Midyear Update: Our Playbook for Big Dividends (for 15% Off)

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Midyear Update: Our Playbook for Big Dividends (for 15% Off)

We’re halfway through 2023, and many closed-end funds (CEFs) have ridden this year’s market updraft while delivering huge dividends to members of my CEF Insider service.

Yet we contrarian income seekers are still in a strong position, as traditionally slow-moving CEF buyers tiptoe back into the market, giving us extra time to pick up our favorite CEFs at deep discounts to net asset value (NAV).

In the June issue of CEF Insider, which will be released tomorrow, we’re going to discuss specific portfolio picks that are best positioned to profit from the trends I see unfolding over the rest of the year.… Read more

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3 Dividend Stocks to Play the Taper (for Fast 61%+ Gains)

Goldman Sachs says the Fed will start cutting its bond purchases next month—and that sets up some of our favorite dividend-payers for a quick 61% profit surge. (I’ll reveal the tickers we need to reap this “taper bonanza” in a moment.)

Wait. Why are we taking Goldman’s word here?

Because “Government Sachs” has the deepest DC connections of any bank: former Treasury Secretaries Henry Paulson and Steven Mnuchin are Goldman grads, among many other government bigwigs. When it comes to what’s happening at the Fed, I’d take Goldman’s opinion over that of Jay Powell himself!

A Boon for Dividend Investors

To get at how we’ll flip the taper into big dividends, let’s connect it to a figure we all watch closely: the yield on the 10-year Treasury note.… Read more

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The Dividends Most Likely to Double by December

Collecting dividends is fun. Doubling our money is even better.

From time to time, Mr. and Ms. Market will present us with a deal that includes payouts plus price upside. I’m talking about 50% to 100% returns from secure dividend payers.

These “dividend doubles” require a catalyst. Some event that, if it unfolds, would launch profits—and the firm’s stock price!

Higher interest rates are a compelling “catalyst bet” today. The 10-year Treasury yield tripled between August and April. We noted a few months back that the rate move was due for a breather, and that’s exactly what has unfolded with the benchmark rate briefly edging below 1.3% last week:

Time to “Buy the Dip” in Interest Rates?… Read more

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These Stimulus-Powered Investments Could Soar 53%+

There’s $2 trillion in cash headed straight into the US economy, and today we’re going to grab a share, both in the form of price gains and dividends.

I’m talking about the latest stimulus plan that’s made its way through the House of Representatives.

While plenty of folks fret over the rise in public debt this $1.9-trillion plan brings—and that’s a real concern—it’s a problem for another day. The cash is needed to get the economy through to the other side of the current crisis.

And pretty well all of this package is set to get spent through direct payouts to people and organizations that will spend it, with the headline item being $1,400 in stimulus checks (or about $1.1 trillion in all) going to taxpayers.… Read more

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2 “Preferred” Dividends Paying 4X More Than Stocks (with big upside ahead)

With stocks breaking to all-time highs, we should emphasize security of the dividends we’re purchasing first and foremost. In previous months, it was a good time to be greedy. Now, with other investors in a fervor, let’s be careful.

The main thing we don’t want to do in a pricey market like this? Join the millions of “buy and hopers” out there. I call them that because they “buy” the typical S&P 500 stock and then “hope” for gains.

They’re sure not buying for the dividends: the popular names pay a poverty-level 1.6% income stream, on average.

With a lame yield like that, hoping for a jump in the share price is the only play you’ve got!… Read more

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Revealed: A Massive 7.4% Dividend From … Bank Stocks!?

If you’ve held off on bank stocks for the last few months, I have good and bad news for you.

The good? You’ve still got time to get in before the banks take off on their next surge.

The bad? After the big profits this hated sector has posted in the last couple weeks, your window is closing fast!

So today we’re going to look at why 5 of the 6 biggest US banks look strong now … but being the dividend hounds we are, we’re not going to buy “regular” bank stocks, with their pathetic sub-2% dividend yields.

No way.…
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How to Buy the Best REITs at an 18% Discount

Today, I’m going to show you some of my favorite REITs—and a novel way of buying them that lets you do so for 18% off!

But first, there’s one sector you need to avoid: financials.

In fact, you needed to avoid it two months ago, as I warned back on February 28.

What’s happened since then? Nothing good.

Financials Come Up Short

This underperformance you see in the above chart isn’t surprising, considering financials were up over 30% by the end of February—and you can see from this chart that they reached their top just when I called it:

Snapshot of a Correction

What’s going on here? …
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The Surprising Truth About Vanguard

I want to let you in on a shocking secret about Vanguard: they’re great active investors.

That’s right. The people almost everyone looks to for low-fee index funds are, in fact, top-flight stock pickers.

Take the actively managed Vanguard Windsor Fund Investor Shares (VWNDX): since inception way back in 1958, it’s returned an annualized 11.4%, despite being long only large cap value stocks (and avoiding more volatile small caps entirely).

Compare that to the passive Vanguard Total Stock Market Fund (VTSAX). Despite the index fund’s lower fees (which first-level investors love and Vanguard touts as a key to superior returns), VWNDX has crushed VTSAX since the latter’s launch in the early 2000s:

Index Investors Get What They Pay For
…
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