15 Huge Dividends (7.6%+) That Are “Too Good to Be True”

Our Archive

Search completed

15 Huge Dividends (7.6%+) That Are “Too Good to Be True”

With stocks back in “climb” mode (at least for now!), it could seem like a good time to look for a hedge against the next downturn.

If you’re looking for hedges that also pay big dividends, you might be considering resource funds—especially those in oil and gas, or maybe even gold.

Today I’m going to show you why you should resist this strategy, or at least be very careful about it. Closed-end funds (CEFs), which yield 8.3% on average today, are my beat at my CEF Insider service, so I’ll use CEFs (which we love, especially outside the resource space!)… Read more

Read More

Where I’m Finding Safe (and Cheap) 7% Dividends Now

This market crash has served up some terrific opportunities in closed-end funds (CEFs), many of which are throwing off safe 7%+ dividends today.

Dividends of that size, of course, are critical today, as we look to offset rising inflation. And I think we can all agree that a CD or Treasury will never match a payout like that.

But of course, not all CEFs are set to rise equally as the stock market continues to regain its footing (which I expect it to as we move through the back half of 2022), so we need to be careful about exactly which sectors—and funds—we target.… Read more

Read More

How to Pick Winning CEFs (for 555% Returns, 7%+ Dividends)

Once folks get a taste of closed-end funds (CEFs), they typically rave about one thing: the dividends! Yields of 7% and up are common with CEFs, and they often come your way monthly.

We also love the fact that even though CEFs are a small corner of the market (with only about 500 or so out there), we can build a diversified portfolio with them: there are CEFs that hold US and international stocks, bonds, real estate—even private equity. You name it.

This broad range gets us around a problem most income-seekers face: being forced to stake significant sums in one, or a handful of, stocks just to get big payouts.… Read more

Read More

How ETFs Can Crush Your Income, Limit Your Gains (and a Better Play for 7%+ Payouts)

Let’s be honest: we dividend investors will be glad to see the back of 2021. While it’s been a great year for us at my CEF Insider service (our portfolio yields 7.2%, on average, and we’ve seen some nice double-digit winners, too), it seems like every day begins with a market-crushing (and anxiety-inducing!) news story.

To be honest, 2022 will likely bring much of the same, but if you do what I strongly recommend—stay away from the business news as much as possible—you’ll do your portfolio (and your mental health!) a big favor.

You and I both know the pundits rarely get it right anyway (who remembers the hand-wringing worries about deflation 12 months ago?… Read more

Read More

These 560 Investments Pay 6%+ Dividends (with 79% Payout Growth)

Return to the office? Heck, we income investors don’t need to return to work—period.

We can turn our nest egg into a cash flow machine, with big dividends to cover our monthly expenses. I’m talking about retiring on dividends alone.

Yes, we’re three buys away from kicking back, collecting payouts and watching our portfolios continue to tick higher. Best of all these dividends have upside, which will power our nest egg to new highs. They serve as the “payout magnets” that pull our investments higher with each dividend raise.

Most importantly, this “three-click” portfolio is well diversified, with 560 different income investments.… Read more

Read More

3 Beaten-Down Energy Dividends (up to 7.7%) With 65% Upside Ahead

The recent oil correction has opened a window for us income investors to grab big(ger) dividends at big(ger) discounts! Today we’re going to take full advantage.

In a moment, we’ll discuss a 3-click energy dividend portfolio that yields 5.9%. Plus, we have some price upside in addition to these payouts, thanks to the pullback in the energy sector.

There’s no doubt the goo has taken a header, dropping from $75 a barrel in mid-July to $62 as I write this. But that’s overdone: consider that our “crash ’n’ rally” scenario (which I’ve been arguing with anyone who will listen for 16 months now) is still in early days.… Read more

Read More

447% Returns, 5.2% Dividends (Just by Avoiding This 1 Simple Mistake)

Once folks get a taste of closed-end funds (CEFs), they typically rave about one thing: the dividends! Yields of 7% and up are common with CEFs, and they often come your way monthly.

We also love the fact that even though CEFs are a small corner of the market (with only about 500 or so out there), we can build a diversified portfolio with them: there are CEFs that hold US and international stocks, bonds, real estate—even private equity. You name it.

This broad range gets us around a problem most income-seekers face: being forced to stake significant sums in single stocks just to get big payouts.… Read more

Read More

3 Simple Ways to Safety-Check Your CEF Portfolio This Summer

Plenty of investors will tell you that the higher an investment’s dividend yield, the greater the risk you’ll suffer a big dividend cut, especially in a market downturn.

To that I have one response: these folks have never invested in closed-end funds (CEFs)!

The portfolio of our CEF Insider service is a case in point. It yields a healthy 6.6% on average—five times more than the income-starved S&P 500 crowd gets—and the payouts on our funds have held up beautifully throughout this crisis.

Like the Eaton Vance Tax-Advantaged Global Dividend Fund (ETG), which we bought in January 2020, when it yielded a handsome 6.7%.… Read more

Read More

Why I’d Sell This 8% Dividend After 46% Gains

Many people spot a closed-end fund (CEF) with a high dividend, a double-digit discount and a big recent price gain and automatically hit the buy button, thinking they’ve got a clear winner on their hands.

But you need to go deeper to make sure your pick is a solid one, as one CEF, the Clearbridge MLP and Midstream Fund (CEM), clearly demonstrates.

CEM holds shares of “midstream” master limited partnerships (MLPs)—or companies that operate pipelines and storage facilities for oil and gas. The fund sports a 12% discount to net asset value (NAV, or the value of the MLPs in its portfolio) today, as well as a 7.9% dividend.… Read more

Read More

5 Ways to Get up to 14.6%+ Dividends (Not All Are Safe)

If we can be sure of one thing these days, it’s that millions of investors are fed up with the pathetic 0.7% yields offered by so-called “safe” plays like Treasuries. And the 1.7% dividend that the average S&P 500 stock pays? Nobody’s not retiring on that, either!

So it follows that many more investors will go on the hunt for high, safe dividends in the coming months.

That means a group of 500 big yielders called closed-end funds (CEFs) will draw a lot more interest. The average CEF yields 7.2% now, and the biggest payers yield well into the double digits, like the 14.6%+ yielders we’ll dive into below.… Read more

Read More

Categories