This Lets You “Skim” 9% of US Corporate Profits (and Turn Them Into Cash)

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This Lets You “Skim” 9% of US Corporate Profits (and Turn Them Into Cash)

Look, we all know US companies are raking in big profits—despite worries about a slowing economy.

The thing is, when it comes to sharing those huge profits with us as dividends, these firms are remarkably stingy: The typical S&P 500 stock yields just over 1% today! So we’re going to change that (at least for ourselves) by tapping into these firms’ earnings through high-yield closed-end funds (CEFs).

The two CEFs I’m about to show you yield 9.7% on average between them. So every $10,000 invested turns into $81 per month in income. A million dollars invested in these two funds gets you a whopping $97,000 annual income stream.… Read more

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The Big “Risk” Wall Street Got Wrong (We’re Cashing in With 8.6% Dividends)

Maybe you’ve heard some variation on this fear in the last few years:

A lot of American companies are going to default on their debts.

I know I have. Frankly, pushing back on it was among the most contrarian calls I’ve made during my investment career. And it was tough to stick with. I’ve been in plenty of conversations with bankers, hedge fund managers and other Wall Street types who thought a default wave was right around the corner.

But it wasn’t. And it isn’t now—even though the fear remains. And we’re going to tap this ongoing misconception for a cheap (but getting less cheap every day) 8.6% dividend in just a second.… Read more

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3 Bond CEFs: Defense That Pays up to 10.2%

Although some tariff hikes have been paused, a recession is still very much in play.

Just a few days ago, I wrote that “this is the time to recession-proof our retirement holdings.” And why not? GDP estimates have tanked. So has consumer sentiment.

Goldman Sachs made headlines for raising its probability of recession (from 20% to 35%). Fine, but equity analysts often get caught up in crowds.

What was more striking was hearing a similar message from the debt watchers. Consider this post from Mark Zandi, Moody’s Analytics’ chief economist:

In my previous post, I showed readers how to recession-proof their portfolio with municipal debt.… Read 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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3 Funds (Yielding Up to 12.5%) Set to Soar as the Economy Downshifts

At my CEF Insider service, we started 2024 expecting stocks to rise about 10% to 15% this year. Well, we’re well within that range now: the S&P 500 is up just under 14% in 2024, as of this writing.

And it’s only June! Which means that while stocks can keep going higher, we’ll likely see more dips as the market catches its breath.

We’ll use those dips to pick up our favorite 8%+ yielding closed-end funds (CEFs), of course. But we don’t have to wait around for our next dip-buying opportunity—I’ve got three bargain-priced bond funds for you to consider now, yielding up to 12.5%.… Read more

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5 Tips for Big Gains (and 7%+ dividends) From CEFs in 2019

Since launching my CEF Insider service in early 2018, the picks I’ve given subscribers have outperformed the broader CEF market. That’s prompted a lot of people to ask me how I choose the CEFs I do—especially in a market as wild as the one we’ve seen in the last couple months.

My process is both complicated and straightforward. I have a checklist of 52 points I go through to choose the right fund. I apply these one by one, first using some of the broader points to screen funds, then zooming in closer, using more complex analysis to bring you my very best buys.… Read more

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