3 Ignored Funds With 8.2% Dividends (Paid Monthly)

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Let’s shrug off today’s “dividend desert” and do something most folks think is impossible—ridiculous, even. We’re going to replace our monthly salary with a huge income stream from a group of closed-end funds (CEFs) that yield 7% or more (sometimes a lot more!).

The math here is simple: at a 7% dividend, you’ll have just shy of $3,000 ($2,917, to be precise) flowing into your account every month on a $500K investment. And yes, these dividends do flow your way monthly, right in line with your bills.

These CEFs have been paying these dividends for years, in some cases decades. And there are plenty of them, too: my CEF Insider service tracks 117 CEFs yielding over 7% and paying out every month.… Read more

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There’s one word that strikes utter terror into the hearts of many investors: leverage.

But it really shouldn’t—and today I’m going to show you how to make sure you’re using leverage the right way, while minimizing your risk and reaping the biggest gains you can.

As you probably know, closed-end funds (CEFs) commonly use leverage to amp up their investment returns (and their dividends, which boast an average yield of around 7%). That’s fed their strong gains this year, as the Federal Reserve rolled out three consecutive rate cuts:

CEFs on a Tear

The CEF Insider index tracker has shown double-digit gains across the board, with equity CEFs slightly outperforming the S&P 500’s 26% year-to-date gains.… Read more

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Many investors hear the word “leverage” and immediately get nervous—but the truth is, borrowed cash is actually vital to big closed-end fund (CEF) returns.

I’ll show you why—and how a huge misunderstanding about leverage will lead to big gains for CEFs this year—in a moment.

Before we get to that, though, we need to understand why this one simple word sends investors into a cold sweat in the first place.

A 90-Year Old Tale

The cloud hanging over leverage stretches back to the crash of 1929, and tales of stockbrokers who borrowed too much cash before the collapse and then leaped out their office windows.… Read more

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