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Own a portfolio stocked with S&P 500 stocks? Or maybe an S&P 500 index fund?

It’s okay if you do. We won’t judge (well, maybe a little bit!). But answer me one question (without checking your brokerage account).

How much in dividends will you collect in November?

If you’re like most people, you don’t know. And if you do, you have a much better handle on your quarterly paying holdings than most (or maybe you’re using our AI-powered dividend tracker, Income Calendar!).

It’s understandable if you can’t come up with this number off the top of your head. Let’s drop a fictional $100K into five major Dow Jones Industrial Average stocks—Coca-Cola (KO), Procter & Gamble (PG), UnitedHealth (UNH), International Business Machines (IBM) and Boeing (BA)—and see what Income Calendar comes back with.… Read more

I know, I know. This levitating stock market feels like a bubble that will burst any day.

So I get it if you’re nervous. And that’s actually a good thing. It pays to be wary when everyone else is throwing money at any asset—stocks included.

My take? Well, it might surprise you, but it’s this: We’re not in a bubble—AI-driven or otherwise.

But I get the fear—which is why we’re going to look at a two-step move that addresses it. This “best of both worlds” play gives us yields up to 8.2% and a hedge if, say, bullish analysts (like me!)… Read more

Closed-end funds (CEFs) are the last bargains left on the board. CEFs are often confused with mutual funds and ETFs, but they are different because they often trade at discounts to their net asset values (NAVs).

For contrarians like us looking for deals, this is key.

CEF trading is relatively thin. This created inefficiencies, such as select CEFs trading for as cheap as 95 or even 90 cents on the dollar.

Plus, some of them dish big dividends—like these five.

Eaton Vance Tax-Advantaged Dividend Income Fund (EVT)
Distribution Rate: 8.1%

Let’s start with the Eaton Vance Tax-Advantaged Dividend Income Fund (EVT)—a CEF that buys not just common stocks, but also preferred stocks, that distribute qualified dividends.… Read more

The AI data-center buildout is all over the news, and for good reason: It’s quite literally upending the economy.

That’s set up plenty of opportunities for us income investors to cash in. But in a moment, we’re going to talk about one specific fund we need to sell yesterday. It yields a sharp 9.9% now. The problem? It’s nearly 2X overvalued!

It’s easy to see what’s catching investors’ attention on the data center front: Investment in AI’s computing backbone is on track to contribute more to US economic growth than the American consumer.

To say that this is incredible is an understatement.… Read more

The manic market just dumped business development companies (BDCs), again. These three dividend stocks paying up to 11.7% are poised to bounce back when sanity returns.

BDCs, which lend money to small businesses, are on the “outs” with the Wall Street suits after multiple soft jobs reports. The spreadsheet jockeys fret about an unemployment-induced economic slowdown and miss the real story: small businesses are making more money than ever thanks to AI.

Here is what’s actually happening in the Main Street economy:

• Employers—especially nimble small business owners—are implementing AI to streamline and even run their operations.
• With AI tools, fewer humans are needed.

By now, it’s glaringly obvious: AI is replacing workers. And it’s boosting corporate bottom lines as it does.

I call this the “growth-without-hiring” trend, and it’s accelerating. Today we’re going to grab our share in the form of big dividends (up to 8.1%) and upside, too.

Latest Payroll Report Tells a New (Yet Familiar) Story

The latest evidence that “growth without hiring” is the real deal? The September ADP payrolls report, which showed that companies cut 32,000 positions. The August numbers were also revised to 3,000 losses, not the 54,000 gains originally reported.

With numbers like those, you’d expect the US to be in recession, or close to it.… Read more

An intriguing article came across my desk recently, and it said something we income investors need to talk about.

It was a Q&A with Morningstar’s director of personal finance, Christine Benz—and it reinforced, to me, why now is the time to snap up one of the top (and 8.4%-yielding) picks from the portfolio of my CEF Insider service.

I encourage you to read this article. It’s mostly fine. But it contains one piece of advice I think will be widely misunderstood. At one point, Benz says:

“What we’ve seen from real estate equities is kind of a steady upward march in correlations with the broad US equity market over the past couple of decades, to the point where I really don’t see the diversification benefit.”

Wall Street left these 8.5% to 16.6% yields for dead. But their next dividend raises may show that these patients have a pulse—and send these prices higher before year-end.

Even better, three of these companies are quarterly dividend hikers. These are companies that have a track record of at least a few years of improving their payouts not once a year, but once a quarter.

What are the red flags to look for when these companies make their next announcements?

Hess Midstream LP (HESM)
Distribution Yield: 8.5%
2024 Increase: 10.9% (across four hikes)
Projected Q4 Distribution Announcement: Late October

Hess Midstream LP (HESM) is a master limited partnership (MLP) that owns, operates and develops a number of midstream energy assets, primarily located in the Williston Basin area of North Dakota.… Read more

What if you could squeeze, say, a 70% dividend yield from a fast-growing AI stock like NVIDIA (NVDA) or Palantir (PLTR)?

Sounds great, right?

Instead of relying just on these stocks’ prices for your profits (since dividends are, frankly, the furthest thing from their CFOs’ minds), you get their returns as high-yielding dividends.

That’s something a new breed of ETFs is promising. These funds, which are gaining in popularity, hold just one stock—usually a Palantir, Tesla (TSLA) or NVIDIA—and trade options on that one stock to deliver stated yields often way above 50%.

Does it work?

First, let me say that, as someone who has covered 8%+ yielding closed-end funds (CEFs) for over a decade, I get the sentiment behind these funds.… Read more

In most US industries, banks help businesses finance their buildings. The lenders also provide working lines of capital for the operations to grow.

Cannabis is different. It is tricky for operators to find money due to federal roadblocks.

At the national level, cannabis is still illegal. However, 40 states have legalized the drug in some fashion. Uncle Sam mostly looks the other way and lets states regulate their own markets—except when it comes to banking and taxes.

Banks cannot lend to cannabis operators. So, good luck financing that building.

Also, there is a tax code relic of the 1980s war on drugs (“Just Say No!”)… Read more