7 Screaming CEF Buys With 9.3% Yields and 50% Upside

The Contrary Investing Report

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

7 Screaming CEF Buys With 9.3% Yields and 50% Upside

A few days ago, I showed you exactly why now is the time to be greedy—not fearful—when it comes to stocks.

And now, buried deep in the latest gross domestic product (GDP) report is a tiny data point that proves I’m right. It’s the clearest signal in years that now is the time to buy.

I’ll show you 7 funds perfectly positioned to take advantage while handing you safe dividend yields up to 9.3% in just a moment. First, let’s talk about that under-the-radar signal I mentioned.

The report’s headline number showed that fourth-quarter GDP rose 2.1%, slightly above economists’ expectations of 2% growth.

That’s great. But the real exciting news was in the data attached to the press release: corporate profits are up. Way up. …
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5 Big Dividends (up to 9.7%) That LOVE Higher Interest Rates

We hear it every single time the Federal Reserve raises rates, or even merely hints at it!

“Higher interest rates will crush dividend stocks – especially high yielders.”

Sounds scary – but it’s simply not true. And we’ll highlight five picks paying up to 9.2% that will prove just that.

Many high-yield dividend payers don’t care about the interest-rate boogeyman – and some actually outperform the market when the Fed lifts rates. Consider this research from index provider MSCI (MSCI) studying 88 years of market history up through July 2015 (emphasis mine):

“We found that, when rates were low to begin with, high-dividend stocks outperformed the market by an annualized 2.4 percentage points when rates started to go up.

On the other hand, when low rates fell under such conditions, the high-dividend stocks in our study actually lagged the market by an annualized 2. …
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Five 8-10% Yielders That Can Actually Grow Your Portfolio, Too!

Many investors think they need to choose between current income and price upside. They don’t.

In a moment, I’ll highlight five stocks paying between 8% and 10% with 40% upside to boot.

Let’s face it – growth matters. It’s the best way to retire on a nest egg of just $500,000:

How to Stretch Your Investment on $500,000

The table above assumes a nest egg of half a million dollars that yields 8% a year, and absolutely no dividend reinvestment – here, you’re putting every cent of income into your pocket. Look how much that $500,000 expands over just a few years as you’re able to achieve more capital gains out of it. Even if you’re conservative and want to assume just 4% in annual growth out of your portfolio, that’s an extra $240,000 after 10 years – a much better position to be in than if you settled for a no-growth portfolio by selecting subpar high yielders …
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My Top Buy for a 6.6% Yield and “Crash Insurance”

The past year has been good for the S&P 500: it’s up about 15.7%, including dividends.

So if you’re simply tracking the index through an exchange traded fund, congrats. That’s a decent gain.

But I’ve got one simple trick—and a far superior fund buy—that can help you do even better … and grab a big chunk of your gain in cash, too.

That trick? Covered calls.

Covered what?

Covered calls are a strategy in which investors buy stocks and sell call options against those stocks.

Think of call options as a kind of insurance; investors buy them if they are short the market and want to protect themselves from blowing up in case the market rallies. If you sell those options to investors, you’re essentially becoming an insurer, giving these gamblers the protection they crave to cover their risky bets. …
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Why – and How – Marc Faber’s Buying Gold Right Now

Marc Faber likes gold at these levels – the physical variety that is – and recommends storing it anywhere but the US (much to the shock of the potted plants in suits on CNBC). Interview highlights: On gold’s lackluster year: Money printing does not lift all assets at the same time with the same intensity […]

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NYSE Margin Debt Hits Record Levels, Surpassing 2007 Mark

Not only are investors all lathered up these days – they appear to be quite levered up, too.  Courtesy of the Jutia Group: It’s official… Margin debt—that’s the amount of money borrowed to purchase stocks—on the New York Stock Exchange (NYSE) reached its all-time high in April. Margin debt on the NYSE registered at $384.3 […]

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Putting Today’s Market Breakdown in Perspective

Just how meaningful was today’s late vomiting action from the market?  Technician Carl Swenlin pulls up the charts for each sector and puts it in perspective… Sector Check by Carl Swenlin The S&P 500 component stocks are divided into nine sectors. All the stocks are used, and each stock is only used once. Those sector […]

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A Big “Too Big to Fail” Undressing

The usually-zen Sy Harding is all fired up today – please read on for a “too big to fail” undressing! Too Big To Fail Banks Certainly Have Not By Sy Harding Fair warning – the following may make you sick. This week the Federal Reserve of St. Louis released a report estimating that Americans on […]

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Gold & Silver “Gambler Specials” Search For a Bottom

When gold and silver crashed, I dialed in my favorite leveraged proxies for close viewing – Royal Gold (RGLD) and Silver Wheaton (SLW). Both are great businesses – junior miners who don’t actually do any mining.  Rather they are royalty companies, who own the gold and silver in the ground respectively, and cut deals with […]

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Jim Rogers’ Buy Price on Gold

Jim Rogers was last week’s guest on Porter Stansberry’s usually excellent podcast Stansberry Radio.  I am throwing in the “usually” qualifier because this was, in my opinion, a poor interview by Porter (who is normally good)…I thought he spoke way too much and didn’t let Jim get enough in. Regardless, it’s worth a listen – […]

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