Jerome Powell Is Secretly Helping Us Earn Yields Up To 13%

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Jerome Powell Is Secretly Helping Us Earn Yields Up To 13%

It’s a party on Wall Street! While the suits fawn over the hot “Trump trade” stocks, we dividend investors are going to dumpster dive.

Hey, we have no shame. We’re talking about yields from 7.8% to 13.4%, paid monthly!

Why the bargains? Bonds have been bloodied since the Federal Reserve cut rates.

Wait, what? Let’s remember the Fed guides short-term rates. Long-term rates , on the other hand, march to the beat of their own drum:

20- and 30-Year Treasuries Above 4.5% Again

We could dip into bond exchange-traded funds (ETFs)—they’ll have the same tailwind at their back. But I prefer CEFs over bland ETFs for three very simple reasons:

  1. They yield more.

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These Big Dividends (Up to 11%) Are Primed to Soar in “Bond Rally 2”

At my CEF Insider service, we’ve been bullish on corporate bonds (especially corporate bond–focused closed-end funds yielding 8%+) for a long time now.

We remain so, because we’ve got a nice “goldilocks” setup for these funds right now:

  1. The US economy, while not booming at a rate that makes everyone happy, has steadily improved since the pandemic, prompting inflation to slow but remain elevated.
  2. The Federal Reserve, seeing this, is getting set to lower interest rates in late 2024, or possibly at some point next year.

These are both bullish signs for corporate bonds—and the closed-end funds that hold them. I’m sure I don’t have to tell you they were hit hard in 2022, resulting in an array of bargains.… Read more

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Contrarians: These Are the Last Cheap Income Buys Out There (Yielding 8.4%+)

This levitating stock market has brought back worries about a crash (and a recession). I know, I know. We’ve been hearing that doomsday forecast for what feels like forever—and nothing of the sort has come to pass.

But a recession will eventually show up. We just don’t know when. In the meantime, stocks could keep drifting higher.

We do not want to miss out on that. But we do want to pay special attention to assets beyond stocks now (and minimize the amount we have sitting in cash, by the way, which is getting eaten up by still-hot inflation).

This is where corporate bonds (many of which are oversold) enter the scene, particularly bond-focused closed-end funds (CEFs), many of which yield well over 8%.… Read more

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Treasuries Now Yield 3%-4%. These Bonds Offer 2x-3x That.

Bonds are finally an intriguing place for retirement income.

Safe Treasuries still pay a respectable (by their standards, at least) 3.7%. But we contrarians can do better.

Today we’re going to discuss three bond funds ready to rally. They pay 8.6%, 9.1% and—get this—9.6% per year.

Those are not typos. These are fat freaking yields.

Yes, These Bond Yields Are Real. And They Are Spectacular.

And even better still, you can buy these bonds for as low as 90 cents on the dollar! How is that? Well, the cheapest fund trades for just 90% of its net asset value (NAV).… Read more

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