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

Our Archive

Search completed

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

How to Build a $250,000 Nest Egg in 5 Years (With 10% Dividends)

Four years ago, I published an article detailing how a young upper-middle-class professional could quit working and still survive on dividends alone in just five years. It was a claim that many folks thought was impossible to achieve (and they told me so in the comments!).

But history has proven that, in fact, it was true.

Today I want to show you how following the advice I gave back then would have produced financial independence (or an income stream that could cover basic needs) in just five years—and how you can replicate that same success today.

How It Works

Back then, I made three arguments:

  1. A young professional earning $70,000 a year and, being very disciplined, managed to save about two-thirds of that income, could use the stock market to build a substantial nest egg in half a decade.

… Read more

Read More

3 Big Dividends (up to 6.9%) That Thrive in any Market

If this wobbly market has you parked on the sidelines, worrying the big 2019 rally might evaporate at any second, I have good news: this is still a great time to buy.

But you need to buy carefully if we want to maximize our upside (and protect ourselves from a 2008-style meltdown).

The solution?

Top-quality closed-end funds (CEFs) handing you dividend cash that more than doubles (and in many cases more than triples) what your typical S&P 500 stock pays. I’ll give you three solid CEF picks (selling at fire-sale prices up to 23% off) at the end of this article.… Read more

Read More

Revealed: My Safe Fund-Picking Strategy for 7.5%+ Payouts

Here’s something few people realize about closed-end funds (CEFs): sometimes, when it comes to these funds, matching the market means you’re actually beating the market.

Let me show you what I mean using the AGIC Equity and Convertible Income Fund (NIE), a CEF I recommended earlier this year. NIE has been meeting the S&P 500’s performance, though most people don’t know it.

And by meeting the S&P but giving investors a 7.5% dividend yield, it’s helped income investors actually beat the market if they’d chosen a “dumb” index fund like the SPDR S&P 500 ETF (SPY) instead.

First, let’s address the hidden returns.… Read more

Read More

This Rare “Double Discount” in Stocks Will Vanish in May

We need to talk about a rare double discount in the stock market that’s out there now—just waiting for us to jump on it.

And doing so couldn’t be easier. It all comes down to 3 funds primed to spike when one of these discounts closes—and then spike again when the second one snaps shut!

Both of these ridiculous markdowns are already starting to narrow, so we need to make our move soon.

One other thing: these 3 funds pay massive dividends—from 7.4% to 11.7%!

Before I reveal the names of these funds, let’s talk about the first discount: the massive undervaluation of the stock market—and when we can expect investors to go from extreme fear to extreme greed.…
Read more

Read More

Categories