Colossal Cash Machines: 5 CEF Yields of 10% or More

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Colossal Cash Machines: 5 CEF Yields of 10% or More

Bull or bear? Who cares when we can collect dividends between 10.1% and 11.8%.

That’s not a typo. The S&P 500 pays 1.7%. The 10-year Treasury yields two points more at 3.7%.

That’s better—but it ain’t 11.8%!

The same million-dollar retirement portfolio can either generate $17,000, $37,000 or $118,000 per year. Tough choice!

And better yet, the double-digit dividends I mentioned aren’t penny stocks. We’re talking about diversified funds, with dozens of holdings, managed by skilled advisors that often have decades of experience at the helm.

How Do You Spell “Massive Income”? C-E-F.

A couple of weeks ago, we discussed CEFs versus ETFs:

“If I can give you just one piece of advice to start 2023, it’s this: do not trust your dividend income to ETFs!”

… Read more

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Colossal Cash Machines: 5 CEF Yields of 10% or More

Bull or bear? Who cares when we can collect dividends between 10.1% and 11.8%.

That’s not a typo. The S&P 500 pays 1.7%. The 10-year Treasury yields two points more at 3.7%.

That’s better—but it ain’t 11.8%!

The same million-dollar retirement portfolio can either generate $17,000, $37,000 or $118,000 per year. Tough choice!

And better yet, the double-digit dividends I mentioned aren’t penny stocks. We’re talking about diversified funds, with dozens of holdings, managed by skilled advisors that often have decades of experience at the helm.

How Do You Spell “Massive Income”? C-E-F.

A couple of weeks ago, we discussed CEFs versus ETFs:

“If I can give you just one piece of advice to start 2023, it’s this: do not trust your dividend income to ETFs!”

… Read more

Read More

“Like 2018 All Over Again”: 3 Huge Dividends Set to Soar as Rates Rise

This stock market selloff has gone way too far—and it’s pumped up the dividend yields on some of our favorite high-yield closed-end funds (CEFs).

That means it’s time to buy. I’ll name three CEFs the panicked masses have mistakenly tossed over the side in a moment. Together, these three snubbed funds throw off an 8.7% average dividend. Plus they’re trading at a nice “double discount”: that is, the CEFs themselves are cheap and their holdings, which consist of top US and international stocks, are way oversold in this latest market fracas, too.

History Is on Our Side

When considering opportunities like this one, it pays to look at history.… Read more

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What’s Better Than 7%-8% Yields? A 17% Sale on Them.

Historically, for whatever reason, stocks have made most of their gains between November 1 and May 1. (Hence the phrase “sell in May and go away.”)

I won’t bore you with the statistical details because they don’t matter for our purposes. Every year is unique, and we treat each as such. But, for our contrarian edge, it is helpful that the onset of fall provokes fear in the hearts of mainstream investors.

The S&P 500 is acting like it’s about to slip off a cliff. It’s been a year since the market’s last meaningful correction. We’re in the fragile half of the year and, seasonally speaking, September and October tend to be particularly weak.… Read more

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My Latest Read on Inflation (and a 5.3% Dividend Ripe for Buying)

Manufacturing is as cyclical a business as there is, and it’s about to take off, driven by two vastly misunderstood factors:

  1. An uptick in inflation, and
  2. A big jump in stimulus spending

What most people don’t get is that these two trends are inextricably linked. And sitting right where they meet is a closed-end fund (CEF) trading for 88 cents on the dollar and just waiting to pay us a fat 5.3% dividend.

Let’s start by taking these trends one at a time.

Inflation: Likely Not as Hot as Most People Think

Let me start by saying that the breathless media coverage of inflation is focused entirely on how it will crimp stock market returns.… Read more

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5 Dividends Up to 10.8% to Buy on This Dip

Are you trying to grind out a livable retirement on dividends alone? It’s possible, and it doesn’t require millions and millions already in the bank. (Even today, with interest rates in the tank.)

However, we must step outside the mainstream to achieve this. After all, why mess around with a standard $15,600 a year in retirement income when we can “supersize” that annual yield haul up to $108,000?

The “standard” $15.6K is what we get listening to mainstream financial advisors and pundits, and buying the vanilla ETFs that they recommend. The latter $108K is what we can achieve with a little bit of original thinking.… Read more

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3 Fund Buys for 8.3% Yields and 47% Upside

Remember when I said there were more than 2,400 closed-end funds, mutual funds and ETFs beating the S&P 500?

Well, today we’re going to dive into three of those funds. Unlike many of their cousins, these aren’t one-hit wonders.

All three boast outsized dividend payouts far larger than those of any S&P 500 stock: all the way up to 8.3%!

They also give you instant diversification and world-class management. You can see that in each fund’s stock-picking prowess, which is translating into gains that crush the S&P 500 SPDR ETF (SPY):

Leading the Index by a Mile

So let’s dig deeper to see how these funds tick and what place they might have in your portfolio.…
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