While most income investors stare at their portfolios, searching for the next shoe to drop, we contrarian yield collectors were treated to a rare treat this week. A dividend increase—from an income fund that now yields 8%!
We’ll talk specifics in a moment, but let’s start with the cash flow stream. This fund buys “preferred” shares, a brand of stock that most mainstream investors are not familiar with. The “first-level” types typically limit themselves to the common shares of stock, which are what you receive when you place an order to buy with your broker.
Preferred are there, too, if you know where to look.… Read more