3 “Tariff-Proof” CEFs You Can Buy Now (7% dividends and upside)

Michael Foster, Investment Strategist
Updated: May 20, 2019

You’re no doubt wondering if there’s anywhere you can invest and still get a decent return—without wincing every time you open your brokerage account.

Good news: there is just such a place. And today I’m going to show it to you—along with three specific “crash-resistant” funds yielding up to 7.1%.

The magical place I’m talking about is an often-ignored corner of the market called closed-end funds (CEFs).

Steady Dividends for Rocky Markets

There’s a weird twist that lets CEFs pay us dividends of 7.1% (and a lot higher) without exposing us to the risk of a surprise payout cut.

It comes down to the fact that several CEFs’ prices (on the open market) trade at a discount to the per-share net asset value (or the liquidation value of their portfolios).… Read more

Weekly Market Summary: Stocks Attempt Recovery as Volatility Persists

David Peltier, Senior Investment Analyst
Updated: May 18, 2019

The ongoing trade dispute with China frightened U.S. investors again on Monday, sending the Dow Jones Industrial Average down 617 points. However, markets were able to claw back those losses over the next three trading sessions.

While no resolution has been made between the two superpowers, the war of words has since quieted down. In addition, investors cheered solid earnings reports from blue-chips, like Cisco Systems (CSCO) and Wal-Mart (WMT).

Calculating the Tariff Cost

Still, President Trump has vowed to consider tariffs on another $300 billion of Chinese goods next month, if the two countries don’t agree to a truce by the G20 Summit in Japan.… Read more

4 Tariff-Proof Dividend Stocks Poised to Double

Brett Owens, Chief Investment Strategist
Updated: May 17, 2019

Is it time to tariff-proof our dividends (again)?

A couple months into the U.S.-China trade tensions, I said the key was to buy dividend-growth stocks: “Payout growth like that is proven to throw an updraft under share prices when the markets get skittish due to any kind of worry: trade spats, terrorist attacks, wars—you name it.”

Then I highlighted a trio of dividend growers–Life Storage (LSI), Ecolab (ECL) and Carnival Corp. (CCL)–that looked primed to swim upstream. Unpredictable fuel costs helped weigh on our Carnival pick, but even then, the combined total return of all three selections nearly doubled the S&P 500’s return.… Read more

Alert: This Life-Changing 7% Dividend Is Vanishing Fast

Michael Foster, Investment Strategist
Updated: May 16, 2019

If you’re like, well, everybody, you’ve been mulling these three questions lately:

Is this “tariff tantrum” the end of the bull market? Is it time to sell? Or buy more?

I’ll deal with the first question in a second. Meantime, let’s start with the second one: no, it is not time to sell. Because after all, we need to stay invested to keep our dividend checks rolling in.

What about buying?

Yes, it’s still a great time to buy—especially in one corner of the market where 6%+ dividends are everywhere: closed-end funds (CEFs).

In a moment, I’ll reveal a CEF whose yield recently soared to nearly 7%!… Read more

How to Retire on 7.2% “Tariff-Proof” Dividends

Brett Owens, Chief Investment Strategist
Updated: May 15, 2019

Is it time to tariff-proof our dividends (again)?

Let’s look at our favorite payers with respect to a potential trade war. Could tariffs derail the 7.2% gravy train I’ve put together for you? Let’s rewind to the last time protectionism flared in America, 17 years ago, to see how some of our stocks and funds performed during the last trade tiff.

On March 20, 2002, President George W. Bush whacked steel imports with tariffs ranging from 8% to 20%. The duties stayed in effect until December 4, 2003. The European Union was unamused and hit back with tariffs of its own.… Read more

Yes, You Can Retire on $490K (or less). Here’s How.

Brett Owens, Chief Investment Strategist
Updated: May 14, 2019

Is your nest egg way smaller than a million bucks? Do you worry you’ll never be able to retire?

I know: who doesn’t have this fear, right? Especially in today’s twitchy market.

Good news: you absolutely can leave the grind behind. And probably sooner than you think.

You can do it on far less than a million, too—just $490K (and maybe less than that, depending on your circumstances). The best part: you won’t have to sell a single stock in retirement.

Choose Your Own (Retirement) Adventure

Today I’m going to show you two routes to our $490K retirement: if you’re near (or already in) your golden years, you’ll want option 1: a collection of steady dividend payers yielding 7% and up.… Read more

3 Big Dividends (up to 6.9%) That Thrive in any Market

Michael Foster, Investment Strategist
Updated: May 13, 2019

If this wobbly market has you parked on the sidelines, worrying the big 2019 rally might evaporate at any second, I have good news: this is still a great time to buy.

But you need to buy carefully if we want to maximize our upside (and protect ourselves from a 2008-style meltdown).

The solution?

Top-quality closed-end funds (CEFs) handing you dividend cash that more than doubles (and in many cases more than triples) what your typical S&P 500 stock pays. I’ll give you three solid CEF picks (selling at fire-sale prices up to 23% off) at the end of this article.… Read more

Weekly Market Summary: Trade Dispute Sparks Return of Volatility

David Peltier, Senior Investment Analyst
Updated: May 11, 2019

Needless to say, this week got off to a bad start for Bulls, before Monday morning even rolled around.

Selling pressure started over the weekend, when most investors probably weren’t even thinking about stocks. President Trump fired off a tweet on Sunday, suggesting the U.S. would raise tariffs on $200 billion Chinese goods from 10% to 25% on Friday and consider taxing another $325 billion of items.

A war of words ensued on both sides and the news kicked off a roller coaster ride in the global markets. The U.S. followed through with its threats on Friday and the Chinese have promised retaliatory trade actions.… Read more

Preferred Stocks: 8 Easy Ways to 6%-7% Yields

Brett Owens, Chief Investment Strategist
Updated: May 10, 2019

As investors near retirement, they tend to favor bonds, which provide income and less drama than stocks. However, less drama means less potential upside. With retirees living longer than ever before—which means much more time for inflation to eat away at your nest egg’s purchasing power—it’s important to not go too conservative too early in life. And fortunately, today even 65 or 70 may be too early!

One suggested solution for our long life expectancy “problem” is to stay with stocks longer. But stocks can go down as well as up, and a big pullback can inflict permanent damage on a portfolio.… Read more

Forget $1 Million: Here’s How to Retire on a Lot Less

Michael Foster, Investment Strategist
Updated: May 9, 2019

You’ve no doubt heard the “wisdom” that you’ll need a million bucks to have any hope of retiring.

If you’re like most folks, you’ve probably wondered how you’ll manage to save such a huge stash. Maybe you’ve given up and resigned yourself to working till you’re 100.

I can’t blame you. Because with the rising cost of everything these days, finding an extra seven figures during your working life seems like a massive mountain to climb.

This is why I’m writing you today. I’m going to show you two things:

  1. A plan for saving a million bucks, if you want to, and …
  2. Why you don’t need anywhere near a million dollars in the first place (thanks to three 6.8%-yielding funds that let you clock out on hundreds of thousands of dollars less, without selling a single stock in retirement, to boot!)

How to Build a Million-Dollar Nest Egg

Let’s start with the numbers behind the million-dollar figure that Wall Street loves to tell us is the bare minimum for a decent retirement.… Read more