One group of funds is doing something very unusual right now: they’re raising their dividends by double digits! And those huge hikes have driven the yields on some of these unsung income plays well above 7%.
Today we’re going to jump on this red-hot contrarian opportunity.
These smartly run dividend payers (and growers!) are closed-end funds (CEFs) that hold floating-rate loans. These assets are often overlooked, which is too bad, because they’re corporate bonds that do the opposite of what most bonds do. That makes them perfect buys for upside in today’s market, when “regular” corporate bonds’ prices are plunging.
Let me explain how floating-rate loans work, and how we’ll squeeze them for strong gains and growing 7%+ dividends.… Read more