I Love CEFs – But I Hate These 212 Loser Funds

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Closed-end funds (CEFs) are increasingly becoming favorites of retirees looking for income. And why not? Many pay 5%, 6% and even 7% or more today. In a world where stocks yield 2% and bonds just 3% or so, the extra dividends can be the key to a comfortable retirement.

The “closed” in CEF technically means that the fund’s pool of shares is fixed. Which is why these vehicles can have wild price swings above and below the values of their actual assets. (Good for us contrarian income seekers – we can buy below fair value to maximize our yields and upside.)

They are also closed in their actual communications with the financial world.… Read more

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Today I’m going to peer into my crystal ball and give you the scoop on where high-yield closed-end funds (CEFs) might be headed in 2019.

Then I’ll give you a proven way to zero in on the ones that are the best bargains for your portfolio now.

CEFs Come Out Flying

First, if you own stocks through CEFs (and if you don’t, click here to discover why these 7%+ payers are a retirement “must-have”), you’re already outrunning the market: my CEF Insider Equity Sub-Index—a great proxy for stock-owning CEFs—is up 13.7% since January 1, a nice lead on the S&P 500’s 12.3% gain.… Read more

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We’ve seen a lot of volatility and fear in 2018, and that’s handed us a great buying opportunity—particularly in the 5 unloved funds I’ll show you below.

Make no mistake: each of these 5 despised funds is poised for serious upside before 2018 is out … and they’ll pay us 8.2% average dividends, to boot. That’s enough to hand you $3,400 a month on a $500k nest egg! Before we get to them, let’s take a look back at the year so far and see what’s handed us this terrific opportunity.

History Is Set to Repeat

If you bought closed-end funds (CEFs) back in early March, when the market tanked and I urged investors to buy, you’d be enjoying a nice double-digit total return in just 6 months:

Hated CEFs Turn the Corner

Why did these 3 funds—the Reaves Utility Income Fund (UTG), the Cohen & Steers Infrastructure Fund (UTF) and the DNP Select Income Fund (DNP)—all of which I recommended back on March 1—soar?… Read more

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What if I told you that you could reap huge dividends (I’m talking life-changing 15% payouts) and quick upside from … the weather?

I’m talking about the bone-chilling polar vortex, which, especially if you live on the US east coast, probably already has you feeling winter weary—and we’re only in mid-January.

I’ll show you 3 beaten-down funds at the center of our “polar-vortex profit plan” in a moment. But first, here are the raw numbers behind this opportunity for income and gains.

A Heat Map for Frigid Times

Since it’s freezing outside, it makes sense to warm our hearts with a heat map—and there’s no better heat map than the one for the S&P 500.…
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If you’re a contrarian investor, you know that the market loves to overreact—and that mass hysteria can hand you some nice profits.

That’s because panicked first-level investors toss great investments over the side along with the bad. We’re happy to step in when they do, buy at a discount, then sit back and watch the price snap back.

This is exactly what Warren Buffett refers to when he says to “buy when there’s blood in the streets.”

And it’s even better if there are high dividend payouts on offer.

Funny thing is, these deals are often hiding in plain sight. In fact, one of the most popular stocks in the world was ridiculously underpriced just under two years ago: Apple (AAPL).…
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