3 Popular Gold Funds to Dump Now (and a Top 9% Dividend to Buy Now)

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3 Popular Gold Funds to Dump Now (and a Top 9% Dividend to Buy Now)

Here’s a surprise from a die-hard closed-end fund (CEF) fan like me: Sometimes CEFs aren’t your best bet.

I’ll admit, that’s tough for me to say—especially when the average CEF yields a historically high 9.1%. (CEF yields are usually around 8.5%). That high yield partly reflects the fact that many CEFs are trading at steep discounts to their net asset value (NAV).

Translation: The fund is trading for less than what its underlying portfolio is worth. That, in turn, has resulted in lower prices among some CEFs, along with higher yields (as yields and prices move in opposite directions).

All of this simply means that CEFs are generally out of favor right now, which is an opportunity for us.… Read more

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Gold Just Got Cheaper and It’s Jet Fuel for This 8.3% Dividend

Gold prices have taken a breather—and we’re getting a rare opportunity to snag two shimmering dividend plays paying up to 8.3%.

Here’s why this setup is on the table: While recession worries are still valid, they’re overblown. Plus, the doomsayers are missing critical details set to kick gold higher. Let’s break all of this down, then get into the 8.3% (and growing) payouts the archaic metal is poised to deliver.

The “No-Landing” Economy: Alive, Well—and Bullish for Gold

Last fall, we talked about a “no-landing” economy in the US, where growth ticks along, but inflation sticks around, too. Fast-forward to today, and that’s pretty much how things have played out.… Read more

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My Top Gold Stocks, Ranked Worst to First (and When to Buy #1)

So far in this trade war, there is one “winner” left on the board: gold. The barbarous relic has glittered amidst the financial carnage.

And while everyone is climbing aboard now, we contrarians see a better buy window ahead. Below, we’ll “dig into” 4 tickers to get ready, ranked from worst to first (hint: our top play has a dividend that soars with gold prices).

Before we get to that, though, let’s look at what’s really going on here—starting with Treasuries. Yields on the 10-year spiked from sub-4% to 4.5% in a matter of days at the height of the trade war tantrum.… Read more

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Why I’m Avoiding This “Gold” Fund Despite Its 8.4% Yield

At my CEF Insider service, we focus on the long term, picking up closed-end funds that give us the capital we need to grow our wealth, plus the high income (I’m talking 8%+ yields here) we need to gain—and keep!—our financial freedom.

That said, there’s no denying that one particular investment (that’s known for neither income nor long-term wealth building!) is getting a lot of attention these days: gold.

So let’s talk about the yellow metal and why we’ve avoided it at CEF Insider, despite its recent rise. We’ll also look at a closed-end fund (CEF) that looks like a good play on gold but is, in fact, far from it.… Read more

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This So-Called Inflation Hedge Is a Disaster. Buy This 8.9% Dividend Instead

For some folks, it’s almost a reflex to buy gold when inflation hits or volatility ramps up. In times like those, they simply flock to the yellow metal—no questions asked.

But buying gold as a safe haven is a terrible idea, for one simple reason: it doesn’t work.

The dumpster fire year we’re living through now provides an excellent example of gold’s ineffectiveness as an inflation hedge: while inflation soared (it sits at 8.3% as of August), gold has gone the other way, plunging 6.4% since January 1.

That lousy performance isn’t just a one-off. Gold has actually fallen 7% in the last decade.… Read more

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How to “Inflation-Proof” Your Portfolio (Hint: It’s Not Gold)

No matter the financial headlines, all roads will—eventually—lead to (even higher) inflation. So, we should use pullbacks and rallies alike to make sure we are inflation-protecting our retirement portfolios.

We’ll talk specific stocks and funds in a moment. First, let’s review the mechanics of money printing.

The accommodative Federal Reserve has already increased the M2 Money Supply by 38% since the start of 2020! That’s a lot of dough that has flowed into the financial markets. With the Fed continuing to stand by to support the stock and bond markets, we should look past current concerns and realize that the “solution” to any setbacks will be more easy money.… Read more

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Buy These “Powell-Proof” Dividends for 10% Payouts, 100% Upside

What the heck would a jump in inflation mean for our dividends? I’m getting that question from readers a lot these days, so today we’re going to take a closer look.

Then we’ll dive into three sectors—and three dividend payers (including one yielding an eye-popping 10%)—you’ll want to put on your radar now.

All three of these stocks boast high yields and/or strong dividend growth, plus big upside potential. Taken together, I expect their total returns to easily outrun any rise in inflation—and interest rates—we’ll likely see.

Money Printer Revs Up

The argument that we’re heading for a jump in inflation is pretty clear—a few days back, we saw the consumer price index (CPI), the go-to measure of inflation, pop 2.6% in March from a year ago, way more than expected.… Read more

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These Dividends Grow 111%+ (They’re Perfect for 2021)

Let’s not assume our retirement savings will benefit from the Federal Reserve’s bout of 2020 money printing. Inflation could be a real problem, as soon as 2021. So let’s talk about stocks that are not only protected but likely to benefit from Jay Powell’s prolific “efforts.”

(In other words, dividend stocks that’ll double while investors are fixated on deflation.)

When it comes to inflation, many folks have a dangerous blind spot. They recall 2008, and the Fed’s then-extraordinary actions late that year, which gave us a narrow escape from deflation, and no inflation to speak of.

Just think back to that time.… Read more

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Beat Inflation, Grow Your Dividends 10,000%. Here’s How.

If you’ve read my articles in the last few weeks, you may have noticed I’ve been writing about inflation more lately. I’m doing so because your income portfolios—especially your bonds!—are at risk as a result of recent money printing.

My recent monetary focus has taken many readers by surprise. After all, we haven’t seen sustained inflation in 40 years. Nothing like a four-decade lull to lure an investor into a false sense of “60/40 retirement portfolio” security!

But even though we’re staring at day-to-day deflation right now, with lockdowns hitting demand for most products beyond the essentials, make no mistake: the ingredients for inflation are there.… Read more

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How to Squeeze a 13.6% Dividend From Gold (No One Does This)

Let’s face it: you hardly ever get decent income from commodity stocks. And when you do, these payouts are usually first to get the axe next time, say, oil nosedives.

And with oil doing this…

Oil Falls—Oil Companies’ Profits to Follow

… you may worry that it’s about to get harder to squeeze income out of oil companies.

Still, if you’re worried about inflation or the Federal Reserve distorting markets, or if you just want to hedge your stock portfolio, you’ll likely turn to commodities at some point. And there’s no more established inflation hedge than gold.

There’s just one problem: gold doesn’t produce anything.… Read more

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