Here’s an “Omicron-Resistant” Fund With a Safe 6% Dividend

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The Omicron variant is here—what does it mean for us dividend investors?

Simple—we’ll simply do the same thing we did the last time COVID spooked markets: buy tech-focused closed-end funds (CEFs) with huge payouts!

Members of my CEF Insider service will remember that we did just that in March 2020, at the trough of the market’s initial pandemic plunge, buying the BlackRock Science & Technology Trust II (BSTZ) when it yielded 7.3% and traded at a 6.6% discount to NAV. We then rode it to a nice 21% total return in just two months!

BSTZ Gave Us a Nice Profit in the First COVID Panic

Our first hint that tech is the right thing to buy now is came in last Friday’s chaos, in which all countries saw their markets dip, but interestingly only the tech-focused NASDAQ 100 (QQQ) fell less than 2%

That’s telling, because if governments around the world institute new shutdowns, the last sector to suffer will be tech.… Read more

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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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Let’s dive into a brand-new CEF many people are ignoring—and see how we can ride it to some fast gains (and a growing 6.4% dividend).

When a new CEF rolls down the skids, our antennae always go up, because getting into a new fund before anyone else picks up on it is one of the most exciting ways to build wealth (and a rich income stream) in CEFs.

That’s because most CEF investors are conservative by nature, and they tend to shun new funds (even those run by some of the best CEF managers in the business). That results in big discounts we can jump on—and ride to quick 10%, 20% or even 30% gains in short order.… Read more

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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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A wild year like 2020 is a great acid test for closed-end funds (CEFs)—and it can tell us a lot about which of these high-yield plays to pick (and avoid!) as we move deeper into 2021.

A Split Market

If 2020 did anything, it widened the gap between winning and losing sectors of the stock (and closed-end fund) market. It just goes to show how critical it is to pick funds in the right sectors, as well as those with savvy management that can shift with the times.

Technology, of course, boomed last year. At my CEF Insider service, we were well-positioned in tech with the BlackRock Science and Technology Fund (BST), which we added to our portfolio in August 2019.… Read more

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After watching the S&P 500 crash, then levitate, over the past seven months, I’ve come to one conclusion: high-yield closed-end funds (CEFs) are disrespected now—and that makes them a great contrarian buy.

Sure, some CEFs are cheap for a reason (I’m looking at you, energy funds). But there are plenty of undervalued winners, too. And plenty of CEFs have crushed the market this year, including 10 that have returned more than 8%. This top-10 list, which I’ll show you below, includes CEFs that have doubled, tripled—and even quadrupled the S&P 500’s 4% return.

What’s more, these funds all have one thing in common that sets them up for even bigger gains: strong management, proving once again that who manages your money is just as important as what you invest in—especially if you’re looking to boost your portfolio’s income stream with the 7% (or higher) dividends the typical CEF throws off.… Read more

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Markets have freaked out over the coronavirus—but there’s good reason to believe they have overreacted—I gave you a few of these reasons in my March 19 article.

There’s another reason we need to talk about today: corporate earnings.

While it’s true that earnings expectations have fallen since the outbreak began, they haven’t fallen as much as you’d think. At the start of the quarter, analysts expected 4.4% earnings growth from S&P 500 companies. Now they’re expecting a 0.1% earnings decline.

That’s basically flat, and it’s better than the earnings declines we saw at the start of 2019, when stocks were rallying, so this news shouldn’t scare investors away.… Read more

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If you’ve been told it’s impossible to outperform low-cost index funds because the market’s too efficient, you’ve been misled.

The truth is, there are many funds that have been beating the stock market for years. And here’s something really surprising: there are more funds pulling off this feat now than there have been in a long time!

In fact, across ETFs, mutual funds and closed-end funds (CEFs), there are 3,594 funds that have beaten the S&P 500’s 24.3% return since the start of 2019.

So much for not beating the market!

That leads me straight into the two things I want to discuss with you today:

  1. Why now is still a great time to buy, even with stocks near all-time highs, and …
  2. Why you’ll give yourself better odds of beating the market, and grab far higher dividends, if you go with actively managed funds, particularly CEFs like the technology-focused fund yielding an outsized 6% now that I’ll tell you about shortly.

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Today I want to show you how you can retire on $405,000—and with just five buys, too! Put together, these five stocks and funds hand you a 7.4%-yielding portfolio that will pay you reliably for decades.

First, though, let’s quickly run through how our “5-buy” portfolio will work—and how it proves the so-called “experts,” who say you need a million dollars or more to clock out—are dead wrong.

A Million-Dollar Retirement … for $405K!?

To be smack in the middle of income in America, you need to bring in about $30,000 per year. So, at a 7.4% yield, you’d need to invest $405,000.… Read more

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