This Fund Is a Special-Dividend Machine (and It Yields 10.5% Now)

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Today we’re going to take a look at an unusual closed-end fund (CEF) that hands us a rich 10.5% dividend that comes our way monthly (and grows!). And it sends regular special dividends our way, too.

When you add those “bonus” payouts in, this fund often pays life-changing yields of up to 15%!

The fund in question is the PIMCO Dynamic Income Fund (PDI), a dividend titan that should be on any closed-end fund (CEF) investor’s watch list. (In fact, if you’re a subscriber to Contrarian Income Report, a sister to my CEF Insider service, you already know PDI—it recently landed in the CIR portfolio through a merger we’ll discuss a little later.)… Read more

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Thinking of joining the “Great Resignation” crowd and dumping your 9-to-5 gig? Let’s talk about how you can do it with outsized 7%+ dividends that easily keep the bills paid.

I’m going to show you the powerful secret some of these “quitters” are using today. It all turns on a unique kind of asset called a closed-end fund (CEF) that’ll be our source for those rock-steady 7%+ dividends (paid monthly, to boot!).

More Investors Discover the Income-Producing Power of CEFs

First off, a funny thing is happening as people dump their day jobs: they’re investing more, with the number of new investors jumping 15% in 2020, and scores of folks who already invest building out their portfolios further.… Read more

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I get plenty of questions about specific closed-end funds from members of my CEF Insider service, which focuses on quick-moving smaller CEFs (here I mean those with sub-$1-billion market caps).

We love these CEF “small fry” because they hand us big dividends (7%+ yields are common in this corner of the CEF market) at a bargain, because these funds get little coverage from Wall Street and the mainstream media.

But when they do get “found,” their discounts disappear fast, catapulting us to some nice price gains to go along with our big payouts.

New 6.5%-Yielding PIMCO Fund: Buy, Hold or Sell?Read more

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Three of the most successful closed-end funds (CEFs) in history have done something unprecedented—both for the funds themselves and the company that manages them. They merged.

PIMCO is arguably the most successful CEF manager around, and investors know it: they’ve bid up almost all the company’s funds to premiums to net asset value, or NAV (in other words, their market prices are higher than the per-share value of their portfolios). 

The company has always kept its funds separate, even though they have many similarities, so it came as a surprise when it announced that its PIMCO Dynamic Credit and Mortgage Fund (PCI), PIMCO Dynamic Income Fund (PDI) and PIMCO Income Opportunities Fund (PKO) would be merged into the same fund.Read more

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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.

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Today I want to show you how you can retire on $405,000—and with just five buys, too! Put together, these five stocks and funds hand you a 7.4%-yielding portfolio that will pay you reliably for decades.

First, though, let’s quickly run through how our “5-buy” portfolio will work—and how it proves the so-called “experts,” who say you need a million dollars or more to clock out—are dead wrong.

A Million-Dollar Retirement … for $405K!?

To be smack in the middle of income in America, you need to bring in about $30,000 per year. So, at a 7.4% yield, you’d need to invest $405,000.… Read more

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Nine weeks ago, our fellow income investors were concerned about rising tariff tensions and falling stock prices. (Sound familiar?) So, in late May, we discussed seven dividend payers (yielding 6% on average) that wouldn’t go down if stocks-at-large kept dropping.

The broader markets soon reversed, as they usually do when pessimism is running high. But our defensive dividend machines did even better. Five out of my seven “never go down” plays beat the S&P 500. On average they returned 12.5% (including their big dividends) over the last nine weeks. A percent a week or better will sure boost your retirement account quickly!… Read more

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What’s better than a portfolio that will pay you a $117,000 salary every year in retirement?

How about one that delivers a consistent paycheck each and every month that you can plan all of your regular expenses around?

I’ll show you how, via with three already-diversified high-yield monthly dividend stocks. But first, let me show you how most income investors get it wrong.

Mistake 1: Cheating Themselves on Yield

Sure, yield isn’t everything—you want growth potential, dividend growth potential and safety, too—but it matters. Consider this: Every 1% in yield equates to $10,000 on a $1 million nest egg. Thus, 2% is $20,000, 3% is $30,000, and so forth.… Read more

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Today I’ll show you how I helped investors sidestep a “silent” payout cut in a popular closed-end fund (CEF). We’ll also look at how to approach this fan fave today—and how this tale can help us keep our nest eggs (and income!) safe.

Calling Out the Cool Kid

I’m talking about the PIMCO Dynamic Income Fund (PDI), which I flagged nearly two years ago, when it was at the height of its fame thanks to its outsized 9% dividend yield.

Even though first-level investors couldn’t get enough of PDI, I fired off a warning flare, writing that its massive 8.4% premium to net asset value (NAV, or the value of the corporate and government bonds and mortgage-backed securities it held) was under threat.… Read more

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Since launching my CEF Insider service in early 2018, the picks I’ve given subscribers have outperformed the broader CEF market. That’s prompted a lot of people to ask me how I choose the CEFs I do—especially in a market as wild as the one we’ve seen in the last couple months.

My process is both complicated and straightforward. I have a checklist of 52 points I go through to choose the right fund. I apply these one by one, first using some of the broader points to screen funds, then zooming in closer, using more complex analysis to bring you my very best buys.… Read more

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