These S&P 500 “Dogs” Are Set to Bounce. This 8%-Yielding CEF Will Profit

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One of the best things about closed-end funds (CEFs) is that, even though there are only about 500 or so of these 7%+ yielders out there, you can find CEFs that win in every kind of market.

So with a few clicks, you can build a diverse CEF portfolio yielding well north of 7%. (The 20 holdings in our CEF Insider service’s portfolio, for example, yield 7.7% on average and hold everything from tech stocks to municipal bonds and real estate investment trusts, or REITs.)

Below I’ve got an 8% monthly dividend payer that’s primed for “snap-back” upside as one group of stocks—those that sell discretionary products, from electronics to clothing—spring back to life.… Read more

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Has the market bottomed, or are we headed for another leg down before we can start to even think about any upside? It’s a debate that will be with us for a while yet.

But maybe not in every corner of the market. Because there’s a funny thing happening with closed-end funds (CEFs): for some of these high-yield investments, the recovery has already come.

Let me explain.

In a selloff, a CEF can get hit in a couple ways, namely from the market and from investors. In the case of regular stocks, these are the same. But for CEFs, there’s a key difference: while CEFs trade on the open market, like stocks, they have a fixed number of shares (hence the name“closed-end funds”).… Read more

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