This Soaring 8.8% Dividend Is Cheap (you won’t believe why)

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The Contrary Investing Report > NYSE:ISD

Today I’m going to show you nothing less than a “dividend unicorn”: a closed-end fund (CEF) yielding 8.8% that’s raised its payout 24% in just the last six months. (And yes, it’s primed for many more hikes, too.)

Get this: because of the weirdness of the CEF market, this cash machine is still cheap today—trading at 13% off its “retail” price!

Let’s dive in.

I’m talking about the PGIM High Yield Bond Fund (ISD). It’s a smaller CEF (with just $552 million in assets). That small size helps set up our chance to buy cheap—and I’ll say more about why this deal exists in just a moment.… Read more

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The PGIM High Yield Bond Fund (ISD) trades at a huge discount that’s going to disappear soon.

Before I explain why, let me tell you something else about this fund: it boasts a huge 8.4% dividend yield. In other words, you’d get $700 per month—or $8,400 a year—in income on every $100,000 invested. And you should consider getting in now, because ISD is set to soar.

A New Fund

For years, ISD provided a solid and reliable return, thanks to its strategy. The fund would buy corporate bonds that expired in just a couple years (or less), so there was less risk of any company going bankrupt or defaulting.… Read more

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A lot more investors have been emailing me lately, fearful of a market downturn. This tells me one thing: today’s market is a scared market.

But you don’t need to be scared. In fact, thanks to overhyped investor fears, you can easily lock in 7% dividends and prepare yourself for a downturn with less risk than you’d get buying stocks directly.

The key? The 5 unloved (for now) funds I’ll show you in a moment. First, though, you might be wondering why I say these funds are less risky than individual stocks.

For one, each of these 5 hold hundreds of assets, spreading your cash out in a way that a basket of a few stocks can’t.… Read more

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It’s one of the biggest worries I hear from investors who hold bonds: what’s going to happen to my portfolio when the Federal Reserve raises interest rates?

My short answer is always the same: don’t worry—it’s not as big of a deal as you think.

That’s true for many bond funds out there—but there are some that are still ticking time bombs because they’re poorly managed. The worst offenders are the ones that aren’t managed at all—the “dumb” funds that blindly track the index and keep a ton of bonds from near-bankrupt companies alongside much better issues.

Funds like the iShares iBoxx High Yield Corporate Bond ETF (JNK) and the SPDR Bloomberg Barclays High Yield Bond ETF (HYG) are the worst offenders here.…
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