Think Your Income Fund’s Dividend Is Dicey? Here’s How to Tell (Instantly)

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If you watch cable TV or visit financial websites, you no doubt hear about “overpriced” stocks and funds all the time.

A pundit will jump on TV and say something like “Tech is overvalued.” So, by extension, a tech ETF like the Technology Select Sector SPDR Fund (XLK) is overpriced, right?

Not so—at least in a technical sense. An ETF like XLK can be overpriced, but ETFs rarely are.

A fund like XLK collects money from investors and socks it away in stocks. In XLK’s case, we’re talking about big-name techs like Microsoft (MSFT), NVIDIA (NVDA) and Apple (AAPL). But with ETFs, the price you pay tends to be close to how much it would cost to buy all of those stocks separately.… Read more

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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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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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After watching the S&P 500 crash, then levitate, over the past seven months, I’ve come to one conclusion: high-yield closed-end funds (CEFs) are disrespected now—and that makes them a great contrarian buy.

Sure, some CEFs are cheap for a reason (I’m looking at you, energy funds). But there are plenty of undervalued winners, too. And plenty of CEFs have crushed the market this year, including 10 that have returned more than 8%. This top-10 list, which I’ll show you below, includes CEFs that have doubled, tripled—and even quadrupled the S&P 500’s 4% return.

What’s more, these funds all have one thing in common that sets them up for even bigger gains: strong management, proving once again that who manages your money is just as important as what you invest in—especially if you’re looking to boost your portfolio’s income stream with the 7% (or higher) dividends the typical CEF throws off.… Read more

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If you’re like pretty well everyone else, you’re closely watching Gilead Sciences (GILD), creator of remdesivir, a drug that, last week, showed progress in treating the coronavirus in a US government study.

But does that make Gilead a good stock to buy now, particularly if you’re focused on income? Let’s take a look.

First up, unlike many other stocks these days, Gilead boasts a safe payout, with the dividend accounting for just 38% of free cash flow in the last 12 months. And the company has increased its dividend every year since initiating it in 2015:

A Reliable Dividend

It’s on the current-yield front where the dividend story starts to fray.… Read more

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If you’re like pretty well everyone else, you’re closely watching Gilead Sciences (GILD), creator of remdesivir, a drug that, last week, showed progress in treating the coronavirus in a US government study.

But does that make Gilead a good stock to buy now, particularly if you’re focused on income? Let’s take a look.

First up, unlike many other stocks these days, Gilead boasts a safe payout, with the dividend accounting for just 38% of free cash flow in the last 12 months. And the company has increased its dividend every year since initiating it in 2015:

A Reliable Dividend

It’s on the current-yield front where the dividend story starts to fray.… Read more

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What’s better than a portfolio that will pay you a $117,000 salary every year in retirement?

How about one that delivers a consistent paycheck each and every month that you can plan all of your regular expenses around?

I’ll show you how, via with three already-diversified high-yield monthly dividend stocks. But first, let me show you how most income investors get it wrong.

Mistake 1: Cheating Themselves on Yield

Sure, yield isn’t everything—you want growth potential, dividend growth potential and safety, too—but it matters. Consider this: Every 1% in yield equates to $10,000 on a $1 million nest egg. Thus, 2% is $20,000, 3% is $30,000, and so forth.… Read more

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Today I want to show you a beaten-down sector that has a long history of crushing the market—and 4 funds that should be on your radar now.

These 4 funds are a great place to pocket dividends up to 10.9% (or $10,900 a year on a $100k investment) while you wait for the market to realize that it’s discounting their industry far too much.

I’m talking about 4 standout fund buys from the biotech sector.

Biotech has fallen over 10% from its 2018 high and is now down a bit more than the broader market. Just look at the iShares Nasdaq Biotechnology ETF (IBB) vs.…
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