Overpriced, Overhyped and Due for a Fall: 3 Big Dividends to Sell Now

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Overpriced, Overhyped and Due for a Fall: 3 Big Dividends to Sell Now

We just saw the first real signs that the “vibecession” is becoming something more—and this is our cue to pluck from our portfolios (or avoid adding!) three funds that are way into bubble territory. (Names and tickers below.)

Let’s start with that slowdown signal.

In this chart, from Apollo Global Management, we see that the total number of Americans who are only making the minimum payments on their credit cards is at its highest level in over a decade. This tells us that inflation and a slowdown in the job market are putting direct (and increasing) pressure on household budgets.

There are other signs, too.… Read more

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Overpriced, Overhyped and Due for a Fall: 3 Big Dividends to Sell Now

We just saw the first real signs that the “vibecession” is becoming something more—and this is our cue to pluck from our portfolios (or avoid adding!) three funds that are way into bubble territory. (Names and tickers below.)

Let’s start with that slowdown signal.

In this chart, from Apollo Global Management, we see that the total number of Americans who are only making the minimum payments on their credit cards is at its highest level in over a decade. This tells us that inflation and a slowdown in the job market are putting direct (and increasing) pressure on household budgets.

There are other signs, too.… Read more

Read More

This Ridiculous Fund is 512% Overvalued (Elon Musk Could Pop Its Bubble)

I often talk about high-yielding closed-end funds (CEFs) that are great buys because, well, there are plenty of CEFs that are. Yes, even in unprecedented times like these!

That’s because the best CEFs offer three things we love:

  • Big dividends, with an average yield of 7.8% across the asset class.
  • Bargain valuations, with average discounts to net asset value (NAV, or the value of a CEF’s underlying portfolio) of 5%.

    And how’s this for a stat …
  • Proven performance, with 94% of CEFs posting positive returns (with dividends reinvested) over the last decade. Ninety. Four. Percent.

Still, every once in a while, a CEF comes across my desk that’s an obvious one to sell (or avoid if you don’t already hold it).… Read more

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This 10.6% Dividend Is a Top Buy When Stocks Melt Down

Here’s where I see stocks now: Yes, we’ve got some legitimate concerns as some economic warning signs appear—and run up against the tech-driven optimism that’s powered stocks to lofty heights.

The result? Volatility.

So today we’re going to look at a couple quick moves we can make to both protect ourselves and tap into the bargain income opportunities—including a 10.6%-paying closed-end fund (CEF)—that times like this always turn up.

For that, we’re really talking about two things.

First up, we’re going to add income plays beyond stocks. Specifically, we’re going to look at corporate bond–focused CEFs, many of which are paying double-digit yields and are poised to tack on serious price gains as the economy slows.… Read more

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