Author Archive: Michael Foster

It’s everyone’s dream—a double-digit yield. And what’s dreamier than a 13.6% payout?

That’s exactly what the little-known, small fund I’m going to show you today promises.

And you should run away fast.

Before I explain why, let me tell you what this fund does and how it works.

I’m talking about the Stone Harbor Emerging Markets Income Fund (EDF), a tiny fund focusing on developing countries that has just $229.4 million in assets under management.

For the last 8 years, the fund’s managers have been doing their best to make it grow (and keep its juicy 13.6% payout coming) by choosing the best stocks, bonds, foreign currencies and other assets in emerging markets.… Read more

It’s happening again: blood is in the streets.

And if you remember the timeless advice of Warren Buffett, you know what to do: be greedy.

Because this selloff shouldn’t be happening (I’ll show you why in just a couple paragraphs)—and as a result, there are plenty of extremely undervalued bargains just waiting to be snapped up.

Toward the end of this article, I’ll reveal 3 funds chock full of high-quality, oversold stocks and yielding up to 6.4%. But first, let’s look at what’s driving this income (and gain) opportunity. It comes down to a glaring (and very temporary) disconnect in the market.… Read more

Today I want to show you one of the most ridiculously oversold funds. Not only is it absurdly cheap right now, but it also pays a 7.5% sustainable dividend.

Before I get into those big cash payouts and how they’re possible, let me first explain why this fund is such an incredible bargain today.

Imagine that you could get shares in Microsoft (MSFT), Alphabet (GOOG), Apple (AAPL) and JPMorgan Chase (JPM) for 5.4% less than the market price of all of these companies.

Wouldn’t you buy as much as you could?

Well, now you can, thanks to the Eaton Vance Enhanced Equity Income Fund (EOI).… Read more

Today I’m going to show you 3 funds that give you an income stream the taxman cannot touch.

These 5% dividends get even more exciting when you see their “real” yields, thanks to that tax-free status.

A Low-Key Cash Machine

It’s all thanks to unsung municipal bonds, a kind of debt that cities, counties and states issue to raise funds for building roads, bridges, schools, hospitals—all kinds of things that make life easier for their residents.

To encourage investors to get into this market, the US government allows the income from these bonds to be distributed to investors without any tax payable at the federal level.… Read more

Today I’m going to show you 4 funds that, when put together, give you a juicy 7.2% dividend yield.

And that’s just the start. In addition to giving you $595 per month in income for every $100,000 invested, this “instant” 4-fund portfolio gives you diversification that limits your risk of losing cash in a market downturn.

Oh, and there is capital gains upside here for you, too.

The reason for that upside is that all of these funds are trading at a pretty big discount to their net asset value (NAV).

Let me explain.

Each of these picks is a “closed-end fund,” a unique type of fund that has a few key advantages over more familiar mutual funds and exchange-traded funds.… Read more

Inflation fever is back! And today I’m going to show you a “one-click” way to cash in with a quick gain and a 7.7% cash dividend too.

First, you may have been under the impression that inflation was off the list of worries for now, since February’s fretting over rising prices sent the market into full swan dive mode:

Inflation Terror Sideswipes Stocks

But March brought us a nice surprise: inflation is not as bad as previously thought. When it comes to one measure of inflation known as “personal consumption expenditure,” or PCE, we are still seeing price gains far below 2%:

Prices Rising, But Still Below Critical Level

But now the herd is an uproar again—and it has everything to do with the “inverted yield curve.”… Read more

One of the greatest things about closed-end funds (CEFs) is that they often cost less than they’re really worth.

And no, I’m not basing that on some obscure metric—I’m literally talking about the difference between the market price of the assets the fund owns and the market price of the fund itself.

It works like this: a CEF can trade for, say, $9.90, even though all the assets the fund holds (known as the net asset value, or NAV) are worth $10. Believe it or not, this happens a lot—it’s exactly how billionaire investors make big money in CEFs.

Take, for instance, Boaz Weinstein of Saba Capital Management.… Read more

With earnings season in the rear-view and the end of the first quarter looming, you’re probably asking yourself one thing right now…

… just how good is the stock market?

I’ll give you the answer (which I think you’ll like) in a moment.

Then I’ll show you 2 funds whose portfolios are packed with familiar stocks, including Apple (AAPL). Both funds are poised for strong gains in 2018 while handing you fat cash payouts up to 8.8%!

Finding Bargains in a Surprising Place

First, if you’re like most folks, you might feel queasy about any stocks—including “reliable” blue chips—after the stomach-churning drops we suffered in February.… Read more

The big rebound is on! But don’t worry, your opportunity to grab big gains (and dividends) hasn’t evaporated.

There’s still time!

And you can start with 3 of the 4 funds I pounded the table on back on February 19. At the time, all 4 of these cheap selloff buys were paying a combined 13.4% income stream.

So why are just 3 of these funds still worthy of your attention, only a few weeks later?

I’ll unpack that—and name these 3 top-flight funds—in a moment. First, let’s step back and take a look at what happened in a very wild February, and where it all leaves us now.… Read more

I’m getting plenty of worried emails from readers, asking me if the near-10-year bull market in stocks is over and if it’s time to get out.

I give them the same answer every time: no.

Today I’m going to show you why—and reveal 2 unheralded funds that hold shares of the household names you know and love, but with two added twists: they give you a predictable shot at big gains in the next 12 months. And they do it while handing you an outsized average dividend yield of 11.3%!

That’s enough to hand you $942 a month in income (or $11,300 a year) on just a $100,000 investment!… Read more