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Historically, for whatever reason, stocks have made most of their gains between November 1 and May 1. (Hence the phrase “sell in May and go away.”)

I won’t bore you with the statistical details because they don’t matter for our purposes. Every year is unique, and we treat each as such. But, for our contrarian edge, it is helpful that the onset of fall provokes fear in the hearts of mainstream investors.

The S&P 500 is acting like it’s about to slip off a cliff. It’s been a year since the market’s last meaningful correction. We’re in the fragile half of the year and, seasonally speaking, September and October tend to be particularly weak.… Read more

There’s one word that strikes terror into the hearts of mainstream investors: leverage.

But it really shouldn’t—and today I’m going to show you how to make sure you’re using leverage the right way, while minimizing your risk and tapping into some of the biggest gains (and dividends!) available to us today.

As you probably know, closed-end funds (CEFs) commonly use leverage to amp up their investment returns (and their dividends, which yield 6.5%, on average, as I write this). That’s fed their strong gains this year, as the Federal Reserve has kept interest rates low:

CEFs on a Tear

Source: CEF Insider

The CEF Insider Index Tracker has shown double-digit gains everywhere except in municipal bonds (which is normal, as we buy munis for their stability and tax-free dividends).… Read more

“Is $1 million enough to retire on?”

Paul Katzeff of Investor’s Business Daily asked me earlier this month. He was especially keen on high-paying ETFs that would throw off enough dividends to fund a nice retirement.

For example, we chatted about the Global X Nasdaq 100 Covered Call ETF (QYLD), which sells covered calls on the Nasdaq index itself to create cash flow.

QYLD’s trailing yield is a sweet 11.8%, which means million-dollar positions would have generated $118,000 in dividend income alone. Plus, the principal grew, too, thanks to price gains. The Nasdaq has been on a tear since last year, helping QYLD to 21.2% total returns (including dividends) over the past twelve months.… Read more

Mainstream investors are stuck with cheesy dividend ETFs paying measly sub-3% yields. But we contrarians can grab ourselves a lot more dividend cash with a “switch” in our portfolio that more than doubles our yield, to 6.6%!

We’ll be fully diversified, too, with bonds, S&P 500 stocks and real estate populating our holdings—703 investments in all. And they’re all hand-picked by expert money managers who evaluate credit and interest rate risk for us.

Plus, this “6.6% retirement solution” has more price upside! The 3 battleship funds we’ll get into below are geared to grind higher as they pay their dividends, no matter what the market does.… Read more

Many folks see dividends as just a source of income. But they’re so much more! The two high-yield buys I’ll show you today, for example, are what I like to call “dividend Swiss Army knives.”

(One of these stealth funds pays an unheard-of 9.4% payout today, so you’d be pulling in a cool $9,400 in dividends for every $100K invested—enough to recoup your entire investment in dividends alone in a bit more than 10 years! It doesn’t get much safer than that.)

And yes, I know full well how corny “dividend Swiss Army knife” sounds. But the name works! Because apart from simply paying you a massive income stream, these two funds—closed-end funds (CEFs), to be specific—also:

• Fade your portfolio’s volatility (a key strength in the overbought market we’re facing today).

I’m someone that pays close attention to my surroundings.

My wife calls me ‘attentive,’ and I think it’s a fair assessment given my analytical background.

There’s one thing that always seems to capture my attention.

It’s those giant, bright, colorful shiny billboards that sit on top of every single highway in America.

Ask my wife, and she will tell you about the time that I nearly drove our RAV4 into a pickup truck on Interstate 93 in Boston.

We were heading back from a rural wedding in New Hampshire and only a few miles from home.

And there it was—a half-naked, dinosaur-sized photo of Anna Kournikova (the former tennis player) advertising something…maybe it was Nike or some liquor, I can’t quite remember.… Read more

Since traditional banks have backed off on business lending over the years, BDCs (business development companies) have stepped in. They provided much-needed debt, equity, and other financial solutions to small businesses—and much-needed income to dividend investors.

As an asset class, BDCs yield 8%. We’ll discuss three popular payers—with dividends up to 8.3%—in a moment.

Congress whipped up BDCs with a few pen strokes in 1980, creating a structure that’s incentivized to provide smaller companies with financing. BDCs receive special tax privileges, and in exchange, they must return at least 90% of their taxable profits to shareholders as dividends.

If that sounds familiar, that’s because that same tradeoff is enjoyed by real estate investment trusts (REITs), which were formed the same way, 20 years prior.… Read more

By now I’m guessing you’ve heard of the FIRE movement—you may even know someone who’s following this “extreme” form of retirement saving.

An acronym for “financial independence, retire early,” FIRE advocates look to retire earlier than the traditional age of 65—and I mean way earlier. Some even clock out in their 30s!

They do it by building up a huge cash hoard over a period of years, then making steady withdrawals (with some going by the flawed 4%-withdrawal rule) to sustain themselves. Some keep working during their “retirement”; others clock out entirely.

I was thinking of the FIRE folks this week and wondering how they’d fare if they tapped into the wealth- (and income-) generating power of closed-end funds (CEFs), which boast monster yields, sometimes north of 10%.… Read more

I sold this stock for a 4X return. It was a big gaffe.

Fortunately, my amends—a renewed recommendation—helped careful contrarian readers to 22% profits in just over three weeks!

We’ll talk about their haul in a moment. First, let me come clean with my hiccup.

Twenty years ago, when I was young, naïve, and relatively broke, I piled my life savings into Dick’s Sporting Goods (DKS). My massive $500 stake netted me about 25 shares.

DKS had recently gone public. I was completely “dialed in” to the offering, having spent much of my youth combing the aisles of the nearby Dick’s Amherst, NY retail location.… Read more

Today I’m going to give you a shot at the next Texas Instruments (TXN), which has delivered a dividend that’s surged 104% since members of my Hidden Yields service bought it in 2017.

Or the next Jefferies Financial Group (JEF), whose dividend has popped 67% higher in the last year alone. 

The key to breakneck payout growth like this is investing in megatrends that reshape society. Right now, we’re tracking six:

• Technology, as it reshapes all our lives in the COVID era.

• Healthcare, as more people pay attention to their health (and more employers entice scarce workers with enhanced medical benefits).