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

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

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

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

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

I run into far too many investors who think the best way to build their bond income is to buy through an ETF.

It makes sense. After all, buying corporate bonds “direct” means playing in the murky over-the-counter market, or forking over a hefty brokerage commission.

What’s more, the media—with help from ETF providers’ marketing departments—has most folks believing an “automated” ETF always beats a human manager.

So it follows that more people are buying ETFs like the Bloomberg Barclays SPDR High-Yield Bond ETF (JNK). With one click, you’re getting a portfolio of corporate bonds throwing off a nice 5.6% dividend yield—and charging just 0.4% of assets.… Read more

Members of my CEF Insider service often tell me they’d love to know a lot more about the people at the helm of closed-end funds—the good, the bad and the ugly.

It makes sense: after all, when you buy a CEF, these folks play a huge role in whether you notch a big gain (and income stream) or, well, not so much.

An Insider’s View

As one of the few analysts who focuses solely on CEFs—especially smaller CEFs, with market caps of $1 billion or less—I’ve had several conversations with managers at CEF companies from across the market.

A common theme?… Read more

Some of the stock market’s best dividend stocks are hiding in plain sight. But today, I’m going to introduce you to four long, longtime dividend-growing powerhouses that yield up to 6.6%.

Wall Street has naturally slept on these companies simply because they’re not easily covered mega-caps like Coca-Cola (KO). That’s too bad because in many cases, their returns have shredded many blue chips with similar dividend histories.

Just consider this “mystery” company:

This global chemical firm was founded in 1932, and currently boasts 18 manufacturing locations across the world. Like many industrial companies, it’s boring but makes our everyday lives better.… Read more

I’ve been getting worried emails from investors lately, and most are about one of two big fears:

1. That a 2008-style market collapse and recession are on our doorstep, and …
2. America’s spiraling debt will drive it into bankruptcy.

So today I’m going to give you my take on both.

Investor Worry No. 1: Is a Recession Looming?

The first question: are we headed for a recession? This one nearly broke my inbox during the late 2018 pullback, when I said that drop was a timely buying opportunity.

Not only has growth remained above 2% this year, but low unemployment, rising sales for US companies and higher incomes have all continued, without triggering inflation.… Read more

This week we’re going to get a bit greedy (responsibly, of course) and discuss fast double-digit gains from safe dividend stocks. Many of you probably sat back and enjoyed Arbor Realty Trust’s (ABR) “parabolic” move to the upside in recent weeks. Since we purchased Arbor for our Contrarian Income Report portfolio in July 2018, we’ve enjoyed epic 60% total returns!

This Tree Might Grow to the Sky

We paid $10.85 per share and have already collected $1.51 in dividends, about 14% of our initial capital—in 16 months!

Payouts alone have provided a solid return, but it’s been the price gains that have really made this stock a winner.… Read more