A 6.9% Dividend With Crash Insurance? We’ll Take It!

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A 6.9% Dividend With Crash Insurance? We’ll Take It!

Most of us know we need to stay in stocks through this crisis—but some days it’s easier said than done!

Let’s be honest: we could all use a break—a way to hedge against the nasty drops we see when we log into our trading accounts in the morning.

My first suggestion—try not to log into your account every morning! But if you insist on doing so, then my second suggestion is to take a close look at a popular hedging vehicle called a covered-call fund.

Covered-Call Funds: 6%+ Dividend With “Crash Insurance”

Covered-call funds are a kind of closed-end fund (CEF) that holds stocks but gives us an income stream we’d never see from an S&P 500 company—yields of 6% to 10% are the norm among covered-call funds.… Read more

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You Won’t Believe What This 6.6% Dividend Does in a Recession

A proven recession indicator just went off again—only nine months after its last warning. And how have the markets and the media responded?

Crickets.

The funny thing is that this isn’t a bad news story for us. Because there’s a way we can profit from this signal of tougher times to come. I know that sounds counterintuitive, but stick with me for a moment and I’ll introduce you to a fund that protects—and actually grows—its 6.6% income stream when markets panic.

Before we get to that, let’s look at that recession indicator and tease out what it’s telling us.… Read more

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The 7% Dividend the Recession Can’t Touch

The most reliable recession indicator in the world just flashed red—and it’s actually setting us up for 33%+ gains in the next two years.

A contradiction? Sure sounds like it.

But history tells us we can expect a fast return like this when the economy and stock market look exactly like they do right now.

I’ve got two ways for you to grab a piece of the action, one of which even hands us a growing 7% cash dividend.

And when I say “growing,” I mean it: this already-huge cash stream has grown 96% in the last 15 years, and it’s backed by the strongest stocks in America (I’m talking about the 30 names on the Dow Jones Industrial Average), so there’s plenty more to come.… Read more

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How Equity CEFs Pay Out 6.6%+ Dividends – Even in a Downturn

Today we’re going to dive into a question subscribers to our CEF Insider service often ask: what happens to a closed-end fund’s dividend when stocks take a tumble?

The answer is coming up shortly (and if you’re at all worried about this levitating market suddenly snapping back, you’re going to like what I have to show you).

Then I’m going to reveal one 6.6%-paying fund whose management is dialed in to market swings and know how to protect their investors’ income when things get rough.

How do I know? Because they did just that in the 2008-09 crisis.

More on that shortly.… Read more

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3 “Tariff-Proof” CEFs You Can Buy Now (7% dividends and upside)

You’re no doubt wondering if there’s anywhere you can invest and still get a decent return—without wincing every time you open your brokerage account.

Good news: there is just such a place. And today I’m going to show it to you—along with three specific “crash-resistant” funds yielding up to 7.1%.

The magical place I’m talking about is an often-ignored corner of the market called closed-end funds (CEFs).

Steady Dividends for Rocky Markets

There’s a weird twist that lets CEFs pay us dividends of 7.1% (and a lot higher) without exposing us to the risk of a surprise payout cut.

It comes down to the fact that several CEFs’ prices (on the open market) trade at a discount to the per-share net asset value (or the liquidation value of their portfolios).… Read more

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Ride the Rally With a 15% Discount and 6.4%+ Income

Today I’m going to show you why the pundits have this market rally all wrong—and how a group of little-known investments called closed-end funds (CEFs) are the best way to cash in as stocks head higher from here.

Why do I say higher?

Because as I wrote back on March 30, this market is rising for the right reason: soaring earnings.

According to FactSet, first-quarter earnings are up 12.5% for S&P 500 companies that have announced so far, and earnings per share revisions are far more likely to skew upward than downward.

Simply put, American companies are making cash hand over fist.

But you wouldn’t guess that from the alarmist warnings out there. A couple months ago, CNBC reported that George Soros bet “big” against the stock market, and hedge fund legend Paul Tudor Jones warned that the stock market’s current valuation is “terrifying. …
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My Top Buy for a 6.6% Yield and “Crash Insurance”

The past year has been good for the S&P 500: it’s up about 15.7%, including dividends.

So if you’re simply tracking the index through an exchange traded fund, congrats. That’s a decent gain.

But I’ve got one simple trick—and a far superior fund buy—that can help you do even better … and grab a big chunk of your gain in cash, too.

That trick? Covered calls.

Covered what?

Covered calls are a strategy in which investors buy stocks and sell call options against those stocks.

Think of call options as a kind of insurance; investors buy them if they are short the market and want to protect themselves from blowing up in case the market rallies. If you sell those options to investors, you’re essentially becoming an insurer, giving these gamblers the protection they crave to cover their risky bets. …
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