This “Bubble Fear” Is the Best Setup We’ve Had in Years. These 6%+ Divvies Are the Play

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This “Bubble Fear” Is the Best Setup We’ve Had in Years. These 6%+ Divvies Are the Play

What a time to be a contrarian!

The economy is en fuego as AI boosts productivity (even if, yes, it’s cooling payrolls). Yet the mainstream crowd is hunkered down, terrified of an AI bubble.

That sets up some very attractive deals in 8%-paying closed-end funds (CEFs), many of which have gone on sale in the last few weeks.

2 “North Stars” Show Us What to Do Now

To get a feel for the setup in front of us, all we need to do is look at two things.

First, the Atlanta Fed’s GDPNow indicator, the most current economic “barometer” we have.… Read more

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Earn $40,794.30 in Dividends on Just $500K – Here’s How

$500K can be enough money to retire on. Even as early as age 50!

The trick is to convert the pile of cash into cash flow that can pay the bills. I’m talking about $40,794.30 per year in dividend income on that nest egg, thanks to 8%+ average yields.

These are passive payouts that show up every quarter or, in many cases, every month.

Meanwhile, we keep that $500K nest egg intact. Or, better yet, grind that principal higher steadily and safely.

Got more in your retirement account? Cool—more monthly dividend income for you!

We’ll talk specific stocks, funds and yields in a moment.… Read more

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Yes, AI Is Coming for Jobs But These 6%+ Dividends Are a “Silver Lining”

By now, it’s glaringly obvious: AI is replacing workers. And it’s boosting corporate bottom lines as it does.

I call this the “growth-without-hiring” trend, and it’s accelerating. Today we’re going to grab our share in the form of big dividends (up to 8.1%) and upside, too.

Latest Payroll Report Tells a New (Yet Familiar) Story

The latest evidence that “growth without hiring” is the real deal? The September ADP payrolls report, which showed that companies cut 32,000 positions. The August numbers were also revised to 3,000 losses, not the 54,000 gains originally reported.

With numbers like those, you’d expect the US to be in recession, or close to it.… Read more

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The Surprising Link Between AI, Jobs and 3 BIG Dividends (up to 8.5%)

Still wondering if AI will replace human workers? Well, you can stop. Because it’s already happening—and boosting corporate profits as it does.

That’s tough news for workers, of course. But there’s a silver lining for those of us investing for dividends. Because the “growth-without-hiring” trend AI has touched off is setting up one of the strongest income opportunities I’ve seen in years. (I’ll name three AI plays yielding up to 8.5% below.)

Wait, AI is setting the stage for big dividends?

I know. AI is known for a lot of things—many of which have been, er, less than helpful, such as infringing on copyrights and forcing McNuggets on pleading McDonald’s (MCD) drive-thru customers.… Read more

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Earn $42,353.38 in Dividends on Just $500K. Here’s How

$500K can be enough money to retire on. Even as early as age 50!

The trick is to convert the pile of cash into cash flow that can pay the bills. I’m talking about $42,353.38 per year in dividend income on that nest egg, thanks to 8%+ average yields.

These are passive payouts that show up every quarter or, better yet, every month. Meanwhile, we keep that $500K nest egg intact. Or, better yet, grind that principal higher steadily and safely.

Got more in your retirement account? Cool—more monthly dividend income for you!

We’ll talk specific stocks, funds and yields in a moment.… Read more

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This “Crisis” Is a Boon for Contrarians (and This 6.7% Dividend)

We hear a lot of chatter in the business media about productivity these days—specifically how it could decline in the US (and, by extension, hit our gains from stocks—and stock-focused CEFs).

Today we’re going to look at why this fear is overblown, and how we income investors can profit—and collect a 6.7% dividend at a 13% discount—off that disconnect.

US productivity, for its part, rises by about 2% on average per year. As we discussed a couple weeks back, the S&P 500 has posted a 10.4% annualized gain since the late 1980s, and we can say that rising productivity accounts for about a fifth of that, so about a 2% gain in stocks on an annualized basis.… Read more

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Here Are the Dividend Moves We’re Making (and the Timing) in This Selloff

I never thought I’d see the day when “yen carry trade” was splashed across the financial news. But here we are.

We talked about this weird setup, and how it sparked the August 5 market crash, in Monday’s article. Today we’re going to get into what it all means for closed-end funds (CEFs), including the opportunities now available to us in these high yielders.

First up, while the press was quick to paint the correction as a “made in Japan” event, we do have some signs of a slowdown starting to appear in America.

Is This the Recession We’ve Been Waiting For?… Read more

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Here Are the Dividend Moves We’re Making (and the Timing) in This Selloff

I never thought I’d see the day when “yen carry trade” was splashed across the financial news. But here we are.

We talked about this weird setup, and how it sparked the August 5 market crash, in Monday’s article. Today we’re going to get into what it all means for closed-end funds (CEFs), including the opportunities now available to us in these high yielders.

First up, while the press was quick to paint the correction as a “made in Japan” event, we do have some signs of a slowdown starting to appear in America.

Is This the Recession We’ve Been Waiting For?… Read more

Read More

The First Postmortem on Google, and CEFs Paying Up to 9.5% to Avoid

Google is in trouble. The stock market is beginning to sniff that out.

As an income investor, you may think that you don’t care. But you probably should. We all need to take note, because Alphabet (GOOGL) shares are everywhere.

Let’s make sure that Google’s rotting core product—and business model—don’t stink up our perfectly good retirement portfolio. In a moment, I’ll name-check specific ETFs and CEFs (closed-end funds) to avoid.

First, let me give the world’s first postmortem on Google. It was a heck of a run for a technology product, more than 20 years as the “go to” search engine.… Read more

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In a Nosebleed Market These Cheap Dividends Dish Up to 14%

With the market at nosebleed valuations, where can we look for value and yield?

Let’s turn to our favorite three-letter acronym. C-E-Fs.

As usual we have a handful of closed-end funds (CEFs) getting no love from Wall Street. This is perfect for us as we’re talking about dividends up to 14% and discounts between 10% and 15%.

In other words, these fat payers are trading for 85 to 90 cents on the dollar. Let’s discuss.

Gabelli Dividend & Income Trust (GDV)
Distribution Rate: 5.8%
Discount to NAV: 15.0%

We begin with Gabelli Dividend & Income Trust (GDV), a top-rate closed-end fund whose management team includes legendary value investor Mario Gabelli.… Read more

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