Is There Any Reason to Hold a CEF Paying Less Than 5%?

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Only here at Contrarian Outlook can we banter for an hour-plus about closed-end funds, utilities and oil dividends! This site is our sanctuary, my income friends.

I’m talking about our Contrarian Outlook 2024 Q2 VIP Webcast. Every quarter we fire up GoToWebinar and discuss the top high-yield stocks and bonds on my mind, along with your questions. A big thanks to my 1,151 subscriber friends who attended the meeting live.

On the call I fielded some questions about closed-end funds (CEFs) that we didn’t have time to cover. I said I’d read them all and, well, I did. So, let’s address them now.… Read more

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“Coach Brett, how many points do I have?”

My star player, Captain K, was dominating the basketball game. He’d steal the ball, storm down the court, and drain the shot. Then retreat into a defensive position and do it all over again.

Two points after two points after two points. I’d have lost count if I had to count. Fortunately though, we weren’t keeping score.

Most leagues these days don’t keep score when the players are only five years old. The run is more important than the result.

But my man K knew he was “killing it,” as his dad told him from the sidelines!… 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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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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