Our favorite 9.5% dividends are on sale, and very few investors realize it.

It’s a striking situation because a payout that size handily beats a 10-year Treasury. Sure, the 10-year pays about 5% now. And it’ll pay you that for a decade, until you get your principal back.

But that’s still only a bit more than half of what these 9.5% payers—called closed-end funds (CEFs)—pay on average. Plus, unlike a Treasury, we can buy these funds’ portfolios for less than they’re actually worth, putting the potential for big upside on the table, too.

In fact, because so many investors are currently dazzled by those Treasury yields, we have a unique chance to buy our favorite CEFs at an unusually deep 7.8% average discount (more on that in a moment).… Read more

Every now and then, I’ll field a reader letter asking me what’s more important: dividends or growth?

My answer?

Stock pundits have dogged first-level investors with this false dilemma for decades. They love to sort the world into neat piles for their hot takes, and they’ve decided that companies can either pay us or their R&D teams, but not both.

I could drive a truck through the hole in that logic—and I will.

Then, I’m going to highlight seven dividend stocks that I expect to announce hikes to their cash distributions over the next few months. That includes five companies paying us high yields of up to 11%, as well as a pair of companies that doubled their dividends last year.… Read more

Let’s go ahead and break down a recent “win” at my CEF Insider service: an unloved fund that handed us a 48% total return in 10 months!

Why? Because this call went our way for plenty of reasons—and we can take those reasons and “convert” them to strategies that can give us the kind of portfolio we all want: one that delivers healthy dividend income and strong price upside. 

The fund in question: the Columbia Seligman Premium Technology Growth Fund (STK), which returned that 48% from our buy call in the November 2025 CEF Insider to our sell in the recently released September issue.… Read more

I’m hearing a lot from subscribers who are worried about rising rates. I get it. If you’re watching the financial news, it’s all they are talking about. And if you watch your portfolio (too?) closely, you see that the prices of your bond funds are declining.

Which, like, defeats the point of bonds. We’re here for the yield and not to give back our dividends via capital losses.

Bond prices fall as rates rise because, even if the bonds a fund owns are perfectly fine (paying their coupons on schedule), the value declines. Who wants to buy an old bond paying 3% if newer bonds pay more?… Read more

We contrarians love it when the crowd mislabels a stock and tosses it overboard. We really love it when this happens to the same stock twice!

Today we’re going to look at a perfect example: an 8.3%-paying closed-end fund (CEF) most people treat as a bond proxy. But it’s much more than that.

That’s strike one for the mainstream crowd. And it’s the first part of our setup here.

Next, when investors aren’t slapping that label on this fund, they’re mistakenly referring to it as a utility fund.

Strike two!

When a situation like this crops up, we essentially get a deal on top of a deal.… Read more

Today I want to talk about something we don’t touch on very often in these columns: an obscure (yet highly profitable) situation called a “tender offer.”

I know the name sounds a bit stiff. But if one comes along when you hold a closed-end fund (CEF)—particularly a CEF you bought when it was particularly oversold—wow.

You can find yourself sitting on a fast gain as well as a high dividend payout (as I write this, the average CEF yields around 9%).

As we’ll see in the case of one CEF below, a tender offer can take a fund purchased at an 11.5% discount and let the shareholder cash in a chunk of their holding at nearly full value.… Read more

If you like dividends, check out the discounted cash flows currently available in REIT land. Real estate investment trusts (REITs) have hit the skids in recent months as investors have panicked about the Federal Reserve raising rates. Their worries bring value to us, and today we’re going to highlight five REITs yielding 5.3% to 12.3%.

Now, we income investors are fans of REITs because they pay out most of the profits to us as dividends. Congress created this business structure decades ago, and it included a mandate for dividends—REITs, in exchange for significant federal tax advantages, must dole out at least 90% of their taxable income as distributions back to us.… Read more

This latest shift toward interest rate hikes has sent income investors into a tizzy. That’s great for us, because they’re tossing out one terrific fund kicking out a 7.8% dividend that’s grown.

This smartly run corporate-bond fund is now on the table for 11.9% below the value of its portfolio. That not only positions this fund (a closed-end fund, or CEF, to be exact) for future upside—it helps cushion its portfolio, letting us collect its 7.8% payout in peace as the Fed raises rates.

I know that may sound strange: Usually higher rates are bad for bonds, especially for funds chock full of bonds that pay out “old” rates that may be lower than the “new” interest rates likely to come.… Read more

“If winning isn’t supposed to matter, then why are they introducing a playoff system?”

I shook my head in disbelief as I whispered this unfolding “riddle” to my coaching buddy in the chair next to me. We were at the YMCA fall basketball meeting, sweating it out in the preschool room. (Where was the air conditioning on this sultry September evening?)

The YMCA regional manager, notorious for talking for an hour about the exact same thing to kick off every season, had something new. And to be honest, the “ruling” made no sense to me.

Playoffs? We’re talkin’ about…playoffs?… Read more

In one corner of the income market, a “rubber band” is stretched about as far as it can go.

When it snaps back, I expect it to catapult the prices of a select group of 10%+ payers much higher from here.

Those 10%+ payers are bond-focused closed-end funds (CEFs). This latest bond panic has blown out their discounts to levels not seen in four years. That’s dropped their prices. And because yields and prices move in opposite directions, a buy today gets us “starter yields” up to 13% here.

That’s our window—it’s exactly where our corporate-bond CEFs are now.

Here’s the thing, though.… Read more