These 3 Funds (Yielding 10.2%) Could Pay for Your Whole Retirement

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These 3 Funds (Yielding 10.2%) Could Pay for Your Whole Retirement

With the recent pullback from the market’s high this year, we’ve got a nice second chance to buy some terrific dividend stocks cheap. But don’t waste your time with lame payers like General Mills (GIS), with its 2.5% yield. Or the miserly 2.1% you get from a so-called “Dividend Aristocrat” like McDonald’s (MCD).

Even though inflation is trending downward, it’s still at 5%. That’s well ahead of these pathetic blue-chip yields—and with the economy still performing well, it could be a while yet before it slows meaningfully from here.

Bottom line: We just can’t afford to own low payers like these any longer.… Read more

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How to Play (Overdone) Real Estate Worries for 8.1% Dividends

Here at Contrarian Outlook, we love to get questions from readers, and I recently got one from a CEF Insider member about commercial real estate, after Bank of America (BAC) recently said the sector could be the next one to tumble.

Let’s dive into that, because this fear has been driven by the same kind of overwrought media coverage we saw with regional banks (an issue that’s been addressed, by the way, with no depositors or taxpayers losing money).

And that fiasco, you no doubt know, gave us a nice “buy the dip” opportunity on, well, pretty well everything.

The media has set up these commercial real estate worries, too, and that’s highlighting the value of an 8.1%-paying closed-end fund (CEF) holding real estate investment trusts (REITs) we’ll talk about below (not to mention the five REIT CEFs in our CEF Insider portfolio).… Read more

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Forget the Dividend Aristocrats: This “3-Click” Portfolio Yields 10.5%

Despite last week’s market pop, there are still plenty of terrific dividend buys out there. But don’t waste your time with lame payers like General Mills (GIS), with its 2.7% yield. Or the miserly 2.2% you get from a so-called “Dividend Aristocrat” like McDonald’s (MCD).

Inflation is still at 7.7%! That’s far ahead of these pathetic blue-chip yields. We just can’t afford to own low payers like these any longer.

We need much more income if we want to achieve the dream scenario: a retirement funded entirely by dividends. That’s the path we’re going down today, with three closed-end funds (CEFs) boasting an incredible average yield of 10.5%.… Read more

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The 60/40 Portfolio Can’t Hold a Candle to This 10.4% Dividend Strategy

I hate to hear about investors using “rules” like the 60/40 portfolio (where you devote 60% of your holdings to stocks and the rest to bonds) to invest their hard-earned cash.

The problem with “rules” like this one is that they lack the ability to adjust to changing markets, like the mess we’ve been living through this year, which has walloped stocks and bonds in equal measure.

Advisors See the Light on Oversimplified “Rules” Like the 60/40 Portfolio

It seems like advisors and the business media are finally accepting this hard truth. Recently, banks like Goldman Sachs (GS) and JPMorgan Chase & Co.… Read more

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This 6.6% Dividend Is on a Rare “Discount Sale” (But Not for Long)

There’s a group of dividend payers out there whose businesses are doing better than they were before the COVID mess, but their stocks are still ridiculously cheap today.

Best of all, we contrarian income seekers can get these stocks at an even deeper discount than regular folks can—while collecting a healthy 6.6% dividend.

The trick? Buy them through a closed-end fund (CEF) like the one we’ll discuss below.

But let’s not get ahead of ourselves. The investments we’re going to buy through this CEF are real estate investment trusts (REITs), which own and rent out various types of properties, from shopping malls to warehouses and cellphone towers.… Read more

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Beat the Recession AND Inflation With This “3-D” Portfolio (Yields 8%)

When it comes to high-yield closed-end funds (CEFs), I’m a big fan of the “three Ds”: discounts, diversification and—of course—dividends!

These days, a “3-D” portfolio is a snap to put together, with CEF dividends at multi-year highs and oversold discounts everywhere across the asset class.

Below, we’ll look at a three-fund, bargain-priced “3-D” CEF portfolio you can buy today. It yields 8% now and gives you the diversification you need to reduce your volatility—and collect your payouts in peace.

I know that preaching diversification at a time when bonds, stocks and everything else is down might sound a bit outdated, but over time, this time-tested strategy always pays off.… Read more

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Play This “Quiet Shift” in Housing for 7% Dividends and Upside

Demand for rental property is literally going through the roof—and we can play the trend for a rock-solid 7% dividend that can be had at a discount!

What’s driving this opportunity? Higher interest rates. As you can see below, the average 30-year mortgage issued today bears an interest rate near 5%, a level we haven’t come close to since the subprime-mortgage crisis.

Mortgage Rates Soar

The trend is so aggressive that it’s getting analysts and journalists into full-blown panic mode, as they begin to report on what I call “seller’s remorse.”

Seeing how rates are soaring and home values are hitting a bump, sellers are already reducing their asking prices and looking to offload property as fast as possible.… Read more

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This 7.4%-Yielding Fund Profits as Rates Rise (and Pays Dividends Monthly)

As difficult as this selloff has been for all of us, it has left some attractive (and discounted) dividends on the board, especially in high-yield closed-end funds (CEFs).

I know it’s tough to buy in a market like this, but the dividends we’re going to talk about today actually benefit from rising inflation, posting higher and higher cash flows as the CPI shoots higher and higher, too.

These are the companies we want to be in now, both to collect their high dividends through today’s tire fire and to profit when the market waters (inevitably) calm and investors finally take notice of these stocks’ sturdy cash flows.… Read more

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Get Paid Every Month With These “Unicorn” 7.7%-Yielding Funds

If you’re relying on income from your portfolio, you know how annoying it is to manage a collection of quarterly dividend payers.

Take five of the most popular dividend stocks on the market today: Johnson & Johnson (JNJ), JPMorgan Chase & Co. (JPM), Home Depot (HD), Procter & Gamble (PG) and Bank of America (BAC).

These are staples of every investor’s portfolio, but a route to a steady income stream they are not! Here’s what your monthly payouts would look like with this quintet if you held, say, $100,000 in each one, for a $500,000 total investment:


Source: CEF Insider

That’s a nightmare!… Read more

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A 3-Fund Mini-Portfolio “Built for 2022” Yielding 6.7% (With Upside)

Investors sometimes tell me that closed-end funds (CEFs) are complicated—riddled with jargon-y terms like discounts to NAV and net investment income (NII).

The truth is, while it may take a little bit of time to learn the ropes, the effort pays off in spades, since CEFs can get you about $3,000 per month in dividend income on a $500K investment! That could mean retiring a decade or more before folks who rely on low-yielding S&P 500 stocks or ETFs.

(And of course, if you’re a member of my CEF Insider service, I do the legwork for you, letting you collect our portfolio’s 7.3% average yield, with upside, without having to spend hours in front of a computer screen.)… Read more

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