What if I told you there’s a way you can buy your favorite blue chips and get a dividend 5 times bigger than what your typical S&P 500 name pays today?
Let’s be honest: with an income stream like that, backed by popular names like cigarette maker Altria Group (MO), telco Verizon (VZ) and even Google, now known as Alphabet (GOOGL)—more on these three stocks below—you’d leap at the chance, right?
The truth is, you’d be crazy not to.
Well, now you can. And today I’m going to show you exactly how to do it—and 1 fund yielding 9.8% to get you there instantly.
Like Buying Cheap in 2009 … and Knowing What Happens Next
Funny thing is, for a brief, shining moment in the not-so-distant past (early March 2009), many blue chips actually did deliver payouts of 7%, 10% and more.
The catch? You needed nerves of steel to plunge in while everyone else was sprinting from the worst market crash since 1929.
The height of this dividend bonanza came in March 2009, when the market finally hit bottom. Back then, the dividend yield on the average S&P 500 stock spiked to 3.9%, twice what you’d get today.
That, of course, is because share prices had nosedived, driving dividend yields up as they did.
Popular dividend payers yielded even more, throwing off payouts we’d never seen from them before (and likely won’t again). Check out the incredible yields Altria and Verizon dropped on shareholders in early March of ’09:
Altria’s (Brief) 11.5% Cash Windfall
But as I said, grabbing these payouts required monk-like calm. Plus, you’d have needed plenty of cash ready to deploy fast, as these fat yields vanished as the rebound kicked in and dividend payments rose from the dead.
What I’m going to show you today requires neither of these things.
It’s a simple, one-click strategy that lets you lock in safe, high-single-digit (and low-double-digit) payouts from the likes of Altria, Verizon, Google, Microsoft (MSFT), Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) and hundreds of other dividend payers you know well.
And unlike that fleeting moment in ’09, you can buy as quickly (or as slowly) as you like, either all at once or a bit at a time.
The best part? You can grab these “hidden” dividends at fire-sale prices, too.
My “Dividend Conversion Machine” Revealed
The simple strategy I’m talking about really isn’t a strategy at all: it’s an asset class called a closed-end fund (CEF).
Don’t let the jargon-y name fool you. CEFs have a lot in common with garden-variety mutual funds, but with two pretty straightforward differences:
- Their market prices tend to differ from the value of their underlying portfolios, or what’s known as net asset value (NAV). This is where our chance to buy cheap comes from, as I’ll show you below.
- They boast outsized dividend yields (payouts of 7% and up are common in the CEF space)!
Best of all, many of these CEFs hold the same blue chips and Dividend Aristocrats you’re probably sitting on now, so trading them in for these outsized income streams is easy.
The truth is, there are many stock-owning CEFs out there, and your favorite blue chips will show up in many of their portfolios. But to cut to the chase, let’s dive into one of my favorite CEF buys now:
A Classic Dividend Conversion Machine With a “Sleeper” 9.8% Payout
The CEF I want to show you is the General American Investors Fund (GAM)—holder of some of the biggest names on the market, including Berkshire Hathaway, Alphabet and Microsoft.
First-level investors often overlook GAM because of its dividend policy: it paid a $0.50 dividend in February 2018 and nothing since, leaving it with a puny 1.7% yield. But we need to look closer, as that 1.7% is just the start of the cash stream GAM hands us.
Because the lion’s share of GAM’s dividend rolls out as a “special” payout every December. This payment is based on management’s estimate of income from the fund’s portfolio for the full year, plus capital gains from January through October.
So last month, GAM made two additional payouts: a dividend of $0.30 a share for estimated full-year investment income, plus $1.95 a share from gains on sold stocks. When you factor in those two payouts—which total $2.25 a share—the fund’s real trailing-12-month yield comes out to 9.8%!
Oh, and that $0.50 February payment everyone thinks is the real dividend? It’s just spillover—additional capital gains from the last two months of the year, plus any extra income that trickles in.
And if you’re worried these special payouts are unreliable, don’t sweat it—they’ve rolled in every single year since GAM’s inception, even during the 2008–09 crisis.
A Year-End Cash Hit You Can Count On
This may seem like a bizarre policy, but it’s there for a reason: it gives management leeway to invest in stocks it feels are set for strong growth—and this approach has paid off in spades. Check out the massive lead GAM has built over the S&P 500 since it started trading publicly in the late ’90s.
Hands-On Approach Pays Off
And don’t forget, due to those big payouts, pretty well all of that gain was in cash!
The upshot? Thanks in part to this unusual dividend policy, whose value has been completely ignored, GAM trades at a ludicrous 18% discount to its net asset value (NAV, or the value of its underlying portfolio).
So let’s grab a stake now, before the herd figures out what it’s missing and piles in, slamming that yawning discount window shut as it does.
Even Better: 8%+ Dividends Rolling in Monthly
The best part about CEFs is that many of them drop their 8%+ dividends into your account monthly instead of quarterly.
That includes the funds in my new 8% “Monthly Dividend” portfolio, which is built on a carefully crafted set of CEFs, high-yield preferred shares (again, from stocks you know well) and well-established real estate investment trusts.
I just took the wraps off this rock-solid portfolio, and I’m ready to share it with you now—at no cost—when you click right here.
Thanks to its massive (and safe) 8% average yield, this powerful set of investments lets you kick-start an immediate $40,000-a-year income stream on a $500k nest egg.
That’s a 100% reliable $3,000+ dropping into your investment account every single month, with upside on your original investment to boot!
It really is a set-it-and-forget-it wealth-building machine.
To “swap out” your current dividend payers for this eight-stock powerhouse portfolio, you really need to do only two things:
- SELL EVERYTHING and …
- Buy the 8 bargain monthly dividend payers I’ll show you here.
Don’t be left out while other investors lock in their golden years with this powerful new portfolio. Simply CLICK HERE and I’ll give you all 8 of these stocks’ names, tickers, buy-under prices and more right now!