Can This 12.7%-Yielding REIT Portfolio Keep It Going?

Brett Owens, Chief Investment Strategist
Updated: February 24, 2023

Real estate is getting thumped, which means real estate investment trusts (REITs) are a bargain once again.

Finally! REIT yields are back to where they ought to be—(land)lording over the vanilla S&P 500:

We contrarians, of course, can do even better than the popular Vanguard Real Estate ETF (VNQ). While 3.5% isn’t bad, it pales in comparison to the 12.7% “headline yield” we’re about to discuss.

Why are REITs cheap again? Simple: The Fed.

As I mentioned months ago, higher interest rates mean not only higher costs of capital for REITs (and all other companies, for that matter), but also more competition for income as bond yields become increasingly competitive.… Read more

Make This Easy Mistake and You’ll Miss the Best 7%+ Dividends

Michael Foster, Investment Strategist
Updated: February 23, 2023

When it comes to closed-end funds (or any investment, for that matter), it pays to look for things most people misunderstand. Because these (seemingly) tiny investor oversights and errors can give us keen-eyed contrarians our best buying opportunities.

And when it comes to CEFs, there’s one all-too-common mistake I see folks make time and time again, particularly those who are new to these high-yielding funds. To see what I’m getting at, let’s zero in on a CEF called the Columbia Seligman Premium Technology Growth Fund (STK).

STK Romps to a Triple-Digit Return

STK’s portfolio mainly consists of large-cap tech stocks: Apple (AAPL), chipmaker Broadcom (AVGO) and Microsoft (MSFT) are among its top holdings.… Read more

This Dividend Stock Pays 5.7%, Can Return Another 79%

Brett Owens, Chief Investment Strategist
Updated: February 22, 2023

These 5.7% and 8.9% dividend payers are ready to rally.

Whether they pop this year or next, we shall see. It’s a matter of when rather than if—which is what we gladly sign up for as income investors.

The broader stock market appears to be on a near-term sugar high. Crypto is going (a bit) crazy and meme stocks (of all things) are back. Count us careful contrarians cautious!

We instead turn our attention to natural gas—a market that has already corrected.

Remember when “natty” prices were supposed to go to the moon this winter? We feared that Europe, without Russian gas imports, would be in for a long cold season.… Read more

This “Hack” Lets Us Tap ChatGPT for 6% Dividends

Brett Owens, Chief Investment Strategist
Updated: February 21, 2023

Let’s go ahead and grab a slice of AI’s furious growth and get ourselves a nice 6% dividend (paid monthly), too.

Better still, we’re going to get in at an unheard-of 13% discount! Plus we’re going to do it safely—not tying up our cash in profitless tech or miserly blue chips dribbling out paltry 1% to 3% dividends.

Like Buying Microsoft, But With a 6% Dividend (Paid Monthly)

When someone mentions AI, the first stock that that likely pops to mind is Microsoft (MSFT) and its flashy move to integrate the ChatGPT AI into its Bing search engine.

That came straight from the company’s $10-billion investment in OpenAI, ChatGPT’s developer—a move that paid off: Microsoft has its search-engine game back after Bing spent the last decade in the dumpster with ’90s throwbacks like AskJeeves and Yahoo.… Read more

These 9%+ Dividends Could Set You “Financially Free” Tomorrow

Michael Foster, Investment Strategist
Updated: February 20, 2023

When I was a kid, I thought everyone on TV was rich. I know better now, of course, but it still strikes me when I hear stories of celebrities going broke, struggling to earn a living or taking on projects just because they desperately need to pay off some kind of debt.

It just goes to show that being famous isn’t enough to have true financial freedom.

That’s why I was intrigued by a recent interview with That ’70s Show star Ashton Kutcher, who has built a name for himself in the VC world by investing in tech startups. Kutcher’s string of successes is impressive: he was an early investor in Uber, Airbnb and Spotify, for example.… Read more

Colossal Cash Machines: 5 CEF Yields of 10% or More

Brett Owens, Chief Investment Strategist
Updated: February 17, 2023

Bull or bear? Who cares when we can collect dividends between 10.1% and 11.8%.

