In a Nosebleed Market These Cheap Dividends Dish Up to 14%

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In a Nosebleed Market These Cheap Dividends Dish Up to 14%

With the market at nosebleed valuations, where can we look for value and yield?

Let’s turn to our favorite three-letter acronym. C-E-Fs.

As usual we have a handful of closed-end funds (CEFs) getting no love from Wall Street. This is perfect for us as we’re talking about dividends up to 14% and discounts between 10% and 15%.

In other words, these fat payers are trading for 85 to 90 cents on the dollar. Let’s discuss.

Gabelli Dividend & Income Trust (GDV)
Distribution Rate: 5.8%
Discount to NAV: 15.0%

We begin with Gabelli Dividend & Income Trust (GDV), a top-rate closed-end fund whose management team includes legendary value investor Mario Gabelli.… Read more

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

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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Colossal Cash Machines: 5 CEF Yields of 10% or More

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

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Colossal Cash Machines: 5 CEF Yields of 10% or More

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

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Powell’s “Press Conference From Hell” Has Made These 10% Dividends Cheap

Jerome Powell’s latest trip before the microphone has opened up a surprising opportunity for us dividend investors.

I have three funds for you that are deeply discounted in the wake of the Fed chair’s press conference last week, following the release of the latest rate decision. Buying this trio now also sets you up for dividends ranging from 9.7% to a stunning 12.5%.

Before we get to them, let’s set the stage by zeroing in on exactly what happened last Wednesday, from the time the Fed’s decision and seemingly dovish statement were released until after Powell was finished speaking at the following press conference.… 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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5 Discounted Monthly Dividends Paying up to 11.4%

Every legendary investor worth their salt has some sort of phrase to describe what investors should be doing right this very minute.

“Be fearful when others are greedy, be greedy when others are fearful.”

“Buy when there’s blood in the streets.”

Largely speaking, most stocks on the market are on sale to some extent. And sure, we could go out and make a few targeted bets on these bargains.

But I’d prefer to squeeze even more value out of the stock market.

Enter closed-end funds (CEFs).

Why CEFs Are Our Best Option Now

If we were to go out and buy an exchange-traded fund (ETF) that invests in, say, the Nasdaq Composite or Russell 2000, or really any area of the market you felt was underpriced, you’d be able to enjoy in the collective discounts of all their holdings.… Read more

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4 “Double Discounted” CEFs Yielding Up to 9.1% (Paid Monthly)

There’s nothing we closed-end fund investors love more than finding a smartly run fund in an unfairly beaten-down sector. This hands us a nice discount (of course!), plus a much bigger dividend, because yields and prices move in opposite directions.

In fact, with CEFs, we’re actually getting a “double discount”: one from the depressed sector and one from the CEF’s discount to net asset value (NAV, or the value of the stocks in its portfolio). This indicator only exists with CEFs, and we’ll cover 4 with particularly attractive discounts to NAV in a second.

Plus, CEFs already boast yields that triple (or more) those of regular stocks, so deep-discounted CEFs give you an income stream that’s bigger still.… Read more

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“Like 2018 All Over Again”: 3 Huge Dividends Set to Soar as Rates Rise

This stock market selloff has gone way too far—and it’s pumped up the dividend yields on some of our favorite high-yield closed-end funds (CEFs).

That means it’s time to buy. I’ll name three CEFs the panicked masses have mistakenly tossed over the side in a moment. Together, these three snubbed funds throw off an 8.7% average dividend. Plus they’re trading at a nice “double discount”: that is, the CEFs themselves are cheap and their holdings, which consist of top US and international stocks, are way oversold in this latest market fracas, too.

History Is on Our Side

When considering opportunities like this one, it pays to look at history.… Read more

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It’s “Stock Season” – Here’s the Secret to 117% Dividend-Powered Gains

This time last year, my most opportunistic subscribers took advantage of a rocky September and October—and secured annualized returns up to 117% with safe dividend plays.

We have a similar setup this year, with the September swoon “refreshing” stocks-at-large and paving the way for some spectacular moves higher. Is your portfolio ready to capture these unfolding riches?

And no, I’m not talking about crypto. We don’t need to trade Bitcoin, Ether or any “coins” with a dog’s face to meet our profit targets.

We’ll get to today’s hottest “dividend trades” in a moment. First, let’s understand why this strategy worked so well last year (and is likely to work again now).… Read more

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