Real estate investment trusts (REITs) are retirement makers right now. Many are paying dividends that are three or even four times the market average.

Plus, these landlords are cheap. They are trading at multiples of cash flow that make them bargains compared with the S&P 500.

Why are these deals available? Rising rates.

In the near term, higher rates mean higher costs of capital for REITs, and more competition for income (as bond yields rise, too). That has knocked real estate stocks down—which is great news for us dividend investors, because it means they pay more.

Today, we’re going to look at a surprising three-pack of REITs that yield 3x to 4x the broader stock market and are outrunning not just the sector over the past few months, but the much better-performing S&P 500.… Read more

Every Thanksgiving, I get together with my in-laws. They’re nice enough people … but if I’m being honest, some of them aren’t particularly interesting.

Conversations are invariably limited to just two or three topics. In fact, some people just have two or three particular stories they trot out.

I just sit there and nurse my second or third glass of wine, and try to look interested.

The stock market is kind of like that in 2022. There simply aren’t a lot of things to say about the stock market – rising rates and inflation have gutted Big Tech and other growth-oriented names, while commodity stocks and defensive plays reign supreme.… Read more

Let’s use this November rally to “front-run” even bigger gains in 2023. Our target buys: closed-end funds (CEFs) throwing off high yields and trading at double-digit discounts.

We’re keen to move now because, with a 20%+ loss this year, stocks (and the CEFs that hold them) are way oversold. And with the market’s tendency to rise into year-end (the much-loved Santa Claus rally), now is a great time to buy.

One smart option here is a CEF called the General American Investors Company (GAM). GAM is one of the most reliable CEFs there is, with roots stretching back to 1927.… Read more

One week ago, money-printer-turned-inflation-hawk Jay Powell told the world he was going to keep hiking interest rates. And more than he thought his Federal Reserve needed just two months ago.

Yes, even higher interest rates. Obviously more bad news for bonds, right?

It depends. Let’s explore the second level take, because Jay’s outlook is actually bullish for a select slice of fixed income.

Our inspiration, as always, is renowned value investor Howard Marks, chief of Oaktree Capital Group, with $164 billion under management. Marks’ writing has won acclaim from legendary peers such as Joel Greenblatt, Jeremy Grantham, Seth Klarman and even Warren Buffett.… Read more

We’ve finally got something (two things, in fact!) working for us dividend investors in this dumpster-fire market:

• The midterm elections, which always bring a buying opportunity (as we’ll see below) and …

• The calendar, as stocks post most of their gains in the six months starting November 1.

The last time this “double-profit” setup appeared, after the 2018 midterms, we tapped it for a 57% return. That win was driven by a payout that grew quarterly.

Now we’ve got a chance to pull off the same feat again—with the same ticker we used then, too! This kind of opportunity is very rare indeed—only appearing once every four years.… Read more

Jerome Powell’s latest trip before the microphone has opened up a surprising opportunity for us dividend investors.

I have three funds for you that are deeply discounted in the wake of the Fed chair’s press conference last week, following the release of the latest rate decision. Buying this trio now also sets you up for dividends ranging from 9.7% to a stunning 12.5%.

Before we get to them, let’s set the stage by zeroing in on exactly what happened last Wednesday, from the time the Fed’s decision and seemingly dovish statement were released until after Powell was finished speaking at the following press conference.… Read more

As contrarian income seekers we buy when yields are high and prices are low. Today, we’re going to explore a three-pack of dividend funds that pays 8.5%.

This is “retire in style” income. We put a million dollars in these plays and get paid $85,000 per year. Plus, we keep our principal intact.

And wait, there’s more. The cheapest of these three funds is currently trading for just 89 cents on the dollar. Yes, that’s an 11% discount to the value of its underlying holdings.

Too good to be true? Or bottom-fishing bargain? Let’s explore my preferred dividend strategy and these three dividend machines.… Read more

If you’re serious about investing, you have to develop a head for math. Hard numbers not only keep you grounded, but sometimes offer the only way to make sense of the weird ways that Wall Street works.

Consider that odd fact I shared recently about how a 50% loss followed by a 50% gain actually leaves you 25% in the hole. Strange, but true!

And here’s another fun fact: In a room of just 23 people there’s a 50/50 chance that two people share the same birthday. In a room of 40 people, the chance is more than 90%… And at 55, the chance is 99%.… Read more

Today’s market is ideal for us to grab stock-focused closed-end funds (CEFs) paying outsized 10%+ dividends. Here are three (of many!) reasons why:

• CEFs’ dividend yields are through the roof: As I just mentioned, many equity CEFs pay double-digit yields today. And as members of my CEF Insider service know, most of these sturdy income plays pay dividends monthly.
  

• Deep discounts are everywhere: Of the 447 or so CEFs out there, the average fund trades at a 9.6% discount to net asset value (NAV). That’s near levels we saw in the darkest days of the pandemic! It’s totally overdone, which is why …

• Equity-CEF discounts have upward momentum.

$500K can be enough money to retire on. Even as early as age 50!

The trick is to convert the pile of cash into cash flow that can pay the bills. I’m talking about $35,000 to $40,000 per year or more in dividend income on that nest egg, thanks to 7% and 8% yields.

These are passive payouts that show up every quarter or, better yet, every month. Meanwhile, we keep that $500K nest egg intact. Or, better yet, grind that principal higher steadily and safely.

Got more in your retirement account? Cool—more monthly dividend income for you!

We’ll talk specific stocks, funds and yields in a moment.… Read more