Updated: April 26, 2017
Closed-end fund (CEF) investors regularly go crazy. Their bouts with investment insanity often present us contrarian income hunters with 8%+ yields. And big price upside to boot.
But be careful, because these first-level types can be as greedy as they are fearful. It’s important to fade both of their emotional extremes for dividend security and price gains.
Today the mood amongst CEF investors is generally upbeat. Which means there are more “sells” than usual in a sector that should generally be greeted with a bit of skepticism (more on this in a minute).
However there are a few compelling buys today that are a retiree’s dream – 8% yields with, say, 30% price upside. We’ll get to those in a moment. First, let’s make sure you don’t own any overpriced funds. …