Bond God’s Bond Warning: Should We Dump All Junk?

Brett Owens, Chief Investment Strategist
Updated: December 11, 2019

Brilliant bond manager Jeffrey Gundlach—aka the “bond god”—has decreed that it’s time to sell “junk” bonds. And he’s gone as far as to say that one-third of corporate bonds should probably be rated as junk.

Gundlach is one of the few “gurus” that we pay attention to. He called the subprime mortgage crisis ahead of time in 2007, an epic rally in US Treasuries earlier this decade, and President Trump’s election in early 2016 (when few gave the Republican candidate a chance.)

And his two closed-end funds (CEFs) are excellent long-term additions to a retirement portfolio. Over the last six years his two DoubleLine funds have roared to 72% and 54% total returns (with the majority of these gains coming as cash dividends:)

DoubleLine CEF’s Deliver: Distributions Plus Gains

But no guru is perfectly clairvoyant!… Read more

December Massacre Looming? Here’s What to Buy for 6.5% Dividends, 150% Upside

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

I’m going to hand you a dead-simple strategy that perfectly lines you up for dividends growing 150%—or more—plus safe current yields of 6.5% and higher.

The kicker? This quick 3-step plan positions you for fast 70% upside, too—especially when stocks dive.

And if stocks soar? You’ll very likely outrun the market, too!

What I’m going to show you really is the closest thing to a “heads you win, tails you win” scenario I’ve ever seen in investing.

More on this easy move (and how it drove a huge 70% gain for folks who pulled this same “trick” exactly one year ago) shortly.… Read more

These 118 Funds Are Cheaper Than Stocks (and pay an average 7%, too)

Michael Foster, Investment Strategist
Updated: December 9, 2019

“Buy low, sell high.” It’s the oldest investor slogan there is—and the deadliest one, too!

You simply cannot afford to give in to this “wisdom” today, even though it’s tempting. Now that we’ve seen a couple of days of weakness, you might be wondering if the recent all-time high was a sign to sell—and if all-time highs are often signs to sell. But do that now and you’ll certainly leave huge income—and upside—on the table.

Instead, now is the time to buy, especially closed-end funds (CEFs) paying dividends of 7% and up. I’ll give you an example of one of these high yielders—which drops its payout into your account monthly—further on.… Read more

5 Dividend Stocks That Drenched Investors in Cash This Year

Brett Owens, Chief Investment Strategist
Updated: December 9, 2019

Dividend growth is the secret to a comfortable retirement. Today, we’re going to discuss five stocks with big “payout momentum” heading into 2020. As dividends grow, stock prices, are likely to follow, so pay attention.

How do I know? The dividend-growth strategy in my Hidden Yields research service has resulted in 17%-plus annual returns since inception. Do the math, and that means subscribers have roughly doubled their money every four years.

Yet, for whatever reason, massive dividend increases throughout the year go virtually uncovered. The company puts out a press release, typically alongside earnings. Even the biggest payout hikes of the year get just one or two sentences in a writeup before reporters move on to sexier topics.… Read more

An “America First” CEF With a 7.7% Yield (and upside in 2020)

Michael Foster, Investment Strategist
Updated: December 5, 2019

Let’s dive straight into a trap I’ve seen many investors make in the past. And falling into this pitfall again today could cost you a 7.7% dividend in 2020, and considerable upside, too.

It involves China’s stock market, which gives all indications of being a bargain today. Too bad it’s anything but!

China Equities Get a Beatdown

Truth is, there do seem to be some screaming bargains in China-focused closed-end funds (CEFs) these days—like the Templeton Dragon Fund (TDF), which trades at a 12.1% discount to NAV. Or the Morgan Stanley China Fund (CAF), which sports the same 12.1% deal.

But many Americans have been lured into the China story in the past decade, when it looked like the Red Dragon would finally lurch ahead of the US … only to have it end in tears.… Read more

A Country Club Investing Secret for Safety, Income and Growth

Brett Owens, Chief Investment Strategist
Updated: December 4, 2019

Stocks or bonds? With the market off to an inauspicious December start, you may be thinking about shuffling some money from equities into income.

But rich guys and gals know better than to choose. They blend the best of both worlds to collect interest and enjoy share price upside! And we can too.

Their secret tickers? Convertible bonds. (Before the holidays you may be tempted to add some convertibles to your portfolio simply so that you can brag about them to friends and family!)

Convertible bonds, like the preferred shares we have discussed recently, pay regular interest. In this way, they act like bonds.… Read more

3 Steps to 6% Dividends, 813% Gains (Bull or Bear)

Brett Owens, Chief Investment Strategist
Updated: December 3, 2019

Imagine investing a million dollars and getting back … a pathetic $17,500 in income every year.

You don’t have to imagine—because that’s exactly what you’d get if you bought the typical S&P 500 stock today, which yields a sad 1.75%.

The worst part? That yield is a lot smaller than it was just 10 months ago, and down near 10-year lows as stock prices have ground higher:

Dividend Yields Scrape Bottom

No wonder dividends get no respect!

But I’ve got good news: that 1.75% doesn’t matter a bit to us. In fact, it’s a distraction from the real opportunity I want to show you: a dead-simple, 3-step shot at a much bigger payout.… Read more

My Prediction: This Will Ignite CEFs in 2020

Michael Foster, Investment Strategist
Updated: December 2, 2019

There’s one word that strikes utter terror into the hearts of many 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 reaping the biggest gains you can.

As you probably know, closed-end funds (CEFs) commonly use leverage to amp up their investment returns (and their dividends, which boast an average yield of around 7%). That’s fed their strong gains this year, as the Federal Reserve rolled out three consecutive rate cuts:

CEFs on a Tear

The CEF Insider index tracker has shown double-digit gains across the board, with equity CEFs slightly outperforming the S&P 500’s 26% year-to-date gains.… Read more

This “Crisis-Resistant” Fund Yields 6.7% (and crushed stocks)

Michael Foster, Investment Strategist
Updated: November 29, 2019

Today we’re going to dive into a corner of the market where 6%+ dividends are everywhere. What’s more, the funds behind these payouts have crushed the S&P 500 for decades—even during the financial crisis.

I’ll also introduce you to a specific fund that’s throwing off a 6.7% payout every month, and should be on any income investor’s radar. More on that shortly.

First, I’m talking about real estate—and in particular a group of closed-end funds (CEFs) that hold high-yielding real estate investment trusts (REITs), companies that own properties ranging from seniors’ homes to cell towers.

Yes, real estate—the sector at the heart of the subprime-mortgage crisis.… Read more

Beating Bezos: Dividends That Grow 155% to 163% with Amazon

Brett Owens, Chief Investment Strategist
Updated: November 27, 2019

If you flip on the financial news this Friday, or click over to your favorite stock website, you’re going to see headlines about retail stocks. After all, they can’t have a Black Friday without weighing in on immediate winners and losers!

In recent years, the retail sector has produced many more losers than winners. Amazon (AMZN) is blamed as the brick-and-mortar-killer, taking down not only unimaginative retailers but also the landlords that rent to them.

The carnage even extends to shopping center rentiers like Macerich (MAC). It promises a 10.2% yield, but this inflated payout is due to a stock that split “the wrong way”—halving in price without the increase in sales!… Read more