This Media-Driven Panic Has Put Our Favorite 7%+ Yielders on Sale

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This Media-Driven Panic Has Put Our Favorite 7%+ Yielders on Sale

Don’t believe the media’s latest line that stocks—and by extension 7%+ yielding closed-end funds (CEFs)—are oversold.

Far from it!

Truth is, stocks—and bonds and real estate, for that matter—are still oversold as a result of the 2022 market crash.

You can see that in action in the chart below, with the benchmark ETF for the S&P 500 (in purple) up 11.1% since the start of 2022, while corporate bonds (in orange) are basically flat. And real estate investment trusts (REITs)—in blue—are still in the tank, down about 16%.

Don’t Believe the Hype: All Our Favorite Assets Are Still Cheap

Fact is, those are all low numbers, even for stocks: the S&P 500 is up an annualized 5.4% over the last two years and change since the start of 2022, which marked the beginning of the market’s swan dive.… Read more

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How to Collect $132,000 in Dividends on a Million Dollars

While vanilla investors worry along with the herd, we contrarians are buying. And oh, the yields we have available!

As I write to you today, I’m staring at no less than 29 income funds that yield more than 8%. Twenty-nine paying more than eight!

For retirees with a million-dollar portfolio, this is $80,000 per year in dividend income. Actually, more, because some of these funds pay up to 13%.

Why would we sell when this is the best time to buy in years? I explained this while yapping with Moe Ansari on his Market Wrap program. Moe asked me: “We hear all the ‘Doom and Gloomers’ out there.… Read more

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Early Buy Alert: These 3 Funds (Yielding Up to 7.6%) Are Set to Boom in 2022

Inflation is up, stocks are soaring (Omicron be damned!) and bargains are thin on the ground.

Well, not all stocks are soaring—one sector has fallen behind, and it’s set us up for some nice “snap back” upside in 2022, with big dividends (yielding up to 7.6%!) on the side. We’ll talk tickers in a moment. First, let’s take a 50,000-foot view of the sector we’re going to dive into and work our way down from there.

That would be real estate, specifically publicly traded real estate investment trusts (REITs), which have been left in the dust in the pandemic- (and Federal Reserve–) powered market of 2020/2021.… Read more

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These Dividend REITs Are Discounted by 12%

Real estate investment trusts (REITs) have become quite popular with income investors in recent years. And why not? These “retirement makers” are required to give 90% of their profits to their shareholders as dividends.

So, if you’re looking to retire on dividends, REITs are a natural place to look.

Problem is, their popularity comes at a price. The Vanguard Real Estate ETF (VNQ) yields just 2.5% today—pretty lame by its standards:

The Problem with Popularity: VNQ Pays Just 2.5%

A disappearing dividend isn’t the only problem with VNQ. Like most ETFs it tends to overweight the largest REITs, which typically translates into both lower overall yields and slower dividend growth.… Read more

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2 Big Dividend Blunders Everyone Makes (and how we’ll tap them for payouts up to 12.7%)

There is a proven way to grab sturdy double-digit dividends in this income-starved market.

Today we’re going to follow it. The secret? Take a contrarian approach to a group of stocks most folks have (wrongly) soured on. Those stocks would be real estate investment trusts (REITs), which yield just over 4%, on average, putting the 1.7% paid by the typical S&P 500 stock to shame.

And if you make the simple move I’ll show you shortly, you could easily triple that 4% payout! You’ll give yourself a solid chance of beating the typical REIT investor’s returns, too.

I’ll give you names and tickers in a minute, but let’s talk first about an obvious trap most investors are falling into with REITs these days.… Read more

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These 7%+ Dividends Have a “Coronavirus Discount” That Won’t Last

I don’t know why you’d try to cobble together an income stream with miserly ETFs when, thanks to this selloff, we’ve got a huge sale on closed-end funds (CEFs) throwing off life-changing 7%+ payouts.

Why are CEFs a great deal now?

In short, the coronavirus scare has caused a “panic disconnect” between many of these funds’ share prices and the value of the assets in their portfolios, known as the net asset value, or NAV.

These discounts are a quirk that only exists with CEFs, and they make our plan simple: buy when discounts are particularly wide, then ride these markdowns higher as they evaporate—pulling the fund’s market price up with them.… Read more

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This “Dividend Time Machine” Lets You Buy 7% Payouts at 2019 Prices

Let’s be honest: our lives would be much easier if we could just buy the typical S&P 500 stock, get the 7%+ dividends we need for retirement, and call it a day. Trouble is, the popular kids only pay high yields when the market’s in flames!

Like Pfizer (PFE), which yields a ho-hum 3.8% now. But if you’d bought when stocks bottomed during the financial crisis, you’d be sitting on a cash machine: back then (March 2009), Pfizer’s payout shot up to an incredible 11%!

Pfizer’s (Very) Temporary 11% Yield

Of course, you needed quick reflexes and nerves of steel to lock in that yield before it vanished in the rebound.… Read more

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A 17.6% Dividend, 36% Upside and a 2020 Investing Strategy You Won’t Believe

Right now, with 2020 just hours out, is the perfect time to show you my two-step dividend strategy for the year ahead.

We’ll also dive into four specific stocks and funds to buy. They’ll hand you 6%+ dividends now and set you on the path to unreal payouts of 17.6%+ down the road.

How Powell Crushed Savers

First, if you’re disappointed in the dividend options out there today, you can blame one man: Jay Powell. (Actually, you’ll have to get in line to dump your frustrations on the poor fellow’s head!)

We all know that Powell’s clumsy “pivot” from rate hikes to rate cuts at the start of 2019 sent stocks soaring (and dividend yields plunging—as you calculate yield by dividing a company’s annual dividend payout into is current share price).… Read more

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The World’s Best CEF Soared 466%, Yields 6.4%. Here’s How.

How the heck do you fund your retirement today, with regular stocks yielding a pathetic 1.8%?

Today I’m going to show you exactly how—and we’re going to use my favorite tool, closed-end funds (CEFs) to do it. In fact, we’re going to zero in on a particular CEF that’s the poster child for how these high-yielding funds can deliver the retirement you want on a modest nest egg—far less than that million bucks many advisors say you need.

To start, this solid fund pays a steady 6.4% dividend now—nearly four times the payout you’d get from a “regular” stock. Even better for retirees, it pays you that dividend monthly, in line with your bills.… Read more

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This Incredible Fund Soared 517% (and it’s just getting started)

Today I’m going to show you how one savvy buy can help you turn $100K into a $500,000 windfall. Plus, you’ll “automatically” build yourself a tidy monthly income stream—I’m talking $2,700+ here—without lifting a finger.

That’s enough for many folks to retire on.

At the center of it all is a little-known group of investments called closed-end funds (CEFs)—and one fund, in particular, whose name, dividend and incredible track record I’ll reveal in a moment.

For now, here are the two key things you need to know about CEFs: first, they pay huge dividends (6.9%, on average, with some paying well into the double digits).… Read more

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