The Last Cheap Dividend Stocks Yield Up to 9.7%

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The Last Cheap Dividend Stocks Yield Up to 9.7%

The last bargains on the big board? Discounted closed-end funds (CEFs).

CEFs are often the “last stop” for dividend deals. We are talking about an inefficient corner of the income universe, which is just great for us contrarians—we love the discounts.

And these funds can trade for less than “fair value” for months and even years on end. When the markets washed out in April, these CEFs were discarded by their vanilla dividend owners. Let’s pick up the pieces for up to 12% off, or 88 cents on the dollar. And in the process secure yields up to 9.7%.

Nuveen Dow 30 Dynamic Overwrite Fund (DIAX)

Distribution Rate: 8.4%

We’ll start with the Nuveen Dow 30 Dynamic Overwrite Fund (DIAX), an example of a strategy that thrives in CEF land: covered calls.… Read more

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This Snubbed International Fund Ignores China, Pays Monthly 8% Dividends

Overbought stock markets—and pathetic 1% dividends—here in the US just might have you tempted to look overseas for higher payouts.

It’s a smart move. After all, plenty of countries offer investors higher dividends than America. For example, the yield on the FTSE 100 index, which consists of the 100 biggest companies on the London Stock Exchange by market cap, is 3.4% today, nearly triple the average S&P 500 payout of 1.3%.

(And you can get strong diversification across the globe—with a strong North American base—when you buy the 8%-yielding fund we’ll get to shortly.)

But as we discussed a couple weeks ago, we need to steer well clear of (or at least be very careful with) any exposure to China, because as fast as the country’s growth has been, the governing Chinese Communist Party’s respect for free markets is questionable—and has been growing more so of late.… Read more

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Get 10.6% Dividends (Paid Monthly!) From These 4 High-Yield Closed-End Funds

There are four funds sitting right under investors’ noses throwing off rich 10.6% dividends today. What’s more, these high-yield closed-end funds (CEFs) deliver these rich payouts monthly.

We can thank the recent selloff for this opportunity. It’s weighed on these CEFs’ prices, tweaking their yields higher.

With a 10.6% payout, you can get a yearly dividend stream of $40,000 on just a $378,000 investment. If you went with an index fund like the SPDR S&P 500 ETF Trust (SPY) or Vanguard S&P 500 ETF (VOO), which both yield 1.7% as I write this, you’d have to invest $2.4 million to get the same payout!… Read more

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