This $14 Fund Pays an Amazing 8.4% Dividend

The Contrary Investing Report

Investing and Trading News, with a Contrarian, Sarcastic Twist!

This $14 Fund Pays an Amazing 8.4% Dividend

I’m about to show you three potent investing trends that are being drowned out by the media noise. Then we’ll uncover three snubbed funds set to ride these surging trends to big gains (hint: one of these buys pays an amazing 8.4% dividend!).

Let’s get started.

Trend No. 1: A Still-Roaring US Economy

Take a close look at the chart below. See how every quarter in 2018 has been ahead of every quarter since 2015 by a mile?

Here’s the funny thing: despite that, 2018 gave us the first bear market in stocks since 2008.

It makes zero sense … and it’s why I’ve been pounding the table on stocks since they started falling last year.… Read more

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Weekly Market Summary: U.S. Stocks Register Double-Digit Q1 Gains, Despite Inverted Yields

Investors shrugged off an inversion of the U.S. Treasury yield curve and domestic stock market averages ended the first quarter with 10%-plus gains across the board.

Trade talks resumed with China this week, as a U.S. delegation, including Treasury Secretary Steven Mnuchin, visited Beijing. The sides are expected to continue discussions next week in Washington D.C.

Inverse Reaction

There was a negative initial reaction to the 3-month U.S. Treasury yield falling below that of the benchmark 10-year note, but rates and investor sentiment leveled off throughout the week.

An inversion of the yield curve often (but not always) predicts an upcoming economic recession.… Read more

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The 7 Steps I Always Follow for 8% Dividends in CEFs

Today, the 10-year Treasury pays just 2.4%. Put a million bucks in T-Bills and you’re banking $24,000 per year. Barely above poverty levels!

Hence the appeal of closed-end funds (CEFs), which often pay 8% or better. That’s the difference between a paltry minimum-wage income of $24,000 on a million saved or a respectable $80,000 annually.

And if you’re smart about your CEF purchases, you can even buy these funds at discounts and snare some price upside to boot!

The market’s fast run-up since January 1 has made cheap CEFs just a bit harder to find. And some CEFs have become so pricey that, if you hold them, you should consider selling before their premiums fall to earth.… Read more

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Warning: This 21% Dividend Is Way Too Good to Be True

Every so often, a CEF Insider subscriber asks if I see oil-related closed-end funds (CEFs) as solid income plays. You might be wondering the same, given the surge in oil prices—and oil stocks—since the start of 2019.

Today we’re going to answer that question. Along the way, we’ll uncover an energy CEF you need to steer clear of, no matter how you feel about oil.

Let’s start by making a quick run through history: what would have happened if you invested in energy CEFs over the last few years?


Source: CEF Insider

While the last three years have seen a decent average annualized return, and a negative return if you got in five years ago.… Read more

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Warning: This 21% Dividend Is Way Too Good to Be True

Every so often, a CEF Insider subscriber asks if I see oil-related closed-end funds (CEFs) as solid income plays. You might be wondering the same, given the surge in oil prices—and oil stocks—since the start of 2019.

Today we’re going to answer that question. Along the way, we’ll uncover an energy CEF you need to steer clear of, no matter how you feel about oil.

Let’s start by making a quick run through history: what would have happened if you invested in energy CEFs over the last few years?


Source: CEF Insider

While the last three years have seen a decent average annualized return, and a negative return if you got in five years ago.… Read more

Read More

How to Collect a “Yield-Curve-Proof” $6,166.67 in Monthly Income

The yield curve is now “inverted.” This warning has preceded “seven of four” recent bear markets (more on this in a moment). Time to be safe and sell everything?

Before we stash cash in the mattress, let’s review the actual facts. Fundamental Capital’s Troy Bombardia, one of my favorite historical finance quants, has run the numbers on what happens to the S&P 500 when the 10-year “long” yield dives below the three-month rate:

  • In 1966, 1973, 2000 and 2006, an inverted yield curve indeed preceded a big stock market pullback (usually by a year or two).
  • Meanwhile in 1978, 1980 and 1989 it didn’t mean much.

… Read more

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My Top “Fed-Proof” Buy: 7.7% Dividends, Fast 10% Gains

Don’t become complacent with your dividends! Your portfolio and your income are at the whim of Fed Chair Jerome Powell—now more than ever.

I realize he’s acting like a “good boy” at the moment. But what if JP decides to go rogue again and exercise his independence? A surprise rate hike would be catastrophic to many income portfolios.

That means you need to “Fed-proof” your nest egg and your dividends. Today we’ll discuss four funds paying dividends up to 10.7% that do just that.

These four closed-end funds (CEFs) have been left for dead in this market rally. That makes them great “Fed insurance”: they’re cheap, so they’ve got built-in upside if the rally goes into overtime.… Read more

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My Top “Fed-Proof” Buy: 7.7% Dividends, Fast 10% Gains

Don’t become complacent with your dividends! Your portfolio and your income are at the whim of Fed Chair Jerome Powell—now more than ever.

I realize he’s acting like a “good boy” at the moment. But what if JP decides to go rogue again and exercise his independence? A surprise rate hike would be catastrophic to many income portfolios.

That means you need to “Fed-proof” your nest egg and your dividends. Today we’ll discuss four funds paying dividends up to 10.7% that do just that.

These four closed-end funds (CEFs) have been left for dead in this market rally. That makes them great “Fed insurance”: they’re cheap, so they’ve got built-in upside if the rally goes into overtime.… Read more

Read More

My Top “Fed-Proof” Buy: 7.7% Dividends, Fast 10% Gains

Don’t become complacent with your dividends! Your portfolio and your income are at the whim of Fed Chair Jerome Powell—now more than ever.

I realize he’s acting like a “good boy” at the moment. But what if JP decides to go rogue again and exercise his independence? A surprise rate hike would be catastrophic to many income portfolios.

That means you need to “Fed-proof” your nest egg and your dividends. Today we’ll discuss four funds paying dividends up to 10.7% that do just that.

These four closed-end funds (CEFs) have been left for dead in this market rally. That makes them great “Fed insurance”: they’re cheap, so they’ve got built-in upside if the rally goes into overtime.… Read more

Read More

This 2.7% Dividend Is a Dumpster Fire (but This 7.9% Payout is On Fire)

If you want to diversify, get a strong—and growing—dividend and dodge risky speculation, the SPDR S&P Dividend ETF (SDY) may seem like a no-brainer.

But buying this fund would be a huge mistake!

Today I’m going to show you why, and help you avoid a couple other seemingly obvious moves that could steer you into big trouble. Further on, I’ll reveal a terrific fund paying an outsized monthly dividend (yielding 7.9%) to buy now and tuck away for two decades or more.

First, back to SDY, which has beaten the S&P 500 over the past decade:

SDY Throws Us the Bait …

At the same time, the fund has shown solid dividend growth, as well as some massive special dividends that have helped its payouts grow substantially over the years:

… and Sets the Hook

So why not just buy this fund and call it a day?… Read more

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