These 6% Dividends Look Safe (but owning them will cost you)

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The Contrary Investing Report > NYSE:BIF

Volatility has taken over, and if you’re like most folks, you’re wondering where to find the safe dividends you need to sustain your savings—and income stream—as this pandemic drags on.

There’s one intriguing alternative you may not have thought of: senior loans, also called floating-rate loans. Because they’re far up the corporate food chain, they offer a layer of safety in the event of bankruptcy, something that’s on every investor’s mind these days.

In addition, senior loans offer yields of 6%, on average, making them an income investor’s dream, too. But are these loans—which I only recommend holding through a closed-end fund (CEF)—a buy today?… Read more

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It happens in every crisis: far too many people miss out on big gains (and dividends!) because they’re too focused on the last wipeout.

You can see this tragic mistake throughout history—and many folks are in danger of making it now. I don’t want you to be one of them, so let me explain where I’m going here.

The Generals Always Fight the Last War

Let’s start with the dot-com crash of 2001. After that collapse, many people feared any kind of tech stock. But those who disavowed tech missed out on a monster return. For example, the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, has more than doubled up the S&P 500’s gain since.… Read more

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Today I’m going to show you a bargain-priced closed-end fund (CEF) that’s a standout now—not only because it’s a steal, but because it holds some of the best stocks on the market.

In fact, it takes its inspiration from one of the best investors of all time—Warren Buffett. And the fact that it pays a near 4% dividend yield doesn’t exactly hurt, either.

Before I reveal this fund, let me explain something.

When someone says a CEF is “cheap,” they’re usually referring to the difference between how much that fund sells for on the market (its market price) and the intrinsic value of its portfolio if it were liquidated now—known as the net asset value, or NAV.… Read more

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Forget the trade war noise. Here’s the only thing you need to know: if you’d bulked up your stock holdings on any of the dips we’ve seen in the last four years, you’d be a lot richer today.

Buying the Dip Amplifies a 65% Gain

The reason for the market’s “one step back, two steps ahead” pattern is simple: despite the interest rate- and trade-driven terror, corporate profits and sales are rising (as are workers’ wages), and unemployment is low.

In other words, the US economy is solid—and it’s stayed solid through every short-term crisis of the last few years. So now we have another pullback that’s given us another chance to amplify our upside.… Read more

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If this wobbly market has you parked on the sidelines, worrying the big 2019 rally might evaporate at any second, I have good news: this is still a great time to buy.

But you need to buy carefully if we want to maximize our upside (and protect ourselves from a 2008-style meltdown).

The solution?

Top-quality closed-end funds (CEFs) handing you dividend cash that more than doubles (and in many cases more than triples) what your typical S&P 500 stock pays. I’ll give you three solid CEF picks (selling at fire-sale prices up to 23% off) at the end of this article.… Read more

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Don’t become complacent with your dividends! Your portfolio and your income are at the whim of Fed Chair Jerome Powell—now more than ever.

I realize he’s acting like a “good boy” at the moment. But what if JP decides to go rogue again and exercise his independence? A surprise rate hike would be catastrophic to many income portfolios.

That means you need to “Fed-proof” your nest egg and your dividends. Today we’ll discuss four funds paying dividends up to 10.7% that do just that.

These four closed-end funds (CEFs) have been left for dead in this market rally. That makes them great “Fed insurance”: they’re cheap, so they’ve got built-in upside if the rally goes into overtime.… Read more

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Don’t become complacent with your dividends! Your portfolio and your income are at the whim of Fed Chair Jerome Powell—now more than ever.

I realize he’s acting like a “good boy” at the moment. But what if JP decides to go rogue again and exercise his independence? A surprise rate hike would be catastrophic to many income portfolios.

That means you need to “Fed-proof” your nest egg and your dividends. Today we’ll discuss four funds paying dividends up to 10.7% that do just that.

These four closed-end funds (CEFs) have been left for dead in this market rally. That makes them great “Fed insurance”: they’re cheap, so they’ve got built-in upside if the rally goes into overtime.… Read more

Read More

Don’t become complacent with your dividends! Your portfolio and your income are at the whim of Fed Chair Jerome Powell—now more than ever.

I realize he’s acting like a “good boy” at the moment. But what if JP decides to go rogue again and exercise his independence? A surprise rate hike would be catastrophic to many income portfolios.

That means you need to “Fed-proof” your nest egg and your dividends. Today we’ll discuss four funds paying dividends up to 10.7% that do just that.

These four closed-end funds (CEFs) have been left for dead in this market rally. That makes them great “Fed insurance”: they’re cheap, so they’ve got built-in upside if the rally goes into overtime.… Read more

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Since launching my CEF Insider service in early 2017the picks I’ve given subscribers have outperformed the broader CEF market—even through the recent market volatility that’s caused just about everything to go down.

The key to this performance is a process of analysis and selection that is both complicated and straightforward. I have a checklist of 52 points I go through to choose the right fund. I apply these one by one, first using some of the broader points to screen funds, then zooming in closer, using more complex analysis to bring you my very best buys.

While it’d take a long time to go through that entire checklist, I want to share with you a five-point system that I use as a springboard for picking winning CEFs for CEF Insider.… Read more

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Monday’s major jump in stocks is the beginning of a trend that will catch a lot of investors by surprise: fundamental strength thanks to trade war fears abating.

We aren’t out of the woods yet, as Tuesday showed us. While the market cheered the tentative cease-fire between Xi and Trump on Monday, the lack of details and confusion hit the market on Tuesday.

And that’s a good thing, because it’s set up investors for an opportunity to buy equities cheap before the relief rally around the corner.

Trade Ceasefire Opens Buy Window …

The way I see it, the trade-war ceasefire is likely the beginning of a deal coming down the pipe in the next three months.… Read more

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