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

Our Archive

Search completed

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

Read More

Bill Ackman Is Going to Send These 8%+ Dividends Soaring

Closed-end funds (CEFs)—our favorite 8%+ yielding investments—have a new (and popular!) fan. And he’s making a big move I see sending CEF prices higher.

Bill Ackman Discovers What We’ve Known for Years

I’m talking about Bill Ackman, one of the best-known activist investors out there. You’ve probably seen the head of Pershing Square Capital Management, a hedge fund with $18.3 billion in assets, in the media. He’s a regular commentator.

Ackman has scored some big wins in his career, such as his 2005 investment in The Wendy’s Co. (WEN). But he’s probably better known for his dramatic misses, like his losing bid to change the board of directors at Target Corp.… Read more

Read More

5 Steps to Turn $500K Into $39,965.51 Per Year

$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 $39,965.51 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

Read More

What Every Investor Gets Wrong About AI (and Where the Real Profits Are)

If you’ve been following the AI space lately (and honestly, who hasn’t?), you’ve probably seen stories about tech investors feeling a bit shortchanged on the profits they’re getting.

That’s actually good news for the rest of us—a sign the market is maturing and ripe to be tapped for income.

Specialists Often Miss the Bigger Picture

Experts make this mistake all the time. There are a few reasons for this, but probably the biggest is overreach: You can be a wizard at technology, you can even be a genius at investing in technology, but you can still be wrong if growth happens differently than you expect.… Read more

Read More

16 “All-American” Dividends Yielding Up to 18%

Remember a decade or so back, when we heard over and over again that the coming decades would be all about China?

If you ignored that prediction and stuck with well-established US investments (especially dividend-paying US stocks and funds), you made a smart move. (We’ve done the same since we launched our CEF Insider service back in 2017.)

Our conviction continues to be that the USA is the best place to find top dividend payers—including our favorite high-yielding closed-end funds (CEFs).

I’ll give you 16 such US-focused CEFs to consider in a moment—as well as specific looks at two 17%+ (!)… Read more

Read More

New Year, New Portfolio: Start With These 2 “Dividend Deals”

Let’s kick off 2024 with great news: despite the Santa Claus rally, there are still some sweet dividend deals on the board—many hiding in plain sight.

In a second, we’ll name names and dive into my 2024 outlook, including my forecast for a 2024 recession and exactly what we’re going to be looking for in dividend payers (and growers) this year.

First, let’s tee up 2024 by reviewing the game tape from the last quarter of ’23.

Buying Fear Drove Fast Double-Digit Gains in Late ’23

Readers of my Contrarian Income Report service will recognize the Gabelli Dividend & Income Trust (GDV), one of the picks we grabbed when panic was running high in October.… Read more

Read More

This Unfounded Worry Could Keep You From 20%+ Gains in 2024

With the S&P 500 up double-digits this year, the media is at it again—cranking up worries that we’re headed for another crash.

“Stock-Market Crash: Expert Shares Huge ‘Red Flag’ Signaling Recession,” says Business Insider. “Will the Stock Market Crash? This Hedge-Funder Thinks So,” declares New York Magazine.

And on it goes.

I suppose it makes sense, given that the S&P 500’s roughly 19% gain so far this year is a lot more than its typical return. Thing is, 2023 does not exist in a vacuum divorced from history, and just a tiny bit of history shows we’re not yet in a bull market, and stocks are not overheated, despite their recent gains.… Read more

Read More

Did You Miss the Rally? 5 Still-Cheap Dividends Up to 12.3%

Mr. and Ms. Market are manic. Always have been, always will be. My fellow contrarian, they reminded us of this fact yet again.

Fortunately we were zigging while the broader crowd was zagging.

The herd’s “FOMO panic” last week pushed many of our stocks higher. Vanilla investors covered their ill-timed short positions and scrambled to buy bargains. Like the dividend deals we bought in October!

Did you miss out? Have cash suddenly burning a hole in your pocket? If so, no worries, a few select dividend deals remain.

I’m talking about yields up to 12.3% and discounts up to—get this—46%.… Read more

Read More

4 Steps to Fast 49% Total Returns from Safe Dividend Payers

Last week in this column, I said it was time to buy. Today, we’ll clarify that timeline.

Buy and hold forever? Nah. Not now. Maybe never again!

To everyone that shook their head at this careful contrarian last week, thinking there is too much uncertainty in the world, well, I agree with you. The “threatdown” is real—which is why I’m not interested in holding names until the end of time.

We have conflict in the Middle East, a still-hawkish Federal Reserve, spiraling government debt and stubborn inflation. The news isn’t pretty.

That said, precarious markets create short-term and medium-term opportunity.… Read more

Read More

“Quiet QE” Means Sizzling 60% Profits for Us

Sixty percent gains, needless to say, are nice!

They can be the difference between a comfortable retirement and, well, one where we’re a bit too concerned about losses.

A million dollars is plenty to retire on dividends. But isn’t $1,600,000 even better?

With a million, an 8% yielding portfolio dishes $80,000 per year in dividends. Nice.

But that 60%-higher portfolio pays $128,200. Even nicer.

Why am I teasing 60%? Because we have the best opportunity to bank big gains—from safe dividend stocks, no less!—since the fall of 2020.

The opportunity is here thanks to a form of “quiet QE” from the Federal Reserve.… Read more

Read More

Categories