How to Snag Yields Up To 13% Without Sticking Your Neck Out

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It’s a great time to be an income investor. We have yields averaging 11.1% staring us in the face.

All we need to do is step past the broader fear, and we can dial in these dynamic dividends. Which oh by the way, pay us monthly.

To do so we’ll look past traditional ETFs in favor of select closed-end funds (CEFs). These vehicles simply pay more than popular funds. Plus, they tend to be more closely managed—a good thing in manic markets like these.

Getting paid every 30 days smooths out our dividend income. This is what a vanilla portfolio of quarterly payers looks like.… Read more

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“Buy low, sell high.” It’s the oldest investor slogan there is—and the deadliest one, too!

You simply cannot afford to give in to this “wisdom” today, even though it’s tempting. Now that we’ve seen a couple of days of weakness, you might be wondering if the recent all-time high was a sign to sell—and if all-time highs are often signs to sell. But do that now and you’ll certainly leave huge income—and upside—on the table.

Instead, now is the time to buy, especially closed-end funds (CEFs) paying dividends of 7% and up. I’ll give you an example of one of these high yielders—which drops its payout into your account monthly—further on.… Read more

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Volatility is back! With the market whipsawing again, you’re likely seeing more red in your portfolio these days.

At times like this, you might be tempted to give in to emotion and sell. That’s understandable—self-preservation is, after all, our most powerful instinct.

But keep your nerve. Because now is the time for contrarians like us to get greedy for yield—and upside.

Here’s why: American companies’ earnings are strong, their revenues are rising, and there are no indications of a recession anytime soon.

I’ll go through these points one by one, because it’s important to see how the data disagrees with the panicky noise the media publishes these days.… Read more

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Today we’re going to dive into a question subscribers to our CEF Insider service often ask: what happens to a closed-end fund’s dividend when stocks take a tumble?

The answer is coming up shortly (and if you’re at all worried about this levitating market suddenly snapping back, you’re going to like what I have to show you).

Then I’m going to reveal one 6.6%-paying fund whose management is dialed in to market swings and know how to protect their investors’ income when things get rough.

How do I know? Because they did just that in the 2008-09 crisis.

More on that shortly.… Read more

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The trade-war panic is in full retreat—and it’s left us three ridiculously cheap funds set to soar even higher than the market in the coming months.

Best of all, we’ll bag some very nice dividends from this trio: I’m talking outsized yields up to 7.4%!

Before I show them to you, let’s talk about why the market looks set to head higher.

Right now, the SPDR S&P 500 ETF (SPY) is up 18.3% for 2019. This sounds too good to last, but keep in mind that this jump started near the depths of the late 2018 correction—a low level.

That makes the year-to-date number misleading; a longer-term view shows signs of consistent and slow recovery from 2018’s major volatility:

A Steadying Market

There are a lot of reasons for this, but the two most important ones are good signs for stocks.… Read more

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Here’s something you may not know about closed-end funds (CEFs): they can give you a much lower tax bill than if you buy and sell stocks yourself.

And if you follow the first-level strategy most folks do and invest through an index fund like the SPDR S&P 500 ETF (SPY), you’re almost certainly paying more tax than you need to. Worse, you’re stuck with a 2% dividend that falls way short of the 8%+ CEF payouts you need to fund your retirement on a reasonably sized nest egg.

CEFs’ tax advantages stem from the fact that they have skilled pros running the show—and these managers know how to cut the taxes you’ll pay on the big dividends they send you.… Read more

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If you want to diversify, get a strong—and growing—dividend and dodge risky speculation, the SPDR S&P Dividend ETF (SDY) may seem like a no-brainer.

But buying this fund would be a huge mistake!

Today I’m going to show you why, and help you avoid a couple other seemingly obvious moves that could steer you into big trouble. Further on, I’ll reveal a terrific fund paying an outsized monthly dividend (yielding 7.9%) to buy now and tuck away for two decades or more.

First, back to SDY, which has beaten the S&P 500 over the past decade:

SDY Throws Us the Bait …

At the same time, the fund has shown solid dividend growth, as well as some massive special dividends that have helped its payouts grow substantially over the years:

… and Sets the Hook

So why not just buy this fund and call it a day?… Read more

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It’s a question that’s absolutely critical when judging a closed-end fund: how safe is the dividend?

This is particularly crucial when you consider the huge yields the average CEF offers compared to their ETF cousins. For the 2,918 ETFs available to US investors, the average payout is 1.9%, partly because 735 of these funds pay nothing at all. But even without those, the average ETF yield is still a pathetic 2.5%.

CEFs? For the over 450 covered by my CEF Insider service, the average yield is 7.3%, and only nine yield less than 1%. In fact, over 85% of CEFs yield more than 4%, while just 9% of ETFs do!… Read more

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Most dividend investors understandably love the idea of an 8% No Withdrawal Portfolio. It’s a simple yet “game changing” idea that you don’t hear much from mainstream pundits and advisors.

Find stocks that pay safe 7%, 8% or more and you can retire comfortably, living off dividend checks while your initial capital stays intact (or even appreciates).

Now this strategy is a bit more complicated than simply finding 8% yields and buying them. Granted the recent stock market pullback has benefited investors like us because we can snag more dividends for our dollar. Yields are higher overall, and that’s a good thing.… Read more

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The stock market has just started recovering from its early-February lows—and there are 3 ridiculously cheap funds set to jump even higher while paying massive dividends.

Before I show them to you, let’s talk a bit about why the market is set to go higher.

Right now, the SPDR S&P 500 ETF (SPY) is up 4.8% for 2018, but more importantly, it’s still off its 2018 high, reached in early January—and it’s only started to show signs of consistent recovery from February’s low in the last few weeks:

A Steadying Market

There are a lot of reasons for this, but the most important happened in April—just at the start of the upward move in stocks in the chart above.…
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