2 “Sleeper” 7.5%+ Yielding Funds Set to Soar as Powell Cuts Rates

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2 “Sleeper” 7.5%+ Yielding Funds Set to Soar as Powell Cuts Rates

Here’s a wild prediction for the rest of 2024: “sleepy” (but very high yielding) emerging-market bonds will clobber today’s high-flying AI stocks.

Sounds ridiculous, right?

Well, it’s one of those seemingly weird calls that’s absolutely on the table after the first Fed rate cut drops—a date that, if futures traders are right, will arrive as soon as June:

Interest Rates Are About to Pull a 180

Source: CME Group

Here’s where emerging-market bonds come in: When rates drop, the US dollar gets banged up—it always does. That will light a fire under EM bonds.

And given that the dollar has been en fuego for the past decade, the greenback’s drop could very well be swift.… Read more

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Your Ticket for Yields Up to 12% (But Get Out Your Passport.)

AI is popular. Emerging market bonds, needless to say, are not.

Which is perfect for us responsible contrarians striving to retire on dividends. The more neglected an asset, the better.

But what’s the catalyst for these big yields? I’m talking dividends between 6.5% and 12.1%, by the way.

That’s easy. When the buck gets banged up, these funds soar. And that is exactly what is playing out today.

The US dollar has been en fuego for the past decade. I know, it’s hard to believe given noise from the “demise of the dollar” crowd. But these guys have lost a lot of money betting against the buck.… Read more

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Ethical Dividend Investing (Invasions, Oil and More)

“Mom, please make sure you secure your mask first before assisting the kiddos.”

We receive this reminder every flight from at least one flight attendant. Mom receives the reminder while your income strategist sits across the aisle (a mile away as far as his parenting partner is concerned) in an uneventful seat dubbed Daddy Island.

This, of course, runs counter to Mom’s (and even Dad’s) instinct. If your kid is in trouble, your first, second and third reaction is to help your child first. The airline’s point is that we can best help our children by first securing our own oxygen.… Read more

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These 3 CEFs Yield Up to 8.4% (and They’re Cheap, Too)

As I write this, the 14 funds in our CEF Insider portfolio yield a tidy 6.7%, on average. And while that’s down from the 7.5% average (and above) we’ve seen in the past, there’s a good reason: big price gains! (Because prices and yields move in opposite directions, of course.)

And recently, we’ve locked in some of those big returns with timely sales. In our June 2021 CEF Insider issue, for example, we sold the PGIM High Yield Bond Fund (ISD), which we bought in late 2019 (a lifetime ago!) when it was trading at a 10.3% discount to net asset value (NAV).… Read more

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The 60/40 Portfolio is Now 53/47, Yields 7.2%

Is the 60/40 (stock/bond) portfolio now 100/0 in favor of stocks?

That’s been the subject of several financial headlines lately. The authors are suggesting that the traditional mix of 60% large-cap stocks and 40% safe bonds won’t generate enough money for us to retire on unless we’ve got a cool $10 million or so. And, they’ve got a point, with the S&P paying less than 2% and US Treasuries yielding under 1%.

But even a 100/0 portfolio won’t help you too much. Put it all in the popular SPY ETF, and we’re still under 2%! Plus, this “heart attack kid” can fluctuate by 1% or even 2% per day.… Read more

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Monthly Payouts (Yielding Up to 9.7%) That Are Jay Powell-Proof

“Brett, how you hanging in there?” My CPA leaned into his computer on our latest Zoom call.

“Well, every time Gavin Newsom talks, my life seems to get a bit worse.” (The governor of California had just announced that public and private schools would not open in the fall.)

He cracked up. “That comment reminds me of a column you wrote years ago about (then Fed Chair) Janet Yellen. Something about Yellen yapping and closed-end funds (CEFs) rising?”

“Right. Poor Janet. She sure was level-headed compared to (current Fed Chair) Jay Powell. Every time Powell speaks, gold pops!”

The reason is obvious.… Read more

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These 7% Dividends Crushed the Market (and We’re About to Do It Again)

Today I’m going to give you everything you need to sail through the next crash, crush the S&P 500 by this time next year—and grab safe dividends up to 8.4%.

We’ll pull off this “dividend hat trick” through a set of “pullback-proof” investments with dividends up to 5 times bigger than what your typical S&P 500 stock pays.

In a moment, I’ll reveal three funds yielding up to 8.4% that are more than worthy of your attention now. They come from a corner of the market that will surprise you.

First, though, you might be wondering how I found these big, steady payouts.… Read more

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How to Get $3,329 in Dividends Every Month (from just $470K)

Think you can’t retire on anything less than a million bucks?

Many people would answer that question with a “yes.” If you’re one of them, I have great news: the “million-dollar myth” is just that, a myth.

I’ll tell you why in a second. Then I’ll reveal 4 buys throwing off a safe cash dividend yielding 8.5%—letting you fund your golden years on a lot less.

(These 4 are the tip of the iceberg, by the way. At the very end of this article, I’ll give you 20 more retirement lifesavers paying gaudy 8% average dividends, as well!)

A Million-Dollar Retirement … on $470K!?… Read more

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The Bond God’s 5 Favorite Yields (Up to 8.2%)

When the “Bond God” Jeffrey Gundlach speaks, we income seekers listen. And recently,  the preeminent yield guru on the planet shared his favorite stock idea with a private audience.

I’ll share the specifics on his recommendation in a moment, including the exact “pair trade” that Gundlach likes. But first, let’s recap why we care what he says.

His Profitable Contrarian Calls

When Gundlach speaks, he often takes heat from his peers and the media because his calls run contrary to popular belief. But he’s usually right – and profitable:

  • In 2007, he warned investors to get out of subprime mortgages just before the credit markets melted down.

…
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The Top 4 CEFs on My Personal Watch List

If you’ve been reading my CEF Insider service or my weekly articles on Contrarian Outlook, you know I don’t go near a closed-end fund unless it hands us two things:

  1. A fat, sustainable dividend
  2. A big discount to net asset value (NAV, or the value of its underlying assets)

Today I’m going to show you 4 CEFs that give us these two things in spades, with safe dividend yields up to 8.2% and ridiculous discounts either at or near double digits! (If you’re unfamiliar with CEFs, click here for a quick overview of these exciting high-yield investments).

So if you’re looking to bag solid dividends up to 8.2% at a nice discount (and who isn’t?), read on!…
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