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

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I know that preaching diversification at a time when bonds, stocks and everything else is down might sound a bit outdated, but over time, this time-tested strategy always pays off.… Read more

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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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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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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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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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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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Mainstream investors are stuck with cheesy dividend ETFs paying measly sub-3% yields. But we contrarians can grab ourselves a lot more dividend cash with a “switch” in our portfolio that more than doubles our yield, to 6.6%!

We’ll be fully diversified, too, with bonds, S&P 500 stocks and real estate populating our holdings—703 investments in all. And they’re all hand-picked by expert money managers who evaluate credit and interest rate risk for us.

Plus, this “6.6% retirement solution” has more price upside! The 3 battleship funds we’ll get into below are geared to grind higher as they pay their dividends, no matter what the market does.… Read more

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If you’re on the lookout for an expert to help you build your nest egg—and bulk up your dividend stream to, say, a 6%+ yield—you have two main choices: a professional wealth manager or an investment advisory service (or a newsletter, as they’re more commonly known).

Which is for you? Let’s break down both options. Then we’ll dive into the kind of three-fund portfolio a newsletter might tip you off to, with a healthy 6.1% income stream and a history of double-digit yearly returns, too.

Wealth Managers Charge More, But They’re a Help in a Crisis

With active wealth management, the main concern most people have is fees.… Read more

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Investors in high-yield real estate investment trusts (REITs) are still living in 2020, and we can tap that for 7% dividends and price upside in the coming weeks.

Let’s start where just about every investment story begins these days: the spring 2020 crash. One thing that stood out during that chaotic time was the relative ease with which workers made the shift to working from home. That gave rise to fears that companies would cut back on office space, an obvious negative for REITs that own office towers.

On the retail side, mall REITs started chasing rent checks from store owners, who were dealing with both COVID restrictions and the accelerated shift to e-commerce.… Read more

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