How to Keep Your Cool, Collect 8%+ Dividends, as This Pullback Grinds On

Our Archive

Search completed

How to Keep Your Cool, Collect 8%+ Dividends, as This Pullback Grinds On

With all the panic over the headlines these days, it’s a good time for us contrarians to step back and take stock—because there are high-yield bargains out there that can help us navigate this mess.

(Hint: the best hunting ground for us contrarians today is in a group of roughly 500 funds called closed-end funds, or CEFs, many of which pay 8%+ yields and trade at ridiculous discounts. More on them, and a 9.9%-paying fund that might be a good fit for you if you’re investing for the long term, in a moment.)

First, if you’re feeling nervous about your portfolio, let’s step back a bit.… Read more

Read More

4 Cheap (for now) Dividends Yielding Up to 9.8%

One thing we love about closed-end funds (beyond the dividends: many CEFs yield 7%+ today) is the big discounts to net asset value, or NAV, that these funds hand us.

These discounts only exist with CEFs. Here’s why: CEFs typically can’t issue new shares to new investors after their IPOs, so their shares get bid up and down on the market, independent of how much their portfolios are actually worth.

These discounts can get quite wide—sometimes 20% and higher. At that kind of a discount, we’re essentially paying 78 cents for every dollar of assets the fund holds!

Our plan, then, is simple: buy when we get an unusual discount like that and then ride along as it vanishes.… Read more

Read More

3 “Perfect for 2022” Dividends Paying 8.2% (And Selling for 20% Off)

I shudder when folks tell me their portfolios can’t give them a decent income stream. Because I know there’s an easy way for them to get safe 8%+ payouts—and everyone misses it.

Let’s be honest. When it comes to investing, most people limit themselves to the blue chip stocks of the S&P 500. The problem? These stocks pay a miserly 1.2% average yield. So you’re getting a measly $1,200 in yearly dividend income for every $100K invested!

No one is retiring on that—unless they have a couple million bucks lying around.

But there is another way. It’s a potent income generator I’ve been specializing in for more than a decade—and sharing with investors through my CEF Insider service.… Read more

Read More

This 9.3% Dividend Has a Secret (Hint: It’s Far Safer Than It Looks)

One of the so-called “rules” of income investing is that you can get a high dividend or a sustainable dividend from a stock or fund—but not both.

And to be fair, that is true of some investments. But there are plenty of exceptions, too, chief among them an asset class that sports a little-known “trick” that gives us blockbuster 9% dividends that are more than sustainable over the long run.

The CEF Secret

That asset class would be closed-end funds (CEFs), and the “trick” ties into the fund’s discount to net asset value (NAV, or the value of the investments in the fund’s portfolio).… Read more

Read More

Categories