We contrarians love a good panic. Dividends are on sale!

The closed-end fund (CEF) aisle is where we do our best bargain shopping. Wall Street ignores CEFs, creating obscurity that we feast on. Discounts, mispricings and high yields are here.

Why the bargains? CEFs routinely go on sale. Thanks to their low profiles, supply and demand imbalances routinely disconnect a CEF’s price from its underlying assets.

When the value swings heavily in our favor, we buy.

And we have some dandy discounts now, with some big divvies attached! These five yields have soared to levels between 6.3% and 12.9%.

Plus, they are trading at discounts up to 12%.… Read more

Something crucial is happening in AI—just as the situation in Iran pulls attention the other way.

More experts—and more importantly, more data—is pointing to something we’ve been arguing at all along: AI is a productivity “unlock” that will slash corporate costs and boost growth.

Six months ago, most people worried that AI would be at best a disappointment and at worst a bubble. Now the data is starting to tell us something else: It’s poised to drive profits higher.

But because of the Iran situation, this shift isn’t getting the attention it deserves. That’s handing us a chance to get ahead of the curve as AI bears give way to AI bulls.… Read more

If you are a serious dividend investor, then you know the answer to this question:

How much dividend income are you going to make in the next 12 months?

In other words, what are your projected dividends between now through March 2027?

If you don’t know, then you’re not as dedicated to dividends as you thought. Disappointing, but fixable with

And please, don’t tell me I’m being hard on you. If that’s the way you feel, then this is the tough love that you need. Your wakeup call for 2026.

It’s time to treat your dividend investing like a business.… Read more

I know uncertainty is the word on everyone’s mind these days, but is this level of terror actually justified?

Source: CNN

Short answer: Nope.

In fact, we contrarians are more nervous when our CNN Panic-O-Meter hits “Extreme Greed!” Times like these are when we go shopping. And closed-end funds (CEFs) throwing off 8%+ dividends are a great way to do it, since many are in the bargain bin as we speak.

We’ll talk two tickers (paying dividends north of 10%) in a sec. First, here’s what the mainstream crowd is missing—and why it’s teeing up these 10% income opportunities.

First, the Iran War has thrown AI off the front pages—and once again, the crowd is overlooking just how much this tech stands to “amp up” productivity (and profits!).… Read more

There are three stories moving markets right now:

1. The Iran War.
2. The AI revolution, as heavy investments in the tech cause both excitement and worry, particularly around how AI affects software companies.
3. The private-credit market. Because many software companies relied on credit from private, non-bank lenders, the world of private credit (which went from about $500 billion a decade ago to about $3 trillion today) is wobbling.

All three are combining to put pressure on private-credit funds. That, of course, is a headache for private-credit investors, especially because they were marketed on the idea that they offer lower volatility.

We are now seeing managers of private-credit funds field redemption requests that exceed these funds’ withdrawal “caps.”… Read more

Dividend raises mean something right now.

These are companies saying that they are going to make more money in the year ahead in the face of everything that is happening around the globe.

Let’s review six upcoming dividend raises—stocks paying up to 7.2% today!—dished by companies with the audacity to continue collecting cash regardless of what the world has in store for them.

“Frontrunning” these announcements, by the way, can be an excellent way to generate returns. As these dividends pop they will act like “magnets” pulling these associated stock prices higher. Post-raise we’ll often see that the current yields are unchanged.… Read more

Iran War volatility has tossed finance stocks “out with the bathwater.” It’s giving us a nice “second chance to buy” my favorite finance-focused dividend.

That would be the John Hancock Financial Opportunities Fund (BTO), which yields 7.7% today and, as we’ll see, trades at a discount that’s double what most investors think it is.

Why April 2026 Could Be April 2025 Redux (But With a Faster Rebound) 

To see why I think the market is making a mistake when it comes to finance stocks, let’s rewind to last year, when stocks sold off on the so-called “Liberation Day” tariffs.

From the Spring 2025 Selloff …

That selloff has actually looked a lot like this one so far, with a similar depth:

… to Its 2026 “Twin”

Here’s what I really want to draw your attention to: In 2025, the finance sector—shown by its benchmark ETF in purple below, didn’t fall as hard as the rest of the market, and soared on the other side:

Finance Beat the S&P 500 in the 2025 Plunge …

Fast-forward to this year, and finance stocks are being hit harder in the Iran War fallout, falling much further than the market since the start of the year.… Read more

Half of individual investors think the stock market will be lower six months from now. That’s a level of bearishness that intrigues contrarians like us!

The weekly AAII Sentiment Survey reports 49.8% bears. The historical average is just 31%:

Most investors, at any given time, think the stock market is heading higher. And at any given time, they are likely to be right! We all know that over long time periods the path for the market is up.

However, it does so in fits and starts. Bull markets stroll the stairs on the way up but bear moves take the elevator lower.… Read more

Fear is up, markets are down—and we contrarians know that times like these are when we go shopping.

Yes, stocks are wobbling. And yes, those hoped-for rate cuts have dried up. Even one may be a stretch this year. But as worrisome as the situation in the Middle East is, as investors, we need to look beyond it.

Truth is, in the long run, AI will cap wage growth (it already is). That will take a bite out of inflation, and rates, while boosting profits—and our dividends along with them.

Fading Short-Term Fears

At times like this, we come back to our “Dividend Magnet” plays: Stocks growing payouts fast—and pulling up their share prices as they do.… Read more

There’s an activist story shaking the CEF world right now. And no matter how it plays out, it could lead to shrinking discounts in these high-yielding funds.

We’re going to break down what’s happening today. Then I’m going to give you my favorite way to line yourself up for one-time events like this—an activist play, a takeover, a stock split—in your own portfolio.

Ackman/CP Was the Classic Activist “Unlock”

One of the most successful activist plays came when Bill Ackman installed veteran railroader Hunter Harrison at Canadian Pacific Railway—now Canadian Pacific Kansas City (CP). Five years later, the stock had more than doubled:

“Classic” Activist Move Ignited CP

But of course, not every activist move is this successful.… Read more