These Huge Yields (Up to 9.1%) Have a “Secret” Discount Set to Vanish

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I’m just going to come out and say it: If you want to be financially independent (and who doesn’t?), you must own closed-end funds (CEFs).

For those “in the know” about CEFs, the reason is simple: massive yields. As I write, closed-end funds yield 9.1% on average. And game-changing dividends like that are only one way CEFs reward us—and I’d argue they’re not even the best one!

The best-in-class CEFs out there—and here I’d definitely include the three we’re going to get into below—also offer strong total returns, with price gains and dividends combining to hand us overall returns of 10%+ yearly.… Read more

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Having a diversified portfolio is pretty much Investing 101, right?

I mean, it’s one of the first things we all learn as investors. But there’s a problem here: Going for balance in “regular” stocks, bonds or ETFs can mean leaving income on the table.

To see what I’m getting at here, check out the average yields on two ETFs many people buy for stock and bond exposure. For stocks, I likely don’t have to tell you about the SPDR S&P 500 ETF Trust (SPY). It’s the popular S&P 500 tracker. And it yields a microscopic 1.2%.

There are plenty of options on the bond side, but let’s go with a fairly high-yielding ETF, the SPDR Bloomberg High-Yield Bond ETF (JNK).… Read more

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