We should avoid REITs right now because the Fed talks tough about raising rates.

Or we should buy REITs right now because the Fed’s worries are overblown.

Which is true? Well, it depends.

Let’s talk about our beloved real estate investment trusts, or REITs, which we favor as retirement-focused investors. REITs must dish most of their profits to us as dividends. A congressional act created them decades ago, and it requires them to send us at least 90% of their taxable income as payouts, in exchange for tax advantages.

Now the lazy Wall Street maxim holds that REITs trade opposite interest rates.… Read more

Every now and then, something happens that shines a light on the value of our favorite income investments—our 8%+ paying closed-end funds (CEFs).

These stout income plays are so valuable, in fact, that some activists are willing to go all the way to the Supreme Court to gain more influence over them.

Let me explain.

A couple weeks ago, the nation’s top court released a decision that meant a lot for CEFs, including those in the portfolio of our CEF Insider service, which yields 8.7% on average as I write this.

Let me set the scene, starting with the activist in the spotlight.… Read more

The Supreme Court just ruled on our closed-end funds (CEFs).

Wait. What? Our beloved dividend machines, the lightly driven passenger payout cars we ride to comfy retirements? Our CEFs?

Yes, the third branch of the US government just spent its time deliberating a legal question about our humble, underfollowed CEFs. Why do the courts care about our underowned and unappreciated funds?

We love ‘em because they’re obscure. Underfollowed. And, best of all, inefficient.

Wall Street whales can’t jump into our profitable CEF pond. Most of these funds are $2 billion in market cap or less. If a whale cannonballed in, the entire sector would pop and the value would instantly disappear.… Read more

New Fed Chair Kevin Warsh’s hawkish debut has given us a “3-stage” plan for 12% dividends now—and strong gains later.

Here’s how I see that playing out, plus two tickers we can use to grab that reliable double-digit income stream.

3 Reasons Why My Falling-Rate Call Still Stands

First up, I haven’t budged on my call for lower rates. But these things rarely happen in a straight line. In fact, had the Iran conflict not occurred, we’d almost certainly be talking about rate cuts today. 

But oil prices are falling as I write this, and the International Energy Agency just predicted a supply glut next year.… Read more

ASA Gold & Precious Metals Limited (ASA) is a standout among closed-end funds (CEFs), but not for the reasons we’d like!

For one, this gold-focused CEF pays almost no dividend itself (its yield is a meager 0.14% as I write this). That’s unusual for a CEF, as investors mainly buy these funds for their high yields. As I write this, the portfolio of my CEF Insider service yields a stout 8.9% on average.

As the fund’s name says, its main function is to give investors access to physical gold (64.2% of the portfolio). Silver makes up another 5%, and shares of gold-mining companies account for most of the rest.… Read more

Let’s talk about big dividend payers that are seeing strong buying from insiders.

Yes, we’re talking about the big boss slapping down their own money for shares nobody is forcing them to buy—shares they may already have plenty of.

Why do we like buying as a signal? Insiders can sell for a variety of reasons:

• A new divorce
• A new boat
• A higher burn rate
• Kids off to college

There are many reasons an insider may sell for the cash. But there’s only one reason they buy: they believe the shares are going up.

Today, we have stock indices near all-time highs.… Read more

This Iran deal adds one more tailwind to our (already surging) 8%+ paying closed-end funds (CEFs).

It’s just one more “boost,” on top of many others, that point to more upside ahead for these proven income plays.

Why do I say that? Because if the agreement holds up (and that’s still uncertain at this point), oil will likely continue its retreat. That, in turn, sets the stage for lower inflation—and falling interest rates, too.

And the lower rates go, the better CEFs tend to perform.

That makes now, while rates remain elevated, the time to make our move. And the Neuberger Berman Next Generation Connectivity Fund (NBXG), a recent addition to the CEF Insider portfolio, is a solid option that’s clinging to an undeserved double-digit discount.… Read more

I was happily sipping my morning coffee on the couch. Quietly…’til now.

Here marched my eight-year-old, straight at me with a bone to pick.

“Dad, MarkRober said the cars can’t really drive themselves. They drive into walls! So if you get a car that drives itself, it’s going to drive you right into a wall.”

She paused and glared at me while she reached for her conclusion.

“Is that what you want, Dad?”

MarkRober’s real name is Mark Rober. He’s a YouTube guy who preaches science to kids. (Note: Preach isn’t quite teach.) My daughter pronounces his name as one when she recites his gospel.… Read more

Once again, the mainstream crowd is wrong—this time on real estate. And they’re wrong for the same reason they always are: They’re looking at the wrong numbers.

We’re fine with that. We saw it coming.

And we’re ready to profit through an overlooked dividend grower that throws off $14 billion in yearly cash flow. It hands much of that to us as share buybacks and a dividend that’s jumped 11% annualized in the last five years.

We haven’t seen an opportunity like this since 2021. Back then, pandemic restrictions kicked off a home-renovation bonanza. Another one is getting started now.

Welcome to “Home Reno Boom 2.0”

Today, six years after COVID forced me to turn my patio into Puerto Backyarda (complete with a “misting fan” from Home Depot—hint!),… Read more

We love CEFs for a simple reason: Their big dividends are the best route to financial independence.

I say that from experience: Years ago, CEFs’ high income streams allowed me to leave a full-time job I disliked, travel, and live wherever I wished to. Later on, I launched my CEF Insider service to help other investors unlock these funds’ vast income potential.

Today we’re going to look at a high-quality (and high-yielding) equity-focused CEF to see how it delivers its outsized income stream (a 10.5% yield as I write this). Then we’re going to stack it up against another CEF you might think is a strong buy, but unfortunately this fund’s size and celebrity manager mask some significant flaws.… Read more