This 5.2% Dividend Is 40% Off (Should You Buy?)

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This 5.2% Dividend Is 40% Off (Should You Buy?)

One of the things we contrarian income seekers love about closed-end funds (CEFs) is that they often sell for less than what they’re worth.

CEFs’ discounts are especially appealing these days, as the market levitates into the stratosphere. Because when you buy stocks through a CEF trading at, say, a 10% discount to net asset value (NAV, or the value of the investments in its portfolio), you can get into great companies like Apple (AAPL), Microsoft (MSFT) or Visa (V) for 90 cents on the dollar.

This is a great trick—one you can’t find in ETFs or mutual funds. Plus, CEFs yield 7.3%, on average, today, so you get a monster payout in addition to your discount.… Read more

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Is This 24% Dividend (Paid Monthly!) Too Good to Be True?

“It’s my money, and I want it now!”

That’s the rallying cry of everyday folks in commercials for J.G. Wentworth, a financial services firm that offers lump-sum cash payments for structured settlements, annuities, lottery payments and more. (If you’ve never seen one of these TV spots, I suggest you try one out. They’re so bad they’re good.)

Every income investor could (and probably should) take a cue from its motto. To quote another spot: “Show us the money!”

Monthly dividend stocks, of course, pay more often than any other income investment. Dividend checks coming in every 30 days are especially handy for retirees who have bills to pay.… Read more

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5 Bargain Funds With Safe 11% Yields

If you’ve been on the sidelines as this market grinds higher, you’re probably suffering a severe case of FOMO (fear of missing out).

It’s a terrible feeling, but today I’m going to cure you of it entirely, because it’s not too late to jump in!

The key is to zero in on a group of investments known as closed-end funds.

I’ll tell you about them—and introduce you to 5 attractive CEFs—in a moment. But for now, here’s the upshot: these overlooked, easy-to-buy funds are beating the market, but some are still priced at big discounts to their “true” value.

That means you’re not only going to get a strong return here, but you’ll also get a lot of income, too.…
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