My Crisis-Investing Strategy for 7.1% Yearly Dividends (forever)

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My Crisis-Investing Strategy for 7.1% Yearly Dividends (forever)

This crisis has hit income-seekers—particularly retirees—hard. After the stomach-churning March selloff came the slashing of “sacred cow” dividends, like those of senior-care providers Ventas (VTR) and Welltower (WELL).

Look to Closed-End Funds for Retirement Income

It’s understandable (and healthy!) if the past few months have made you extra cautious when picking dividend stocks. The good news on the dividend front is that you can still find plenty of high, safe payouts in my favorite corner of the high-yield market: closed-end funds (CEFs).

CEFs are a great pick for retirement income today, for three reasons. First, they still give you access to large-cap stocks you know well: mainstays like Visa (V), Apple (AAPL) and Johnson & Johnson (JNJ) feature in many equity-CEF portfolios.… Read more

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New: 2 Steps for 9.9% Dividends in This Bubbly Market

Need more proof this market is completely upside down? Look no further than this mess with Hertz Global Holdings (HTZ).

You likely know the story: the car-rental chain, run off the road by the coronavirus, filed for bankruptcy over the Memorial Day weekend. On the first trading day afterward, May 26, the stock fell to $0.56 … then soared 10X!

Investors Compete to See Who Can Lose the Most

It’s pulled back a bit since, but is still up 200% from where it stood right after its bankruptcy filing.

And get this: 159,000 of users of the popular Robinhood trading app owned Hertz as of June 19, according to Robintrack.… Read more

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A 5.8% Dividend With 126% Upside Ahead (contrarians only)

There’s a strong buying opportunity unfolding in an ignored corner of the market right now. Steady dividends of 5.8% (and higher) are waiting for savvy contrarians who jump on it.

By “savvy contrarians,” I, of course, mean us!

And the corner of the market I’m referring to is municipal bonds.

If you’ve been following the muni-bond saga over the last two months, you might find my enthusiasm a bit unfounded. After all, the coronavirus is hammering the finances of cities and states across the country and driving up the risk of muni-bond defaults—right? Not so fast.

Your Muni Default Risk? 0.042%… Read more

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3 “Recession-Fighter” Funds Paying 6%+ (Tax-Free)

Far too many investors ignore dividends, especially in a bull market. It’s easy to see why: with stocks racking up yearly double-digit gains, it’s tough to get worked up about a sub-2% payout (which is what most S&P 500 names pay).

But a crisis flips the script, making safe cash dividends a lot more attractive. And luckily for us, there’s one ignored corner of the market where we can grab payouts that triple what the typical stock dribbles out.

That would be in municipal bonds, or “munis,” for short. They’re a kind of debt instrument issued by local governments throughout the US.… Read more

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Crush Your Tax Bill. Bag 4.3% Dividends (with Upside). Here’s How.

Last Thursday, we took a close look at how closed-end funds (CEFs) holding municipal bonds—issued by states and cities to fund infrastructure projects—can help stabilize your portfolio in times like these.

Today we’re going to dig deeper and put some numbers behind how these CEFs can do even more, including handing you a dividend that’s double what you’d get on stocks—and these payouts are tax-free, to boot!

First, here’s what “munis” did during the selloff in the last week of February:

Muni Bonds Hold the Line—Literally

When stocks plummeted, munis were fine. And why wouldn’t they be? As senior government debts, municipal bonds have strict regulations and restrictions that make them less risky than stocks.… Read more

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Crush Your Tax Bill. Bag 4.3% Dividends (with Upside). Here’s How.

Last Thursday, we took a close look at how closed-end funds (CEFs) holding municipal bonds—issued by states and cities to fund infrastructure projects—can help stabilize your portfolio in times like these.

Today we’re going to dig deeper and put some numbers behind how these CEFs can do even more, including handing you a dividend that’s double what you’d get on stocks—and these payouts are tax-free, to boot!

First, here’s what “munis” did during the selloff in the last week of February:

Muni Bonds Hold the Line—Literally

When stocks plummeted, munis were fine. And why wouldn’t they be? As senior government debts, municipal bonds have strict regulations and restrictions that make them less risky than stocks.… Read more

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3 Safe Strategies for This Market Crash (and an 8.4% Dividend to Buy Now)

When the market is selling off, it’s easy to panic as big losses rack up in your account.

Here’s the thing, though: going to cash, and fully exposing yourself to inflation, is a guaranteed way to lose. It’s doubly sad to see first-level investors doing this when there’s a time-tested way to survive meltdowns, keep your income stream intact and cut your portfolio’s volatility.

It doesn’t involve panic selling. Instead, it revolves around three simple rules: diversify, be patient and keep a big income stream. Let’s walk through each of these.

  1. Diversify

The first key to surviving a meltdown is to be in several markets at once.… Read more

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These 39 Funds Are the Cure for Coronavirus Fears (and yield 4%+)

Let’s be honest: it’s hard not to be rattled by last week’s double-digit drop in the S&P 500.

And it’s true that if the coronavirus continues to spread, we could see more people holed up in their homes, meaning less spending and less economic activity. Some analysts are already calling for a coronavirus-driven recession.

But let’s not forget that American economic data looks very good right now. The Federal Reserve sees GDP rising a healthy 2.6% in the first quarter of 2020, even accounting for the coronavirus’s impacts. Personal incomes and spending are also rising at healthy levels, so there’s no reason to panic.… Read more

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Dreading Tax Day? This 4.7%-Yielding Fund Is for You

Americans are blessed with a source of high passive income that is entirely tax free. Thanks to long-standing legislation designed to encourage more investment in our communities, municipal bonds give tax-free income to most people, and since you can get these “munis” in a fund that pays out 4.7% dividends, getting a really high income stream without the tax burdens has gotten really easy.

But not everyone is celebrating.

A lot of fears about muni bonds have blanketed the financial press over the last few years, in no small part because muni bonds, with their low volatility and steady income streams, tend to appeal to investors who want to avoid risky assets the most.… Read more

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These Unsung Funds Soared 18%, Pay Tax-Free Dividends

Today I’m going to show you how one lucky group of investors nailed a once-in-a-lifetime shot at a huge, tax-free dividend stream and a quick 18% gain, too!

Well, not exactly “once-in-a-lifetime.” Because this opportunity is still waiting for you today—you just need to know how to tap it.

In a moment, I’ll give you the goods (including a name and ticker) on a closed-end fund (CEF) to target now. It hands you a 4.2% dividend you likely won’t have to pay a penny of federal tax on (and your payout could be exempt from state taxes, as well). 

To cut to the chase, thanks to its lucrative tax breaks, this fund’s 4.2%… Read more

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