Boom or Bubble? With Up To 13% Yields, I Don’t Care!

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AI bubble? Bear market rally? I don’t care because I see five dividends between 10.1% and 13.5%.

Now that’s rarified air for yields! A benefit of a manic market such as this, where we have fear alongside insanity at the same time.

The five double-digit dividends we’re about to discuss aren’t tied to individual stocks, either. These payouts are dished by diversified funds with dozens or hundreds of holdings. All have experienced managers at the helm.

They just happen to be cheap because CEFland is still on sale after a rough run in 2022. Which is where we contrarians pick up the case.… Read more

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Bull or bear? Who cares when we can collect dividends between 10.1% and 11.8%.

That’s not a typo. The S&P 500 pays 1.7%. The 10-year Treasury yields two points more at 3.7%.

That’s better—but it ain’t 11.8%!

The same million-dollar retirement portfolio can either generate $17,000, $37,000 or $118,000 per year. Tough choice!

And better yet, the double-digit dividends I mentioned aren’t penny stocks. We’re talking about diversified funds, with dozens of holdings, managed by skilled advisors that often have decades of experience at the helm.

How Do You Spell “Massive Income”? C-E-F.

A couple of weeks ago, we discussed CEFs versus ETFs:

“If I can give you just one piece of advice to start 2023, it’s this: do not trust your dividend income to ETFs!”

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Bull or bear? Who cares when we can collect dividends between 10.1% and 11.8%.

That’s not a typo. The S&P 500 pays 1.7%. The 10-year Treasury yields two points more at 3.7%.

That’s better—but it ain’t 11.8%!

The same million-dollar retirement portfolio can either generate $17,000, $37,000 or $118,000 per year. Tough choice!

And better yet, the double-digit dividends I mentioned aren’t penny stocks. We’re talking about diversified funds, with dozens of holdings, managed by skilled advisors that often have decades of experience at the helm.

How Do You Spell “Massive Income”? C-E-F.

A couple of weeks ago, we discussed CEFs versus ETFs:

“If I can give you just one piece of advice to start 2023, it’s this: do not trust your dividend income to ETFs!”

Read more

Read More

There are three big overlooked trends in the stock market now, and by tapping each one, we can set ourselves up for some very nice long-term gains in my favorite high-yield vehicles: closed-end funds (CEFs).

The 11.8%-yielding CEF we’ll discuss further on, the BlackRock Innovation & Growth Trust (BIGZ), is a prime example of a CEF with loads of upside potential now. I’ve also got a collection of buys yielding up to 9.6% on average (with many paying dividends monthly) waiting for you in the portfolio of my CEF Insider service.

Inside 2023’s “Double Discount” on CEFs

CEFs’ high dividends are one reason why we favor these funds.… Read more

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Despite all the doom and gloom out there, there has never been a better time to retire.

I know that sounds absurd, but it’s true, especially if you plan to retire on dividends alone. With the 2022 crash crushing stock prices—and driving up dividend yields—it’s prime time to grab some outsized payouts for cheap!

But the blue chips that everyone buys are not the answer. Because even with the selloff, the average S&P 500 stock’s yield has risen to … 1.6%.

No way that’ll cut it, and Treasuries won’t cut it, either. Buying the 10-year at the current 3.8% yield only gets you $19K a year in dividends on your $500K—poverty-level income.… Read more

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While vanilla investors worry along with the herd, we contrarians are buying. And oh, the yields we have available!

As I write to you today, I’m staring at no less than 29 income funds that yield more than 8%. Twenty-nine paying more than eight!

For retirees with a million-dollar portfolio, this is $80,000 per year in dividend income. Actually, more, because some of these funds pay up to 13%.

Why would we sell when this is the best time to buy in years? I explained this while yapping with Moe Ansari on his Market Wrap program. Moe asked me: “We hear all the ‘Doom and Gloomers’ out there.… Read more

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One nice thing—and probably the only nice thing—about the 2022 market selloff is that it’s given us dividend investors an opportunity to grab 10% yields we can count on for the long haul.

They come to us from closed-end funds (CEFs), a (too) long-neglected asset class that, frankly, is looking better and better every day for those looking to retire on dividends alone—and frankly we all should be.

I do want to emphasize the long haul here, though, because at this stage of the market correction, you can put some money to work effectively, either by picking up individual funds here and there or by dollar-cost averaging (DCA) to build up your income stream (and portfolio) at a reasonable price.… Read more

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I get a lot of readers asking me when this market will bottom. We don’t know for sure, of course, because market bottoms are only visible in hindsight. But I would say that now is a good time to buy dividend-paying stocks—especially if you use dollar cost averaging (DCA), which you probably used to build your portfolio.

DCA (or buying a fixed amount on a fixed date throughout the year, say) is particularly effective for high-yield CEFs, which are, of course, our beat at my CEF Insider service.

That’s because of these funds’ above-average dividends and deep discounts to net asset value (NAV, or the value of the stocks in their portfolios).… Read more

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If you’re looking for 9%+ dividends and an income stream you can retire on without selling shares from your portfolio, closed-end funds (CEFs) are handing you a superb opportunity now.

That’s because this selloff has set us up with bargains in the space, including many CEFs (like two we’ll profile below) throwing off 9% and even 13.7% dividend payouts.

My CEF Insider members know I’m enthusiastic about picking up CEFs at these levels, so long as you’re investing for the long haul and can deal with more volatility, as there’s likely to be more before stock markets ultimately find their footing.… Read more

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These days, everyone is on guard for a recession. And the inverted yield curve is only adding to those fears.

Sure, a recession may be in the offing, but I don’t see one starting anytime soon. I don’t know about you, but I’ve never seen a recession hit when corporate profits are soaring like they are today—up 40% from pre-pandemic levels and forecast to keep rising:


Source: Wells Fargo Economics

This “profits-up, stocks-down” dynamic (the S&P 500 is still down about 4% from the start of the year as I write this) makes now a good time to buy, particularly if you’re doing so through my favorite high-yield investments: closed-end funds (CEFs), like the one we’ll discuss below.… Read more

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