This 8.9% Dividend Soared 178% (and It’s STILL Cheap)

Our Archive

Search completed

This 8.9% Dividend Soared 178% (and It’s STILL Cheap)

You may have noticed that since the pandemic, there’s been a somewhat perverse desire to make the economy look worse than it is.

Whether it’s concerns about a looming recession—the so-called “vibecession” we talked about last week—or worries that life is getting too expensive because of inflation, there’s a growing bias toward doom-and-gloom.

Plus, pessimistic people tend to sound serious—and for many pundits, parroting these arguments is easier than actually analyzing data.

At CEF Insider, we remain 100% data-driven, for the simple reason that it’s profitable. After all, the doom-and-gloom was at a fever pitch in late 2022, and we all know how stocks have done since.… Read more

Read More

My Advice: Park These 9%+ Paying “Convertibles” in Your Portfolio Now

Let’s talk about convertibles for a second—but not the car with a removable top that everyone thinks of when they hear that word: I’m talking about convertible bonds.

I know, a bit less flashy, right? The name causes most folks’ eyes to glaze over, but there is a (very) exciting part to this convertible-bond story: massive dividend yields. And I’m not talking the type of so-called “high” yields you get on regular stocks (3% or 4%). Or even corporate bonds, many of which pay out in the 6% to 7% range these days.

I’m talking really high yields here. Like 12% yields.… Read more

Read More

Make These 2 Mistakes and You’ll Miss a Growing 9.6% Dividend

Over a decade ago, closed-end funds (CEFs) helped me achieve financial independence. Since then I’ve seen hundreds of other people use them to get there, too. I’m certain these unloved funds—payers of 8%+ dividends—can help you do the same.

Well, I shouldn’t say “unloved.” “Misunderstood” is more accurate.

As I write this, the CEFs tracked by my CEF Insider service yield 8.3% on average. But because the CEF market is small and off the radar to most folks, many don’t know what to look for in these high-yielding funds—if they know about them at all.

Today we’re going to change that by looking at a couple common mistakes people make when choosing CEFs, and how these errors can lead them to miss out on 8%+ yielders that offer sustainable payouts and strong gain potential, too.… Read more

Read More

These 9% Dividends Crush a Dangerous Investing Myth

Stop me if you’ve heard this one: “If you buy a high-yielding investment, your big yield won’t last because they’ll cut dividends.”

I hear it a lot, so let’s talk about two funds that haven’t cut distributions in the last decade. In fact, these closed-end funds (CEFs), yielding 9% and 10%, respectively, have done the opposite, growing payouts and dropping special dividends, too!

High-Yield CEF No. 1: A “One-Click” Way to Get a Growing 9% Payout From Tech

One of my favorite CEFs comes from the biggest fund manager on earth: BlackRock, with more than $10 trillion of assets under management.… Read more

Read More

Don’t Let This “Fake News” Keep You From Safe 8%+ Dividends

With yields north of 7%, closed-end funds (CEFs) should be a staple of every American’s portfolio. Especially when you consider that the vast majority of these funds pay dividends every single month.

But the truth is, CEFs remain a niche product—only folks have taken the time to try them out realize what incredible income generators they are. (This is why I started my CEF Insider service: to bust the myths around CEFs and give members a selection of diversified funds they can use to build a retirement-changing income stream.)

Why are CEFs still off most people’s radar? Mainly due to the financial press and financial advisors, both of which have preached for decades that any yield of 7%, 9%, 10% or higher is unsustainable.… Read more

Read More

Here’s Our 3-Step CEF “Strategy Guide” for Safe 10.4% Dividends

Let’s be honest: despite today’s high interest rates, it’s still an income desert out there.

The 10-year Treasury yields 3.6%. That’s all right—much better than the 1% or so it dribbled out a couple years back. But it’s still not enough to really boost our investment income.

Which is why I’m urging all investors to take a close look at closed-end funds (CEF). You might’ve heard of these income plays. The key takeaway is that they offer much bigger dividends than stocks, ETFs or Treasuries: payouts north of 8% are common with CEFs. (The three we’ll get into below pay up to 10.4%, for example.)… Read more

Read More

2 Big Dividends (up to 7.7%): 1 Winner, 1 Loser

Let’s talk about a fund that seems to tick all the dividend-and-growth boxes we income investors demand.

Low fees? Yep. High yield? How does a 7.7% payout (nearly six times the S&P 500 average!) sound? Low volatility? You got it: this one sailed through the 2020 COVID crash, compared to the pummeling the broader market took.

One thing you should know upfront is that the fund we’re going to delve into today is an ETF, not a closed-end fund (CEF)—though we will talk about an intriguing CEF in a moment, too.

At my CEF Insider service, we don’t usually talk much about ETFs—except to skewer them for their typically low yields!… Read more

Read More

What the AT&T Dividend Cut Really Means (and 3 Huge Dividends to Buy Instead)

The once unthinkable has happened: AT&T (T), a Dividend Aristocrat that increased payouts for 30 years, said it will cut its payout nearly in half.

The move is especially infuriating because, as recently as April, we were hearing a lot about why the company would likely hike its payout in 2021, and management had stood by the dividend.

That’s now out the window—and the market’s not happy.

Dividend Cut Sends AT&T on a Wild Ride

It just goes to show you that even companies among the vaunted Dividend Aristocrats fall from grace from time to time. We all remember back in 2017, when another sacred cow, General Electric (GE), slashed its payout in half, as well.… Read more

Read More

These 7.3% Dividends Are Safe (If You Follow These 3 Steps)

If you’re on the hunt for big dividends (and who isn’t these days?), closed-end funds (CEFs) must be on your shopping list. As I write this, there are more than 500 CEFs in existence, yielding an outsized 7.3%, on average.

Compare that to the yield on the typical S&P 500 stock: a measly 1.4%!

Ten-Year Treasuries? A still-pathetic 1.7%, even after their recent big jump.

But as dividend-rich as CEFs are, some do cut their payouts sometimes, just like any other dividend-paying investment. (Though the good news here is that, even after a cut, a CEF’s yield will almost certainly crush that of a typical stock, because CEFs’ payouts are so large to begin with.)… Read more

Read More

Prediction: These 3 Hated Funds Will Soar (and Pay Big Dividends) in 2021

Let’s relegate 2020 to the trash heap (where it belongs!) and look to the new year that dawns tomorrow. I’ve got three predictions I’m going to lay out for you now, and three high-yield closed-end funds (CEFs) with dividends up to 8% that are nicely positioned to ride them to strong gains in the next 12 months and beyond.

Prediction No. 1: Home Sales Will Surge—and So Will This 8% Payer

One of the biggest financial stories of 2020 was the strong real estate market. In November, US home prices jumped 12.7%, and Zillow believes 2021 will be “the hottest [year] in recent memory.”… Read more

Read More

Categories