Beat the Recession AND Inflation With This “3-D” Portfolio (Yields 8%)

Our Archive

Search completed

When it comes to high-yield closed-end funds (CEFs), I’m a big fan of the “three Ds”: discounts, diversification and—of course—dividends!

These days, a “3-D” portfolio is a snap to put together, with CEF dividends at multi-year highs and oversold discounts everywhere across the asset class.

Below, we’ll look at a three-fund, bargain-priced “3-D” CEF portfolio you can buy today. It yields 8% now and gives you the diversification you need to reduce your volatility—and collect your payouts in peace.

I know that preaching diversification at a time when bonds, stocks and everything else is down might sound a bit outdated, but over time, this time-tested strategy always pays off.… Read more

Read More

Do yourself a favor and shut out all the “experts” who say it’s impossible to retire on dividends alone. They’re just plain wrong! Because even today, with stocks soaring (and dividend yields in the tank), you absolutely can build a portfolio yielding a solid 7%+.

We’re going to do it now, and we’re going to do it easily—with just three funds. These funds—part of a unique asset class called closed-end funds (CEFs)— pay 7.6% between them, and the biggest yielder of the bunch throws off a huge 8.7% payout!

And they’re just the start.

A 7.6% dividend yield is enough to pay you $38,000 a year on just $500K invested, and you wouldn’t have to draw a single penny of your principal to get that cash stream.… Read more

Read More

With the whipsawing market we saw in early December—and now a snap back to near all-time highs—now is the perfect time to talk about one of the biggest questions you’ll face as a closed-end fund (CEF) investor: how do you know when to sell a fund?

Unfortunately, there’s no simple answer—and often investors who use conventional sell signals, like a falling market price, will end up selling at the worst time.

That leads me to my cardinal rule with CEFs: it’s easier to know when to buy than when to sell. If the fund is well managed, has a strong track record, is deeply discounted and has a relatively safe dividend, it’s generally a screaming buy.… Read more

Read More

Members of our CEF Insider service often ask me when they should sell a closed-end fund.

The truth is, when it comes to CEFs, it’s easier to know when to buy than when to sell.

If the fund is well managed, has a strong track record, is deeply discounted in relation to net asset value, or NAV (another way of saying the underlying value of the fund’s portfolio) and has a relatively safe dividend, that CEF has already gone a significant distance toward being a buy.

Sell signs aren’t always as clear, but they’re still there. You just need to know what to look for.… Read more

Read More

Income investors are typically a conservative and prudent bunch. Focused on a sustainable income stream, they often look for a sign to avoid a big price drop.

So when it comes to one of the highest-yielding investments of all—closed-end funds (CEFs)—how can you know when the time has come to sell?

I’ll tackle that question with a 1-2-3 approach to CEFs that will help you avoid the kinds of value traps that promise big dividends but really deliver big losses.

Sell Signs Not Always Easy to Spot

First off, it’s easier to know when to buy than when to sell.… Read more

Read More

With market volatility kicking into high gear, now is the perfect time to talk about one of the biggest questions CEF investors face: how do you know when it’s time to sell a closed-end fund (CEF)?

Unfortunately, there’s no simple answer to that question—and often investors who use conventional sell signals, like a falling market price, will end up selling at the worst time.

That leads me to my cardinal rule with CEFs: it’s easier to know when to buy than when to sell. If the fund is well managed, has a strong track record, is deeply discounted and has a relatively safe dividend, it’s generally a screaming buy.… Read more

Read More

We’re always looking for reader feedback at my CEF Insider service, so we recently sent out a survey to our members (if you are one, you likely got it) asking for the topics they’d most like to see us cover.

One of the most common answers: how to know when it’s time to sell a closed-end fund (CEF).

So now I want to tackle that question (with more articles to come in the next few weeks answering other questions from our survey).

Sell Signs Not Always Easy to Spot

First off, it’s easier to know when to buy than when to sell.… Read more

Read More

Categories