It’s a complaint I hear about closed-end funds all the time: they charge high fees but still underperform the market.

To be honest, this is true of some funds—but not all of them. In fact, some CEFs have racked up breathtaking returns far bigger than those of the market as a whole.

I’ve written about funds that have beaten the benchmark index before, such as the 14 funds that crush Vanguard’s passive funds while also offering superior dividend yields.

Then there are the actively managed Vanguard funds that beat Vanguard’s own passive funds and have done so for years. And of course, CEF Insider subscribers know of several closed-end funds that have beaten the S&P 500 for a decade or longer and are still outperforming.… Read more

Don’t take any dividends for granted today. Business disruption is accelerating as entire industries are being eaten alive.

Uber and Lyft? Killed cabs.

Amazon (AMZN)? It’s crushing retail, and starving their REIT landlords right before our very eyes.

And soon, these disruptors might team up to offer more same day deliveries – and make more rivals obsolete!

These types of disturbances have added a new layer to contrarian investing. In years past, it was as simple as buying stocks when they were out-of-favor and holding them until they became back in vogue. The “Dogs of the Dow” strategy, for example, usually beat the market by banking the highest blue chip dividend yields – a sign that the tide was ready to turn back in the dogs favor.… Read more

So far, 2017 is shaping up to be a great year for US stocks, but there are plenty of funds that are doing much better than your typical passive index fund.

In fact, some funds are so hot that they’ve already shot up over 30% in 2017 and show little sign of slowing down.

Two big trends are at work here, and each has far-reaching implications, not only for these funds but for the economy and stock market as a whole. Both are also extremely important trends that few investors truly understand.

What am I talking about? The US dollar’s weakness and the future of rising interest rates.… Read more

With great yield comes great risk.

A double-digit yielder is a pretty rare thing. Among the 7,000 or so stocks, exchange-traded funds and closed-end funds on the market, a relative handful (135) dole out 10% or more in annual income. And because sky-high yields are often the product of tanking share prices or excessive risk, many of them are traps – and only a select few are worth considering. Today, I’m going to show you a trio of stocks that yield more than 12% and have earned a closer examination.

But first, let me show you just how rough it is for the big-income club.… Read more

Warren Buffett doesn’t just beat the market – he makes a mockery of it. Since Buffett took control of Berkshire Hathaway back in the middle of 1965, the conglomerate has more than doubled the average annual gain of the S&P 500.

But here’s something you won’t hear anywhere else – Buffett doesn’t love all of his stocks equally. In fact, there are three dividend dogs that I bet he’d sell today if he could get away with it.

Let’s look at six of Buffett’s current income plays to separate his three buys from his three sells.

SELL – Verizon Communications (VZ)
Dividend Yield: 5%

Verizon Communications (VZ) is technically in the Buffett boat, but it’s not exactly a high-conviction pick anymore.… Read more

Mortgage rates reached a new milestone last week, and it’s one of the most important—and underreported—events in economic history.

For the first time ever, 30-year mortgage rates fell below 3.99%, on average. This is stunning for several reasons, but the most important is that the Federal Reserve is actively working to get mortgage rates higher. By increasing its Federal funds interest rate target, the Fed is hoping to make borrowing more expensive for everyone—companies, students and, yes, homebuyers.

But it’s not working.

And perhaps the biggest reason why it’s not working is that bond investors don’t think economic growth is going to strengthen, so they’re effectively daring the Fed to keep raising rates.… Read more

Today we’ll talk about how to value REIT (real estate investment trust) stocks. I’ll show you specifically how to lock in high current yields and leave yourself open to 250%+ price upside as well.

A big thanks to my astute subscribers who have written in asking for this lesson. FFO in particular has been a hot question – what exactly is it, anyway? Let’s start here, because it’s what drives REIT returns.

Funds From Operations (FFO) is the Cash Flow That Matters

FFO represents the amount of cash a REIT actually generates from its operations. It’s where our dividend originates – which makes it the building block for everything else in the REIT world.… Read more

A couple days ago, we showed you how to get $4,000 in monthly income from just 4 stocks.

A bonus? Each of these buys pays dividends every single month—precisely when your bills roll in.

That $4,000 number was no accident; it’s the average amount a 65- to 74-year-old couple in the United States spends every month, according to the Bureau of Labor Statistics. That makes this a great number to shoot for when you’re building your own retirement nest egg.

And today we’re going to go further, with 4 funds that give you an extra margin of safety while you’re pocketing the same amount of income—a nice $4k a month—in your golden years.… Read more

It used to be that finding a decent yield in the stock market was easy.

Just seven years ago, all you had to do was buy an ETF in a sector that got income hounds’ hearts racing, like the Utilities Select SPDR ETF (XLU) and lock in an easy 4.48% payout:

The “Good Old Days” Are Over for Utility Fans

But do the same today, and you’ll get just 3.1% for your trouble, no thanks to the merciless rise in stocks (and shriveling of yields) driven by a decade of near-zero interest rates.

And sure, a 3.1% payout may still sound okay.… Read more