7.2% Dividends (and Upside)

If there’s one thing you can be sure of in investing, it’s this: alarmists—whether they’re bulls or bears—almost never get it right. And playing the contrarian angle is a great way to grab big gains and 7%+ dividends.

Think back to the days before the election: brokerages were warning of unprecedented volatility following the big day. I heard from some investors who sold most of their holdings right before voters went to the polls, terrified that uncertainty over the results would cause a crash.

Then something weird happened. The election ended, the result was close—and stocks surged.

Close Race = Big Gains

Why did everyone get it wrong?… Read more

Read More

The 4% Rule Is Dead: You Can Retire Much Earlier Than You Think

I really hope you’re not following the antiquated “4% rule”—which says you should withdraw 4% of your nest egg (and no more!)—in retirement. Because if you are, you’re staying in the workforce way longer than you need to.

In fact, you may already be financially independent and not even know it!

Today we’re going to look at why this theory could needlessly delay your retirement (in the words of the 4% rule’s author himself!).

I’ll also show you an easy way to grab almost twice as much from your retirement nest egg in every one of your golden years—I’m talking 7% easy here—and go one step further: live on dividends alone.… Read more

Read More

Buy This, Not That: These 7%+ Alternatives Crush High Yielding Stocks

The market’s fall pullback is starting to reverse itself, but don’t worry: there are still bargain dividend payers yielding 7.4%+ dividends to be had out there.

But investing (along with everything in our lives!) has changed. You simply won’t get safe, high payouts by clutching to old habits and buying big-name, high-yielding S&P 500 stocks. The real dividend bargains are in closed-end funds (CEFs), which give you higher payouts, greater safety and often better returns over the long haul.

To show you what I mean, let’s line up three S&P 500 “dividend darlings” against the CEF competition and see how they compare.… Read more

Read More

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

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

5 Funds That Pay $2,375 a Month on a $300K Portfolio (forever)

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

My Crisis-Investing Strategy for 7.1% Yearly Dividends (forever)

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

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

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

3 Funds That Crush ETFs and Pay 8.4%+

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

3 Safe Strategies for This Market Crash (and an 8.4% Dividend to Buy Now)

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

Categories