3 Ways to Buy Stocks (and Bonds) for Up to 37% Off

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3 Ways to Buy Stocks (and Bonds) for Up to 37% Off

Today I want to show you three funds that are highly unusual in a way that matters a lot to many folks: all three are free from a management-fee perspective.

In fact, these three funds—closed-end funds (CEFs), to be precise—are more than free: they have negative management costs!

What do I mean? Well, usually index funds sell themselves on being cheap. Fees on the Vanguard S&P 500 ETF (VOO), for example, are just 0.03%, or $300 in annual fees for every $1 million invested, in other words.

There are even funds out there that cost nothing, like the Fidelity ZERO Total Market Index Fund (FZROX), which has no expenses at all.… Read more

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This 7.9%-Payer Just Hinted Its Payout Will Grow

Closed-end funds (CEFs) really are the “Swiss army knife” of investments: with one click, they let us grab big income (the average CEF yields 7.9%), diversify (within and beyond asset classes) and buy their holdings for cheap!

But let’s be honest, when it comes to CEFs, it’s all about the dividends.

On that front, there’s a lot to say. For one, many CEFs pay monthly, making managing our income easy: CEFs’ high yields mean we could potentially replace a $6,500 monthly paycheck with less than $1 million invested and live on dividends alone.

And check out these discount and dividend stats from across the CEF space:

  • A third of all CEFs yield over 10%.

… Read more

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This 10.6% Dividend Is the Best Way to Play the Tech Bounce

It’s no secret that stocks—especially tech stocks—have soared this year. And today I’m going to show you a contrarian dividend play I see as the perfect way to take advantage.

And before you ask, no, we’re not too late here, even though it may look like we are, in light of the NASDAQ’s 40% rise in half a year.

The key to unlocking tech-driven gains is not buying overbought darlings like Meta (META), Alphabet (GOOGL), Apple (AAPL) and Amazon.com (AMZN). Instead we’re buying through a closed-end fund (CEF) yielding an outsized 10.6% and trading at a 15.7% discount to net asset value (NAV, or the value of its underlying portfolio).… Read more

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Buying This Fund Is Like Buying Apple With a 12.1% Dividend

We’ve seen a big bounce (and 12%+ dividends!) in one particular type of closed-end fund (CEF) this year—and all of my buy indicators suggest this profitable play is still in its early stages.

Specifically, I’m talking about tech-focused CEFs—which we’re getting a nice second chance to buy thanks to last week’s earnings whiffs from the likes of Apple (AAPL) and Alphabet (GOOGL).

Buying a tech CEF is like buying an ETF that focuses on technology, but with two key differences:

  • Big dividends: the CEF we’re going to analyze today yields 12.1%—and it pays dividends monthly, too. You and I know that both of these things are unheard of in the world of “regular” stocks and funds.

… Read more

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This Quiet Shift Could Drive 20%+ Gains in CEFs in 2023

There’s a quiet shift happening in closed-end funds (CEFs)—and it’s primed to give those who buy now some very nice upside in 2023.

And that’s in addition to the rich 7%+ dividends CEFs hand us.

That trend is a shift toward share buybacks, which you likely know about from the stock world. Buybacks work similarly with CEFs, but with an extra punch: they keep CEFs’ discounts to net asset value (NAV) from getting too wide—and they can even narrow those discounts, slingshotting the share price higher as they do.

In other words, by helping close CEFs’ discounts, managers have some control over the fund’s market price in a pullback, and they can amplify its gains when the market turns higher.… Read more

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3 Bargain Funds With Huge Yields (up to 13.7%) to Consider for 2023

We’re in one of the trickiest times I’ve seen in my investing career: inflation is receding and we’re well positioned for gains next year. Yet after the year we’ve had, many folks are still hesitant to jump into the market.

Even the 12%+ dividends we’re seeing in our favorite high-yield investments, closed-end funds (CEFs) haven’t been enough to tempt many of them.

I get it.

This period reminds me of the early months of 2009, when “green shoots” were appearing in the economy and markets, but investors were still too scarred by the preceding plunge to get in. But those who did buy then—around the bottom in early March 2009—have done very well:

Buying in Times of “Investor Shell Shock” Pays Off

We’ve got a similar opportunity now.… Read more

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This 13.4% Monthly Dividend Is Absurdly Oversold

Savvy contrarians know that when markets crash, the most beaten-up sectors are often the ones that lead the (inevitable) surge higher.

It’s one of the most reliable trends in investing. With their valuations (and dividend yields) crushed, these stocks are tempting bait for bargain hunters who like to run against the herd.

The 2008 financial crisis is a great example. Financial stocks, which were pummeled as millions of mortgages went bust, went on to soar after the market bottomed in ’09. So did real estate investment trusts (REITs).

Which is why I’m looking to roughed-up tech stocks, and tech-focused closed-end funds (CEFs), to lead the way in 2023.… 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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Here’s an “Omicron-Resistant” Fund With a Safe 6% Dividend

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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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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