Small-cap stocks have finally started to wake up lately, which could be a bullish sign as we head into 2026. Let’s remember that a smaller market capitalization does not necessarily mean a diminutive dividend—today we’ll discuss four small caps that yield between 7.1% and 13.3%.

It’s been a “lost decade” for small caps, which have lagged their larger brethren. 2020’s COVID reopening rally in small caps was intense but short-lived—rising interest rates, renewed interest in safer mega-cap stocks after two bear markets in three years, and a rush into predominantly large-cap AI stocks have left small caps on the outs going into this year.… Read more

When most people think about the soaring stock market, they’re really only thinking back to the end of 2022, when it feels like it all started.

I know. 2022. A year we’d all like to forget.

But looking back only that far ignores the fact that the S&P 500 is a long-term wealth generator—a really long-term wealth generator, in fact. Over the last century, it’s posted a 10.6% annualized return.

Over the last 10 years, it’s done even better, returning a robust 14.6%.

I bring this up because it’s easy to lose sight of that these days, with the news cycle constantly amping up the fear, most recently on worries about an AI bubble.… Read more

Let’s get our 2026 dividend shopping finished ahead of time, shall we?

Come January, we’ll have plenty of company from vanilla investors, rushing to “figure out the new year.” Trends. Predictions. Buy this!

But there’s no reason to wait. We already know some of the key dimensions of 2026. Interest rates, for one, are on their way down. Fed Chair Jay Powell has delivered two rate cuts to end the year, with more to follow.

Whether or not Powell personally delivers them doesn’t matter to us. Powell is on his way out. But the Fed show will go on, with a ringmaster ready to roll.… Read more

The spreadsheet jockeys on Wall Street have it all wrong—and their blunder is dragging down the average investor’s returns (and income!).

Their mistake? Looking at “old school” measures, like the recent spate of soft jobs reports, and jumping to the conclusion that the economy is hitting the skids.

Trouble is, this take is totally disconnected from reality, especially when it comes to the nation’s small businesses. Because these mom-and-pop shops are still upbeat—and many of them are looking to grow.

The proof is in the numbers. First up, even though small biz optimism did tail off a bit in October, according to the NFIB Small Business Survey, it’s still above its historical average, where it’s been for the past six months.… Read more

When it comes to our favorite income investments—8%+ yielding closed-end funds (CEFs)—there are a lot of misconceptions out there.

It’s critical that we put those right, because they’re causing some investors to miss out on CEFs, and the big (and often monthly) dividends they provide. And I know I don’t have to tell you that in turbulent times like these, high payouts like those are a lifesaver.

Two of the biggest misunderstandings surrounding these funds are:

• CEFs have higher expense ratios than passive funds, and …
• You’re better off to buy stocks, such as Microsoft (MSFT), direct, on the open market, than through CEFs.

Monthly bills are no problem for careful contrarian readers banking 9.1% yields in monthly divvies. Let’s discuss this rare but excellent dividend breed, the company or fund that pays monthly instead of quarterly.

Only 6% of dividend payers dish monthly. The rest are quarterly or annually, which will likely not be in time to cover your upcoming cell phone bill.

My monthly email from carrier Verizon arrives in a day or two. Another $267.26 will be debited from my account automatically on the 20th.

Fortunately, Verizon notes that there is “nothing I need to do” thanks to AutoPay. As if the automatic payment implies it costs any less money!… Read more

I often get asked about crypto. My response often surprises people: I don’t spend a lot of time thinking about it.

That might sound odd given crypto’s massive popularity (though many holders are no doubt regretting their buys these days, given the swan dive Bitcoin and its ilk have been on).

Nope, I avoid Bitcoin because I (and readers of my are interested in dividend income. And you won’t find any of that in crypto. Plus it’s far more volatile than we’d like. All of this is why, when we want tech exposure, we look to CEFs holding top-quality tech stocks.… Read more

Drug development will never be the same! AI is compressing time-to-market and extending the sales calendar for pharma. More profits from new medications. More new medications, too.

Many pharma and biotech stocks will boom as we enter the “sci-fi” stage of research and development. And this elite 8.8% dividend will directly benefit.

It typically takes 10 to 15 years to develop a new drug. Every month matters because patents last only 20 years. The faster a company gets a drug to market, the more months and years it enjoys with monopoly pricing power.

When patents expire, the generic versions hit the market.… Read more

Our favorite dividends are now on sale—but we still need to make sure we’re buying this dip the right way.

That means zeroing in on rich payers that not only throw off big divvies, but cushion our downside, too.

I’ve got two closed-end funds (CEFs) for you that do just that—and throw off rich 7%+ yields, too. And they avoid the deadly mistake most investors are making now.

Index Funds Pay Little, “Bargain” Techs Even Less

That mistake? Most investors are looking to beaten-down tech stocks (which pay zilch—or close to it!) or they’re grabbing a “plain vanilla” index fund, like the SPDR S&P 500 ETF Trust (SPY)—current yield: 1.1%

One-point-one-percent!… Read more

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