This “Double-Discounted” 11.8% Dividend Has a Big Edge in 2023

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This “Double-Discounted” 11.8% Dividend Has a Big Edge in 2023

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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An 11%+ Dividend Plan Your Adviser Won’t Tell You About

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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How to Collect $132,000 in Dividends on a Million Dollars

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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These 3 Funds Could Hand You $5,000 a Month in Dividend Cash

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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Here’s a 10%-Yielding CEF With Surprising Upside in the Next 12 Months

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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Bargain-Hunt the Selloff the Smart Way With These 9%+ Dividends

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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This 10.3% Dividend (at a 13.3% Discount) Is Perfect for a Fed-Driven Market

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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This 9.7% Dividend Crushes Treasuries and Stocks

Today we’re going to dive into a three-fund portfolio that throws off a massive 9.7% dividend yield and that payout is backstopped by stocks everyone knows well.

With a dividend like this, $500k invested gets you more than $4,000 in monthly income!

Big Income from the Big Three

While you might be suspicious of a 9.7% yield (and rightly so!), these three funds are solid. Their combined holdings are built on large caps like Amazon.com (AMZN), Visa (V) and Microsoft (MSFT). 

They then add in fast-growing tech plays like Bill.com Holdings (BILL), a maker of back-office software for small and medium-sized companies, which is up 500% over the last five years; and chipmaker Monolithic Power Systems (MPWR), which has gained 443% over the same period.… Read more

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This New Fund Could Upend the CEF World. Here’s What You Need to Know

There’s a new closed-end fund (CEF) on the market, and it comes from one of the biggest CEF issuers in the space: BlackRock.

It’s big—with $4.5 billion in assets under management. You can tell that straight from the ticker symbol: BIGZ. The fund’s full name: the BlackRock Innovation and Growth Trust (BIGZ).

So we know it’s got heft—and it’s got BlackRock’s deep bench of talent behind it (remember that BlackRock is the world’s biggest investment firm, with $7 trillion under management). But does BIGZ have a place in your portfolio? That’s the question we’re going to tackle today.

BIGZ got its start in March, and it’s currently trading flat from its inception and trailing the tech-heavy NASDAQ, which is the best benchmark for the tech-heavy BIGZ.… Read more

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