2 Popular CEFs: One Dangerous Gamble, One 9.9%-Paying Winner

The Contrary Investing Report

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

2 Popular CEFs: One Dangerous Gamble, One 9.9%-Paying Winner

It never ceases to amaze me how many investors confuse investing with straight-up gambling.

Of course, we income investors know that gambling is a one-way ticket to losses (the house always wins, after all!). That’s why we always focus on long-term wealth creation (and a solid income stream) at my CEF Insider service, whose portfolio yields nearly 10% on average as I write this.

Nonetheless, with stocks having soared the way they have, it’s easier, even for normally prudent investors, to get caught up in dangerous speculation. That’s especially true when gambling seems to be everywhere these days.

Even though—a funny aside—gambling actually hasn’t grown as a percentage of Americans’ earnings in the last 25 years.… Read more

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4 Dividends up to 20% Wall Street Can’t Stand

We contrarians follow Wall Street analysts because we like to fade their opinions!

When most say Buy, we are cautious. There is nobody left to upgrade these shares.

When they slap a Sell label, we are intrigued. So you’re saying the next rating change will be an upgrade?

These slippery suits rate most stocks Buys because, well, that’s the business. As we speak, 400 of the S&P 500 (!) is rated a Buy!

Even at All-Time Highs, Analysts Say 80% of the Market Is a Buy!

Source: S&P Global Market Intelligence

So let’s sift through the Holds and the Sells. Today we’ll sort through a four-pack yielding between 7.9% and 20.6%.… Read more

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The Housing “Crisis,” the AI “Bubble” and the Real Market Signal No One Talks About

I’ve seen a lot more news stories trying to do something that seems a bit weird these days: stoke anger between generations.

I bring this up because it’s an example of why, when it comes to picking stocks (and 8%+ paying closed-end funds), we simply can’t trust the media anymore.

Why? Because many outlets are so focused on generating emotional responses (and the clicks that go with them) that they’ve gotten far away from what really matters: the real data behind what they’re saying.

With that in mind, we’re going to look at a data-driven indicator that tells us whether or not it’s a good time to buy.… Read more

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Wall Street Panics, Powell Cooks, Chef’s Kiss for THIS 12.9% Dividend

Jerome Powell is preparing a wonderful holiday income dish for us.

The economy is running hot and he’s cutting rates anyway. Oh baby! “Lame Duck Jerry” is finally starting to cook.

But vanilla investors aren’t having it. They’re sprinting from the table! Recession fears dominate the headlines, even though the data scream otherwise.

The Atlanta Fed’s thermometer has GDP at a sizzling 4%. Four percent! In today’s AI-fueled, efficiency-obsessed economy, the old recession playbook simply doesn’t apply.

AI is eating traditional white-collar work. Business models from 2019 no longer apply in 2025. Some sectors are struggling while others hit new strides.… Read more

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This “Bubble Fear” Is the Best Setup We’ve Had in Years. These 6%+ Divvies Are the Play

What a time to be a contrarian!

The economy is en fuego as AI boosts productivity (even if, yes, it’s cooling payrolls). Yet the mainstream crowd is hunkered down, terrified of an AI bubble.

That sets up some very attractive deals in 8%-paying closed-end funds (CEFs), many of which have gone on sale in the last few weeks.

2 “North Stars” Show Us What to Do Now

To get a feel for the setup in front of us, all we need to do is look at two things.

First, the Atlanta Fed’s GDPNow indicator, the most current economic “barometer” we have.… Read more

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If You Missed This 8% Dividend 5 Years Ago, It’s Cheap AGAIN

It’s been a long time since we talked about pandemic bargains, but believe it or not, there’s still a big one out there.

I do think it’s finally on borrowed time, though, which is why it’s on our radar now.

I’m talking about publicly traded real estate investment trusts (REITs). What we’re looking at with REITs is a classic “buy the dip” play with a (very!) long buy window indeed. Here’s a snapshot:

REITs Trail Stocks Post-Pandemic …

Over the five years since the depths of the pandemic, the S&P 500 (shown by the popular index fund in purple above) has posted a 106.5% total return, as of this writing.… Read more

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The Market’s a Ripoff Right Now, But These 4 High Yielders Aren’t

Will the stock market finish the year higher or lower?

Who cares?!

Paying attention to “the market” is a hopeless effort in 2025. The explosion of AI implementation plus the policies from Trump 2.0 are creating winners and losers in the economy.

So why buy a basket when we can cherry pick the undervalued front runners?

Even better? Some are cheap! As I write, four big dividend payers (dishing divvies between 5% and 6%) are trading at bargain-basement valuations. Let’s start with the most established of the four-pack, trading for less than its annual sales…

Sonoco Products (SON)
Dividend Yield: 5.2%

Sonoco Products (SON) is a packaging dinosaur turned value play.… Read more

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The Market’s a Ripoff Right Now, But These 4 High Yielders Aren’t

Will the stock market finish the year higher or lower?

Who cares?!

Paying attention to “the market” is a hopeless effort in 2025. The explosion of AI implementation plus the policies from Trump 2.0 are creating winners and losers in the economy.

So why buy a basket when we can cherry pick the undervalued front runners?

Even better? Some are cheap! As I write, four big dividend payers (dishing divvies between 5% and 6%) are trading at bargain-basement valuations. Let’s start with the most established of the four-pack, trading for less than its annual sales…

Sonoco Products (SON)
Dividend Yield: 5.2%

Sonoco Products (SON) is a packaging dinosaur turned value play.… Read more

Read More

The Market’s a Ripoff Right Now, But These 4 High Yielders Aren’t

Will the stock market finish the year higher or lower?

Who cares?!

Paying attention to “the market” is a hopeless effort in 2025. The explosion of AI implementation plus the policies from Trump 2.0 are creating winners and losers in the economy.

So why buy a basket when we can cherry pick the undervalued front runners?

Even better? Some are cheap! As I write, four big dividend payers (dishing divvies between 5% and 6%) are trading at bargain-basement valuations. Let’s start with the most established of the four-pack, trading for less than its annual sales…

Sonoco Products (SON)
Dividend Yield: 5.2%

Sonoco Products (SON) is a packaging dinosaur turned value play.… Read more

Read More

Why Your Friends Are Losing $2,300 on Every $10K They Invest in Stocks

Selling on fear is a habit that’s so easy to fall into (especially now!). But giving in to it could cost you a lot: as much as $2,300 on every $10K invested.

And if you’re investing for income (as we are!), you face a double hit.

Not only do investors almost always get the timing wrong, but they cut off their income stream, too! When you’re holding our favorite income plays, closed-end funds (CEFs) yielding 8%+, it’s especially damaging.

I mention this now because I was reading a recent report from Morningstar that put the potential damage from this mistake into dollars and cents.… Read more

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