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

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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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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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Dividend Bargain Hunt: The Huge 12.5% Payout Everyone Has Missed

With the market scraping all-time highs—and dividend yields scraping historic lows—you’re probably thinking there’s nowhere you can find big, safe dividends with at least some price upside right now.

Well, you’re far from alone. The good news is, there’s still one place where the undervalued dividend payers you crave are common.

Today I’m going to show you exactly where to find these buys, in a sector rife with bargain-priced high dividends yielding all the way up to 12.5%. That’s more than 10X what the average S&P 500 stock pays.

Step 1 of Our Dividend Bargain Hunt: Step Back … Way Back

This gives us a nice opportunity to hone our value-seeking skills, too, by doing one of my favorite things—drilling down into the latest earnings numbers, which is something too few investors do.… Read more

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This CEF Soared 51.9% in 2019. Time to Sell?

If you’ve been holding the Cohen & Steers Quality Income Realty Fund (RQI)—a fund I wrote about a lot in 2019—you’ve done very well indeed. RQI has dominated, with its market-price return surging 51.9%, including gains and dividends, since the start of 2019.

So today we’re going to take a closer look at this superstar fund to see what lies ahead, and whether it’s still worthy of your cash, even with its big 2019 gains.

If you’re not familiar with RQI, it owns real estate investment trusts (REITs), such as cell-tower owners Crown Castle International (CCI) and American Tower (AMT), warehouse landlord Prologis (PLD) and data-center REIT Equinix (EQIX).… 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 “Crisis-Resistant” Fund Yields 6.7% (and crushed stocks)

Today we’re going to dive into a corner of the market where 6%+ dividends are everywhere. What’s more, the funds behind these payouts have crushed the S&P 500 for decades—even during the financial crisis.

I’ll also introduce you to a specific fund that’s throwing off a 6.7% payout every month, and should be on any income investor’s radar. More on that shortly.

First, I’m talking about real estate—and in particular a group of closed-end funds (CEFs) that hold high-yielding real estate investment trusts (REITs), companies that own properties ranging from seniors’ homes to cell towers.

Yes, real estate—the sector at the heart of the subprime-mortgage crisis.… Read more

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3 Bombshell REITs Yielding 9.3% (with upside)

In a second, I’m going to reveal three real estate stocks that are much better than buying rental property of your own.

Why? Because this trio:

  1. Pays a 9.3% dividend, on average—with one yielding an incredible 11%. I think you’ll agree that this is a pretty tough return for most “real” landlords to get.
  2. Takes zero work—you just buy these property-focused stocks and collect your dividends (and price upside!), and …
  3. Gets you way more diversification than your typical basement apartment, semi-detached or “box in the sky” condo ever could.

You may have caught on that I’m talking about real estate investment trusts (REITs).… Read more

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3 “Tariff-Proof” CEFs You Can Buy Now (7% dividends and upside)

You’re no doubt wondering if there’s anywhere you can invest and still get a decent return—without wincing every time you open your brokerage account.

Good news: there is just such a place. And today I’m going to show it to you—along with three specific “crash-resistant” funds yielding up to 7.1%.

The magical place I’m talking about is an often-ignored corner of the market called closed-end funds (CEFs).

Steady Dividends for Rocky Markets

There’s a weird twist that lets CEFs pay us dividends of 7.1% (and a lot higher) without exposing us to the risk of a surprise payout cut.

It comes down to the fact that several CEFs’ prices (on the open market) trade at a discount to the per-share net asset value (or the liquidation value of their portfolios).… Read more

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2 Top Dividend Funds (8%+ Yields!) to Buy Now

Pity the poor landlord, stuck with a boatload of hassles: late rent payments, missed payments, tenants who disappear, tenants who trash the place before they leave.

The list of risks with owning rental property goes on and on! All just to (hopefully) collect a rent check at the end of the month.

But there’s a much easier way to rake in steady income from real estate without the hassle of dealing with tenants and other risks of owning property outright.

The best part?

You’ll get an 8% return on your money in cash every single year. And we’re going to do it straight from our brokerage accounts, just as if we’re buying shares of a company like Apple (AAPL)—but without the pathetic 1.4% dividend Tim Cook’s firm pays.…
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