3 Clicks to Start 2023 With a 10.5% Yield

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Today we’re going to build ourselves a portfolio that hands us a 10.5% yield. And we’re going to do it with just three funds.

The appeal of a 10.5% payout is tough to deny: when you’re getting that much of your investment back every year in dividends, you’ll recoup the whole thing in less than 10 years. Everything else is gravy!

What’s more, two of the three funds below—all of which are closed-end funds (CEFs)—pay dividends monthly, so we’re getting our payouts in line with our bills. That’s unheard-of in the world of vanilla stocks. Almost all of them make us wait three long months for our next payout.… Read more

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I heard the same question from readers all through 2022: when will we back up the truck and start buying again?

Your dividend strategist sympathizes. We “pivoted” early, starting back in late 2021, selling early and often in my Contrarian Income Report and Hidden Yields dividend-investing services.

Heck, we coined the term “pivot” long before the press did! And while Wall Street has been betting on a rebound all year, the truth is, they’ve been wrong, wrong and wrong again. 

Now 2023 is here and we’re sitting on a big pile of cash. Of course, cash doesn’t pay dividends. But our mattresses are still outperforming 90% of investors out there!… Read more

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Rising rates have sunk bond prices—and sent their yields higher.

The upshot? Now is a good time to add high-quality corporate bonds to your portfolio. And if you do so through one closed-end fund (CEF) we’ll name in a second, you’ll be able to do so with a 13.4% dividend that grows.

To be honest, bonds have already started to rise, and we’ve been taking advantage in my CEF Insider service. In October, for example, we picked up the Nuveen Core Plus Impact Fund (NPCT), which yields 11.3% today. We’ve grabbed a 6.8% return so far, including one dividend payout of 10 cents a share.… Read more

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Today we’re in a situation that looks a lot like 2016. And back then, some savvy contrarians tapped it to grab quick 62%+ returns. The same setup is back again—and so is our chance for more upside, plus yields north of 10%.

There are two closed-end funds (CEFs) poised to deliver those high yields (and overall returns); we’ll compare two popular options in a moment. First, let’s delve into the state of the corporate-bond market, because there are a lot of misconceptions floating around right now.

“Junk” Bonds Not as Risky as They Seem

You might know high-yield bonds by their nickname: junk bonds.… Read more

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Whether you own a Treasury or the typical dividend stock these days, you’re still losing money after inflation.

I know what you’re thinking: tell me something I don’t know!

But there’s a solution hiding in plain sight: closed-end funds (CEFs), a widely overlooked (and publicly traded) asset class that often throws off rich payouts of 8% or more. We’ll do a deep dive into these scandalously overlooked income plays, and how they pay those big (and often monthly) dividends in a moment.

Here’s the top-line takeaway, though: by going with a CEF, you won’t have to sell the blue chips you own now.… Read more

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One of the market’s smartest contrarian players just made a shocking move—and we dividend investors need to pay attention.

The contrarian in question? PIMCO, the company that revolutionized the humble closed-end fund (CEF). If you’re reading this, you’ve likely at least heard of CEFs, which are renowned for big dividend payouts: safe 7%+ yields are the hallmark of these (too) often-overlooked investment vehicles.

If you’ve never heard of PIMCO, all you need to know is that the company is to CEFs what Apple (AAPL) is to tech.

And PIMCO’s latest move is yet another signal that now is a great time to boost our positions in the 18 buy-rated funds in the CEF Insider portfolio.… Read more

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There’s a glaring disconnect out there between the health of the economy (still strong) and the mood of investors (terrible). It’s opened a window for us to grab some solid closed-end funds (CEFs) throwing off yields of 8%+.

This is especially true if you’re investing for the long term, which, if you are investing for income like this, you should be.

We’re going to talk about three such high-income plays today (one of which offers an 11.5% payout that’s growing) and dive just a little deeper into why this opening exists for us.

Fast Growth + Worried Investors = Best Time to Buy CEFs

If you’re a bit nervous about investing right now, I get it.… Read more

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When markets are down, there’s one group of investors who can shrug off the dip because they don’t need to sell. You’re no doubt part of this group—I’m talking about income investors.

With dividends, of course, you can keep your cash flow going regardless of short-term panics over things like interest-rate hikes and geopolitical unrest. Because the cash keeps coming in, you don’t need to sell during these times and can instead use your dividends to keep your bills paid—or maybe even buy the dip in the markets, thereby building your income stream further.

But where can you get reliable income that won’t be hit by the Fed’s moves and other events that are mostly beyond our control?… Read more

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The yield on the 10-year Treasury has rallied near 3%. Yet there’s no way you and I are retiring off that pittance!

Hence the appeal of closed-end funds (CEFs), which regularly pay 7% or better. That’s the difference between a paltry income below $30,000 on a million buck nest egg or a respectable $70,000 annually.

And if you’re smart about your CEF purchases, you can even buy these funds at discounts and snare some price upside to boot!

With the markets in flux (to say the least), now is a good time to review the principles of successful CEF investing. They are more nuanced than classic stock picking because we’re analyzing managers, strategies and holdings versus simple businesses models.… Read more

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Most investors I speak to have no idea how much they’ll need to retire (and with the uncertainty we’re facing today, that’s totally understandable!).

So let’s talk about that—and focus on closed-end funds (CEF), totally overlooked investments that could let you retire on dividends alone, possibly on as little as $325K. That’s the ultimate way to get peace of mind these days, because you don’t have to worry about selling into a pullback to keep your income stream intact.

The Income Side

When calculating how much you’ll need to clock out of the workforce, you really only need to know three things:

  1. How much you’ll spend in your first year of retirement.

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