4 “Double Discounted” CEFs Yielding Up to 9.1% (Paid Monthly)

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There’s nothing we closed-end fund investors love more than finding a smartly run fund in an unfairly beaten-down sector. This hands us a nice discount (of course!), plus a much bigger dividend, because yields and prices move in opposite directions.

In fact, with CEFs, we’re actually getting a “double discount”: one from the depressed sector and one from the CEF’s discount to net asset value (NAV, or the value of the stocks in its portfolio). This indicator only exists with CEFs, and we’ll cover 4 with particularly attractive discounts to NAV in a second.

Plus, CEFs already boast yields that triple (or more) those of regular stocks, so deep-discounted CEFs give you an income stream that’s bigger still.Read more

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Most investors are ignoring a clear shot at 7%+ dividends double-digit price gains—year in and year out—in a sector everyone should be talking about, but isn’t.

That would be healthcare, which is riding a rocket of rising spending: according to the latest numbers from the Centers for Medicare & Medicaid Services, US health expenditures will soar 5.4% annually, on average, every year until 2028. (We’ll dive into three funds paying huge dividends up to 8.3% and poised to cash in on this wave in a moment.)

The thing about that 5.4% yearly increase is that it’s much bigger than projected US GDP growth of 4%.… Read more

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Let’s jump on the market’s September slide and grab ourselves a sweet “double discount” on 358 totally ignored income plays—and some sweet 6%+ dividends, too. And our new income stream will pay us monthly!

Going Where Other Dividend Investors Don’t

Our route to this big monthly payout does an end run around the misers of the S&P 500. Even though the market dove 3.5% in September, that was only enough to drive yields on the big-name stocks up by—wait for it—0.07%.

In other words, if you dropped a million bucks into an ETF like the SPDR S&P 500 ETF Trust (SPY) in early September, you’d be generating $12,300 in yearly dividends.… Read more

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When it comes right down to it, we dividend investors really only need three things:

  • Bargain stocks with …
  • High current yields and ideally …
  • Monthly payouts—so we can line up our income with our bills and reinvest our dividend cash without having to wait for three long months.

I know—this list is cute, but it sounds wildly out of step with the times.

After all, the COVID rally has sliced the typical S&P 500 stock’s yield to an unlivable 1.4%. And bargain valuations? Ha! Stocks trade at a helium-powered 37-times their last 12 months of earnings right now.

And we all know that to get monthly payouts, we must look beyond the popular stocks to lesser-known plays like real estate investment trusts (REITs) and closed-end funds (CEFs).… Read more

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Let me start with a special shout out to our dedicated readers at Barron’s. Here at Contrarian Outlook, we’ve been drawing up the playbook to retire on dividends for years (Two years ago, we literally wrote the book on the retirement strategy.)

So it was a hoot to see Barron’s run a cover story about retiring on dividends. But I have a bit of constructive criticism about the piece: the dividend stocks highlighted in the feature article had yields too low to actually retire on.

The magazine’s 10 buys included Coca-Cola (KO), International Business Machines (IBM) and Johnson & Johnson (JNJ) and had an average current yield of 4.1% between them (as of the time the piece was written).… Read more

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Let me start with a special shout out to our dedicated readers at Barron’s. Here at Contrarian Outlook, we’ve been drawing up the playbook to retire on dividends for years (Two years ago, we literally wrote the book on the retirement strategy.)

So it was a hoot to see Barron’s run a cover story about retiring on dividends. But I have a bit of constructive criticism about the piece: the dividend stocks highlighted in the feature article had yields too low to actually retire on.

The magazine’s 10 buys included Coca-Cola (KO), International Business Machines (IBM) and Johnson & Johnson (JNJ) and had an average current yield of 4.1% between them (as of the time the piece was written).… Read more

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Most people don’t realize it, but there are 500 funds out there paying massive dividends: I’m talking rich 7% payouts on average.

That’s five times more than index funds pay! And many of these 500 criminally overlooked funds clobber their benchmarks, too.

I’m talking about closed-end funds (CEFs), which are run by real human beings, not algorithms. And despite what most advisors will tell you, the stock-pickers running CEFs beat the market on the regular.

To see what I mean, consider two CEFs: the  Duff & Phelps Utility & Infrastructure Fund (DPG), which holds utility stocks  like NextEra Energy (NEE) and Dominion Energy (D), and the Tekla Healthcare Opportunities Fund (THQ), holder of major drug firms like Johnson & Johnson (JNJ) and Abbott Laboratories (ABT).Read more

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There’s a way for us dividend investors to tap the news of a COVID-19 vaccine for huge payouts of 10% and up. And we’ll position our portfolios for serious price upside, too.

I know the vaccine news has a bit of a “horse is out of the barn” feel to it. After all, the market and shares of the vaccine’s producer, Pfizer (PFE), have already popped (though the rally has taken a bit of a breather lately). But you’re not too late. With the three investments I’ll show you below, you could grab healthcare dividends much bigger than the 3.9% Pfizer pays now.… Read more

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Finally—a selloff! It’s the perfect time for us to add secure monthly dividend stocks to our portfolio now that their valuations have landed back here on Planet Earth. I’m talking about every-30-day payers with dividends that annualize up to 7.1%.

Their price decline has increased their dividend yields, giving us a shot at a terrific combo: higher yields, monthly payouts and price upside. Yes, you read that right. We don’t have to “settle” for 7.1% yields that are paid to us monthly. By buying right, we can capture some price gains, to boot.

Monthly Dividend Stocks Make Sense for Retirees—and Aspiring Retirees

If you’re relying on your portfolio for income, monthly dividends are a godsend, because managing your cash flow from stocks paying quarterly is a total headache.… Read more

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“It’s my money, and I want it now!”

That’s the rallying cry of everyday folks in commercials for J.G. Wentworth, a financial services firm that offers lump-sum cash payments for structured settlements, annuities, lottery payments and more. (If you’ve never seen one of these TV spots, I suggest you try one out. They’re so bad they’re good.)

Every income investor could (and probably should) take a cue from its motto. To quote another spot: “Show us the money!”

Monthly dividend stocks, of course, pay more often than any other income investment. Dividend checks coming in every 30 days are especially handy for retirees who have bills to pay.… Read more

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