Sitting on Cash? 3 Dividends Up to 7.5% That’ll Sail if Markets Sink

Our Archive

Search completed

If your mattress is a bit heavy on cash these days, you’re probably grinding your teeth every day as the markets tick higher. Should you be in the market? Shouldn’t the market pull back eventually?

Here’s a solution that’ll get your “buy and hope” friends out of your face: buy some dividend machines that’ll pay you while the markets levitate and hold up just fine if we do see the dip we’re overdue for.

I’m talking specifically about three mighty “pullback-proof” dividends (yields up to 7.5%) perfect for the “cliff-edge” market we’re seeing now. More on those in a moment.… Read more

Read More

Today, the 10-year Treasury pays just 2.4%. Put a million bucks in T-Bills and you’re banking $24,000 per year. Barely above poverty levels!

Hence the appeal of closed-end funds (CEFs), which often pay 8% or better. That’s the difference between a paltry minimum-wage income of $24,000 on a million saved or a respectable $80,000 annually.

And if you’re smart about your CEF purchases, you can even buy these funds at discounts and snare some price upside to boot!

The market’s fast run-up since January 1 has made cheap CEFs just a bit harder to find. And some CEFs have become so pricey that, if you hold them, you should consider selling before their premiums fall to earth.… Read more

Read More

It’s a question that’s absolutely critical when judging a closed-end fund: how safe is the dividend?

This is particularly crucial when you consider the huge yields the average CEF offers compared to their ETF cousins. For the 2,918 ETFs available to US investors, the average payout is 1.9%, partly because 735 of these funds pay nothing at all. But even without those, the average ETF yield is still a pathetic 2.5%.

CEFs? For the over 450 covered by my CEF Insider service, the average yield is 7.3%, and only nine yield less than 1%. In fact, over 85% of CEFs yield more than 4%, while just 9% of ETFs do!… Read more

Read More

For those of you shaking your head at your portfolio’s low yield, you can actually 2X or 3X your portfolio’s yield and improve your upside potential to boot using this strategy. And it’s actually simpler than traditional stock picking.

Many income investors have mistakenly parked their capital in “safe” consumer staples like General Mills (GIS), Kimberly-Clark (KMB) and Procter & Gamble (PG) in search of yield and security. Their money was safe, all right: their cash went nowhere – straight sideways – for the last five years!

They’d have been better off “outsourcing” their dividend decisions to the great Mario Gabelli.… Read more

Read More

Think you can’t retire on anything less than a million bucks?

Many people would answer that question with a “yes.” If you’re one of them, I have great news: the “million-dollar myth” is just that, a myth.

I’ll tell you why in a second. Then I’ll reveal 4 buys throwing off a safe cash dividend yielding 8.5%—letting you fund your golden years on a lot less.

(These 4 are the tip of the iceberg, by the way. At the very end of this article, I’ll give you 20 more retirement lifesavers paying gaudy 8% average dividends, as well!)

A Million-Dollar Retirement … on $470K!?Read more

Read More

Forget the 2018 market drop—because it’s handed us a golden opportunity to grab some double-digit “bounce-back” gains in as 2019 rolls out.

I’ll tell you why I’m so excited about the year ahead in a moment. Then I’ll give you eight cheap funds set to arc higher as we move through 2019.

The kicker? Not only are these eight funds poised for big gains in the next 12 months, they throw off incredible dividend yields up to 12.6%, too!

Putting 2018 in Context

First, back to last year’s return, which came in at negative 6.1%, including dividends.

The first bit of good news here is that despite their decline, US stocks still led the rest of the world.… Read more

Read More

Today we’re going to talk about the single biggest risk you face in your golden years.

But don’t worry—I’ll also show you how to clobber that risk and set yourself up for an easy $40,000 in cash in every year of your retirement. More on that below.

First, the risk I’m talking about is the very real chance you’ll outlive your nest egg. Because a sweeping study says you could be very wrong about the length of your retirement.

A Hidden Danger

Here’s what the numbers say: in 1992, the University of Michigan asked 26,000 Americans 50 years of age and older how long they thought they’d live.… Read more

Read More

First-level investors are at it again, crowing that now is a great time to give the vaunted Dividend Aristocrats another look.

(You’ve probably heard of these darlings of the income world: they’re the 53 stocks that have hiked their dividends for 25 straight years or more.)

Desperate for a Deal

So why is now supposedly a great time to buy these payout poster boys?

Because according to a recent Barron’s article, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL), the passive fund that holds all 53 of these stocks, is trading at 18.1 times forecast earnings for this fiscal year. That’s below the average of 18.8 over the last three years.…
Read more

Read More

The overheating yield on the 10-Year Treasury note has investors scrambling for interest-rate (and inflation) insurance.

So today I’m going to give you 4 proven strategies—and 9 terrific investments—that will give you just that. Plus we’ll grab massive dividend yields (up to 9.6%!) and upside too.

More on all of this shortly. First, we need to talk about the one move you don’t want to make right now.

The Worst Mistake You Can Make When Rates Climb

When rates rise, folks holding long-duration bonds take a double hit, because their bonds drop in value as newer, higher-yielding ones come on the market—causing them to miss out on a shot at a bigger income stream, too!…
Read more

Read More

Of all the things investors ask me about closed-end funds, the main one is leverage. (A close No. 2 is CEF return of capital, which I discussed in a recent article here.)

Yes, CEFs often borrow money and invest it in stocks or bonds. That scares some people, who then ask me if a leveraged CEF is safe.

The answer is: sometimes. (Below I’ll show you 2 CEFs with 6.5%+ dividend yields that are using leverage perfectly to slingshot their shareholders to double-digit gains.)

You see, leverage can boost your return in a bull market and magnify your loss in a bear market.…
Read more

Read More

Categories