3 Secure Funds Yielding 7% That’ll Fund Your Retirement

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3 Secure Funds Yielding 7% That’ll Fund Your Retirement

The “race to zero” heats up again. You’ve surely heard that Vanguard is now slicing and dicing its already-low fees and commissions. That sounds great, but in reality, the low-fee race is pennywise yet dividend-foolish for us income investors.

To retire on secure, high-yielding long-term investments, we actually prefer to pay a fair management fee. I’ll outline this in a moment via a trio of secure 7% payers. Their generous yields tower above mainstream low-fee options:

More on these three dividend funds in a minute. First, let’s review why we prefer to pay for professional management.

Vanguard kicked off the new trading year by joining the “no-commission” fray that caught the likes of Charles Schwab (SCHW) and E*Trade (ETFC) by surprise in 2019.… Read more

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5 Safe CEFs (with No Debt!) Paying Up to 9%

Legendary investor and Berkshire Hathaway (BRK.B) CEO Warren Buffett recently gave us an insight into the type of dividend-paying fund he’d invest in if he could:

“Our aversion to leverage has dampened our returns over the years. But (partner Charlie Munger) and I sleep well. Both of us believe it is insane to risk what you have and need in order to obtain what you don’t need.”

“Leverage” stands out because it’s a common tool used among several high-yield classes, from mortgage real estate investment trusts (mREITs) to business development companies (BDCs). Even closed-end funds (CEFs) – which some investors turn to for relative safety versus individual stocks given CEFs’ diverse portfolios – can sport high leverage of between 30% and 60%.…
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The No. 1 CEF Trap You Must Avoid

Of all the things investors ask me about closed-end funds, the main one is leverage. (A close No. 2 is CEF return of capital, which I discussed in a recent article here.)

Yes, CEFs often borrow money and invest it in stocks or bonds. That scares some people, who then ask me if a leveraged CEF is safe.

The answer is: sometimes. (Below I’ll show you 2 CEFs with 6.5%+ dividend yields that are using leverage perfectly to slingshot their shareholders to double-digit gains.)

You see, leverage can boost your return in a bull market and magnify your loss in a bear market.…
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The Bull Market in CEFs: Why It Really Is Different This Time

Closed-end funds are absolutely crushing the S&P 500.

So far in 2017, the SPDR S&P 500 ETF (SPY) is up 7.8%, including dividends. That’s impressive considering the geopolitical calamities, unpredictable moves from the White House, economic uncertainty and rising interest rates the market is facing.

But what’s even more impressive is that over 200 closed-end funds (CEFs) are up even more than that.

Let’s take a look at our new CEF Insider research service’s proprietary Total CEF Index.

Of the 500 funds it covers, almost half (229) are beating the S&P 500 so far in 2017. And it’s hard to nail down a common thread that ties them all together.…
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