My First Call of 2024: Grab This 9.8% Payer While It’s Still Cheap

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My First Call of 2024: Grab This 9.8% Payer While It’s Still Cheap

Think back one year for a moment. You’ll surely recall that back in early ’23, the media was in high dudgeon, warning about an oncoming recession.

It never happened, of course, as we gleaned by simply following the data at my CEF Insider high-yielding investing service. But the “hangover” from that missed prediction is still—still!—creating opportunities for us to pick up high-yielding closed-end funds (CEFs) at bargain prices.

Here’s how: now that we’re 12 months out from those incorrect doomsday predictions, many media outlets are backtracking. Consider this recent quote from Bloomberg Opinion columnist Nir Kaissar:

“This time last year, a lot of people were convinced the US would slide into recession in 2023.… Read more

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These 7%+ Dividends Have a “Coronavirus Discount” That Won’t Last

I don’t know why you’d try to cobble together an income stream with miserly ETFs when, thanks to this selloff, we’ve got a huge sale on closed-end funds (CEFs) throwing off life-changing 7%+ payouts.

Why are CEFs a great deal now?

In short, the coronavirus scare has caused a “panic disconnect” between many of these funds’ share prices and the value of the assets in their portfolios, known as the net asset value, or NAV.

These discounts are a quirk that only exists with CEFs, and they make our plan simple: buy when discounts are particularly wide, then ride these markdowns higher as they evaporate—pulling the fund’s market price up with them.… Read more

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3 Hopeless ETFs Ranked From “Disastrous” to “Poor” (You likely own #1.)

Is last week’s rate-cut temper tantrum the start of a bigger meltdown?

That’s the big question—and today we’re going to do what we have to do to protect our nest egg—and set ourselves up for big gains (and dividends) in the long run.

That means we may only have days to prepare—maybe even hours.

The one thing we’re not going to do? Sell and go to cash.

Because I know I don’t have to tell you that “money under the mattress” pays no dividend—and isn’t even safe, for that matter: you’re guaranteed to bleed money after inflation!

No way.

Instead, we’re going to play it smart—deftly pruning our portfolio of laggards and shifting into a set of low-key dividends that will balloon our income (and nest egg) for decades to come.… Read more

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5 Dividend Stocks That’ll Keep You From Drowning in Retirement

Your 2% bonds are going to make you broke. You need to buy these safe, higher paying dividends instead.

We’ll get to these “real yields” (up to 9.3%!) in a moment. First, let’s recap. Treasury yields just took their biggest bath in weeks, sending the 10-year T-note to 2%. Less than a year ago, the 10-year was flirting with (a not exactly nosebleed) 3%.

And now that Fed chair Jay Powell has fallen in love with the doves (whether by choice or by force), he’s going to keep rates low for a long time. Which means bonds will have no place in a retirement portfolio geared towards income.… Read more

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The Best 6%+ Yields for the New Tax Plan

As income investors react to the new tax plan, it’s a good bet that some are overreacting to certain aspects of it. They always do.

There’s confusion between high yielding fixed income, and pure junk. There’s also a flood of tax-advantaged paper about to hit the market, creating bargains for smart buyers.

The result? Yields up to 10%, with some price upside to boot!

Bargain #1: “Smart” High-Yield Bond Funds for 7.5%+

If you hold high-yield (often called junk) bonds, you may have noticed they’ve sold off as the Republicans’ tax talk became serious. They’ve taken down other assets, too – some for good reason, some not.…
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