That’s not a typo. The S&P 500 pays 1.7%. The 10-year Treasury yields two points more at 3.7%.

That’s better—but it ain’t 11.8%!

The same million-dollar retirement portfolio can either generate $17,000, $37,000 or $118,000 per year. Tough choice!

And better yet, the double-digit dividends I mentioned aren’t penny stocks. We’re talking about diversified funds, with dozens of holdings, managed by skilled advisors that often have decades of experience at the helm.

How Do You Spell “Massive Income”? C-E-F.

A couple of weeks ago, we discussed CEFs versus ETFs:

“If I can give you just one piece of advice to start 2023, it’s this: do not trust your dividend income to ETFs!”

Read more

Why I’m Calling for Double-Digit Gains (and 9%+ Dividends) From CEFs This Year

Michael Foster, Investment Strategist
Updated: February 16, 2023

From what I can see, this year is setting up to be another 2016—and that’s likely to hand us a buying opportunity in our favorite high-yield investments: closed-end funds (CEFs).

Here’s what I mean: after the market’s fast run higher in January, things have stalled out a bit. After the year we put in last year, this means we’re still left with some decent discounts to net asset value (NAV) on CEFs, as well as high yields (as CEF veterans know, payouts of 7% and up are common in the space, and most CEFs pay dividends monthly, too).

Right now, for example, our CEF Insider portfolio boasts a number of double-digit yields, reaching up to 12.3%.… Read more

An 8.5% Dividend and 12.7% Payout Walk into a Cantina…

Brett Owens, Chief Investment Strategist
Updated: February 15, 2023

There is another.


The Jedi Master had last week’s 8.4% dividend in mind, no doubt. David Friar’s Nuveen Nasdaq 100 Dynamic Overwrite Fund (QQQX) is an elite 8%+ payer worthy of a discussion.

But yes, Yoda, there is another. A rival ETF, also based on “the Qs”—the Nasdaq 100. The Force must be strong with this one—it yields 12.7%.

Is this for real? Or a Hollywood fairy-tale?

Well, let’s go back to David, QQQX’s manager. His elite 8%+ yield is no joke either. He’s doing something that many of us have dabbled with. He buys tech stocks and sells (“writes”) covered calls on his positions.… Read more

Let’s Buy Oil’s Snubbed Sibling Now (for 5.6% Dividends and Upside)

Brett Owens, Chief Investment Strategist
Updated: February 15, 2023

Natural gas prices have been completely washed out—and that’s set up some sweet dividend opportunities for us contrarians to tap into.

(These opportunities aren’t just in gas, by the way: China’s reopening and the Biden administration’s need to refill the Strategic Petroleum Reserve—which it’s been using to keep a lid on oil prices—will also lift the goo. We discussed 3 stocks to play crude’s likely rebound on February 4.)

To get a sense of the opportunity setting up for us here, let’s look ahead to next winter, shall we? It’s tough to see how gas can stay low with a setup like this:

  • Russian gas will still be a no-go—leading to another dash to boost European supplies over the summer, especially with the current winter looking like it’ll end on a cold snap, draining off the surplus gas the continent is sitting on now.
Read more

This Fund Profits From China Fears (and Yields 9.5%)

Michael Foster, Investment Strategist
Updated: February 13, 2023

Recent headlines have spurred some readers to write in about China—specifically what rising tensions between Beijing and Washington (no thanks to the former’s ham-fisted spy-balloon fiasco) might mean for their portfolios.

First up, we always need to bear in mind that stocks—and in particular my favorite way to hold stocks (through a high-yielding closed-end fund, or CEF)—really are a long-term investment. I know that sounds obvious, but it can be easy to forget when alarming headlines—a war or a pandemic, say—flash across our screens.

In other words, global chaos is really nothing new for stocks. The difference today is that we’re more connected than ever, so every move made by one of America’s adversaries is emphasized all the more.… Read more