This “Low-Drama” Portfolio Is Built for This Crash (and Yields 11.8%)

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This “Low-Drama” Portfolio Is Built for This Crash (and Yields 11.8%)

Look, I know this inflation-panicked market is frustrating. But despite the endless doomsaying from the pundits, there is good news: if you’re investing for income and have a long time horizon, there are some big dividends (I’m talking 10%+ yields) waiting for us in closed-end funds (CEFs).

In a second, we’re going to dive into three such funds I’ve assembled into a low-drama “mini-portfolio” yielding north of 10%.

We can thank the selloff for this opportunity: when stock (and CEF) prices go down, yields go up. And our CEFs discounts to net asset value (NAV, or the per-share value of a CEF’s portfolio) fall to bargain levels.… Read more

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Forget the Crypto Casino: Do This for Double-Digit Dividends (Paid Monthly)

Here at Contrarian Outlook, we’ve been talking a lot about crypto lately—but not in the way you might think.

We’re not buyers—far from it! Instead, we’re using a savvy, dividend-focused strategy to set ourselves up for some nice gains (and dividend payouts!) as gamblers flee crypto and speculative tech stocks. (I’ll spotlight two closed-end funds that are aligned to scoop up our “crypto refugees” while handing us dividends yielding up to 11% in just a moment.)

I’m reminded of crypto right now because many of these “coins” have fallen hard recently—and last week, we got word of one that went essentially to zero!… Read more

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Here’s How Much You Need to Retire (Hint: It’s Less Than You Think)

Most investors I speak to have no idea how much they’ll need to retire (and with the uncertainty we’re facing today, that’s totally understandable!).

So let’s talk about that—and focus on closed-end funds (CEF), totally overlooked investments that could let you retire on dividends alone, possibly on as little as $325K. That’s the ultimate way to get peace of mind these days, because you don’t have to worry about selling into a pullback to keep your income stream intact.

The Income Side

When calculating how much you’ll need to clock out of the workforce, you really only need to know three things:

  1. How much you’ll spend in your first year of retirement.

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3 CEFs That Could Pay You $5,000 a Month

A contrarian indicator just flashed, and it’s telling us that now is the time to buy one of my favorite high-yield investments: closed-end funds (CEFs). Today we’re going to look at three yielding an outsized 11.6%.

Yield hunters that we are, we know the power of such a payout: with a $520,000 investment, we can kickstart a $60,000-a-year income stream. That’s a cool $5,000 averaged out on a monthly basis. And the three funds we’re going to cover in a moment give us the safety of diversification, going well beyond stocks to give us access to bonds, gold (a decent inflation hedge on its own) and real estate (ditto!).… Read more

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A “Contrarians Only” Strategy for 11% Dividends, 150% Payout Growth

Ignore the overtorqued headlines about inflation: even though prices are rising, they won’t take out the economy.

In fact, rising inflation is setting us up with a contrarian opportunity to grab double-digit dividends in a corner of the market everyone’s written off. That would be consumer-discretionary stocks, which you’d think would be the main victims of inflation, but that’s far from the case, for reasons we’ll get into shortly.

We’ll also delve into one smartly run consumer-focused closed-end fund (CEF) yielding an outsized 11% below. But first we have to talk strategy, because while there are opportunities for us, this twitchy market also includes some traps we need to watch for.… Read more

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My Top CEF Investing Strategy Delivers 11% Payouts, 83% Gains

I’m about to reveal my very best strategy for pocketing 20%+ upside (and 7.8%+ dividends) from high-yielding closed-end funds (CEFs).

It’s a “rinse and repeat” move that can help you grab the biggest gains from these potent income investments, lock in those wins, then sidestep the pullbacks. (I’ll also show you two ridiculously cheap CEFs throwing off massive yields up to 11.4%.)

It’s the perfect time to put this strategy in play because the Ukraine mess, and the broader market dumpster fire, have set us up with some sweet deals in CEFs.

The One (and Only) Predictor of CEF Upside

Besides massive dividends, CEFs stand out because it’s easy to tell if they’re truly oversold and ready to gap higher.… Read more

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This Will Be the Most Profitable Trend of 2022 (and We’ll Ride it to 7%+ Dividends)

Here’s my best advice as 2022 dawns: ignore the media’s constant bleating about inflation and supply-chain issues—these two boogeymen are nowhere near the threats everyone thinks they are!

In fact, terror-ridden headlines about either mark an opportunity for us contrarian income-seekers. So let’s go ahead and tap these investor fears for dividends yielding up to 10%, plus market-crushing returns as the crowd (inevitably!) comes around to our view.

Hints of a Supply-Chain Revival

More data will come in over the next few weeks to make things clearer, but so far there is one strong hint that the business press’s doomsday scenario—surging inflation, a stock-market correction and tighter corporate profits—just isn’t on.… Read more

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2 “Trash to Treasure” Dividends Yielding 7%+ (and 1 Laggard to Sell Now)

’Tis the season for us contrarian income investors to “bottom fish” the bargain bin for dividend deals. Let’s grab these discounted generous payouts while we can—these are the best weeks of the year to secure 7%+ payouts in 2022 and beyond.

For the next week or two, unloved 7%+ paying closed-end funds (CEFs) will be sold in the spirit of “tax loss” season. Wealthy investors and money managers are looking for 2021 losers to book against recent gains.

And thanks to the epic sector rotation we’re seeing now, the dogs of ’21 are likely to become the darlings of ’22. Fortunately we can buy them cheap—and we can identify these values using a “one-click” CEF valuation tool.… Read more

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A 3-Fund Mini-Portfolio “Built for 2022” Yielding 6.7% (With Upside)

Investors sometimes tell me that closed-end funds (CEFs) are complicated—riddled with jargon-y terms like discounts to NAV and net investment income (NII).

The truth is, while it may take a little bit of time to learn the ropes, the effort pays off in spades, since CEFs can get you about $3,000 per month in dividend income on a $500K investment! That could mean retiring a decade or more before folks who rely on low-yielding S&P 500 stocks or ETFs.

(And of course, if you’re a member of my CEF Insider service, I do the legwork for you, letting you collect our portfolio’s 7.3% average yield, with upside, without having to spend hours in front of a computer screen.)… Read more

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This 9.8% Dividend Could Bankroll Your Whole Retirement

There’s an unusual shift unfolding in the labor market that we contrarians can tap for outsized dividends (I’m talking a near-10% yield here), plus price upside for years to come.

We’ll do it using a closed-end fund (CEF) that’s tethered itself to a trend everyone has missed—a trend that’s concealed behind a metric called the labor force participation rate, or LFPR.

It may have a boring name, but that doesn’t stop the media from reporting on the LFPR. You’ve likely heard it pop up in the mainstream press from time to time.

It simply refers to the percentage of the population that’s actively working or looking for work.… Read more

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