Author Archive: Michael Foster

There’s an intriguing trend showing up in second-quarter earnings. And today I’ll show you how you can jump on it with a cheap closed-end fund (CEF)—I’m talking a 16% discount here.

Then there’s the dividend: a “hidden” 9.7% yield. I’ll say more about that shortly.

This trend might sound boring at first, but it’s crucial, because it proves that most folks have the wrong idea about the markets: they should be buying instead of fretting over interest rates, the next recession or other headline-driven fears.

But now more than ever, it’s where you buy that’s important. And the overlooked trend I’ve discovered proves that you need look no further than our own backyard: in the USA.… Read more

Real estate investment trusts (REITs) sound boring, but the truth is they’re the hottest investments out there. And today I’m going to give you two great ways to buy in: both are REIT-focused funds with big yields—I’m talking 6.8% and up!

You’ve no doubt noticed that REITs get little attention in the financial press. That’s because the media is obsessed with stories of big growth or big failures, and REITs are rarely one or the other. Instead, they help you quietly build wealth by providing big income and gains year in and year out.

Today I’m going to give you three reasons why REITs are a great buy now.… Read more

There’s a scary-sounding catchphrase making the rounds these days—and it’s tricking folks into missing out on big dividends (I’m talking yields of 8.6%+) and upside.

The catchphrase: “earnings recession.”

You might have heard these two words. If you take them at face value, you could easily take them to mean that it’s time to hold off on stocks, particularly with the market hitting all-time highs on the regular.

That would be a mistake, because now is the time for us contrarians to buy—particularly high-yield closed-end funds (CEFs) like the 8.6% yielder I’ll show you below. It holds many of the top S&P 500 names you know well, like Apple (AAPL), Alphabet (GOOGL) and Amazon.com… Read more

Something unusual has happened in closed-end funds (CEFs) lately—a lot of new names are showing up in the leaderboard of the top long-term performers.

According to my CEF Insider service, there are now 36 funds that have delivered over 15% annualized total returns over the last decade, and three have delivered over 20% annualized returns, including their hefty dividend payouts.

And today we’re going to dive into five that have returned 17% and up (annualized) over the last decade. They’re powerful income generators for any market, with monster dividend yields all the way up to 10.5%!

Let’s get started.

Winning CEF #1: Cohen & Steers Quality Income Realty Fund (RQI)

RQI uses investors’ money to build a diverse portfolio of real estate investment trusts (REITs).… Read more

Today we’re going to dive into a question subscribers to our CEF Insider service often ask: what happens to a closed-end fund’s dividend when stocks take a tumble?

The answer is coming up shortly (and if you’re at all worried about this levitating market suddenly snapping back, you’re going to like what I have to show you).

Then I’m going to reveal one 6.6%-paying fund whose management is dialed in to market swings and know how to protect their investors’ income when things get rough.

How do I know? Because they did just that in the 2008-09 crisis.

More on that shortly.… Read more

Members of our CEF Insider service often ask me when they should sell a closed-end fund.

The truth is, when it comes to CEFs, it’s easier to know when to buy than when to sell.

If the fund is well managed, has a strong track record, is deeply discounted in relation to net asset value, or NAV (another way of saying the underlying value of the fund’s portfolio) and has a relatively safe dividend, that CEF has already gone a significant distance toward being a buy.

Sell signs aren’t always as clear, but they’re still there. You just need to know what to look for.… Read more

Imagine if you could find a single signal that would warn you when a recession is on the horizon.

Well, one such indicator does exist—and it’s telling us that storm clouds are indeed building. That means it’s time for contrarians like us to get greedy for income (and gains)!

I’ll explain this seeming contradiction—and name a 6.7%-yielding fund that should be on your list—in a second. First, here’s more on this reliable “recession indicator.”

A Three-Decade History of Being Right

Campbell Harvey, an economist at Duke University, knows all about this recession signal: he was the first person to run across it, over 30 years ago.… Read more

The trade-war panic is in full retreat—and it’s left us three ridiculously cheap funds set to soar even higher than the market in the coming months.

Best of all, we’ll bag some very nice dividends from this trio: I’m talking outsized yields up to 7.4%!

Before I show them to you, let’s talk about why the market looks set to head higher.

Right now, the SPDR S&P 500 ETF (SPY) is up 18.3% for 2019. This sounds too good to last, but keep in mind that this jump started near the depths of the late 2018 correction—a low level.

That makes the year-to-date number misleading; a longer-term view shows signs of consistent and slow recovery from 2018’s major volatility:

A Steadying Market

There are a lot of reasons for this, but the two most important ones are good signs for stocks.… Read more

Almost everyone walked right by the three monster dividends I’ll show you in a minute: they yield up to 9% now, and we’re looking at 15%+ price upside too!

The media always downplays these picks—and never gives them the credit they’re due, especially when it comes to their massive dividend payouts.

But a few folks are starting to see these three funds as the source of steady retirement cash (plus upside) they are. So you only have a short time—I’m talking days—to make your move here.

I’ll unmask these three steady retirement dividends shortly (including one that even pays you every month, as opposed to every quarter), and rank them from worst to first.… Read more

Until about a year ago, the most common question I got from readers was always something like: “How will rising interest rates affect my portfolio?”

The question looks simple, but the answer was not, and in 2015, when the Fed said it would start hiking rates (the first hike came in December of that year), plenty of panicked investors sold (despite my advice at the time):

Short-Term Rate Fears …

What this chart really meant is that these short-term panickers gave patient investors a great buying opportunity, as the next chart shows:

… Set Up Longer-Term Gains

But the folks who sold right around the time of the first rate cut missed out because they feared the Fed.… Read more