These 7.3% Dividends Are Safe (If You Follow These 3 Steps)

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If you’re on the hunt for big dividends (and who isn’t these days?), closed-end funds (CEFs) must be on your shopping list. As I write this, there are more than 500 CEFs in existence, yielding an outsized 7.3%, on average.

Compare that to the yield on the typical S&P 500 stock: a measly 1.4%!

Ten-Year Treasuries? A still-pathetic 1.7%, even after their recent big jump.

But as dividend-rich as CEFs are, some do cut their payouts sometimes, just like any other dividend-paying investment. (Though the good news here is that, even after a cut, a CEF’s yield will almost certainly crush that of a typical stock, because CEFs’ payouts are so large to begin with.)… Read more

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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

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A handful of closed-end funds (CEFs) are boasting what are (at first) tantalizing dividend payouts. I’m talking 15%, 20% and even 40% annualized yields here.

Skeptical? You should be.

Today we’re going to delve into the two highest-paying funds in the CEF world and look at what’s driving their sky-high payouts. Each tells us a lot about what to avoid when buying CEFs for our portfolios.

High-Yield CEF #1: 22% Payout Masks a Dreadful Dividend History

The Cornerstone Strategic Value Fund (CLM) regularly yields more than 15%, even when average CEF yields are historically low. Now that all CEF yields are higher, due to an overall pullback in these funds’ market prices, CLM’s payout is a monster 22%.… Read more

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