Our new income-investing expert declares…
“If You Ignore These
7.6%+ Payouts Now,
You’ll Miss Out on
In this special report, you’ll discover:
- The most reliable profit indicator you’ll ever find in investing. Buy when it flashes and get ready for quick double-digit gains!
- The ignored group of funds set to hand you a 30%+ return in the next 12 months—with a big chunk of that in cash!
- 4 incredible fund picks with safe yields nearly 4 times the S&P 500 average!
Dear Fellow Investor,
I’ll get straight to the point.
I’ve found an easy way for you to bag double-digit price gains—year in and year out—in your income portfolio.
The best part?
You won’t have to sacrifice a single cent of dividend income to do it.
In fact, you’ll be pocketing payouts more than 3 times greater than what the average S&P 500 investor is scraping by on today!
I’m talking safe 7.6% dividend payouts (and in many cases far higher than that). I’m not making that 7.6% figure up. It’s the average payout on 4 ignored investments I’ll show you in a moment.
Plus this weird group of funds delivers predictable, market-crushing capital gains too!
How does easy 20%+ price upside in the next 12 months sound?
Add that to their outsized dividend payouts, and you could easily be sitting on a 30% total return by this time next year!
Here’s the funny thing: You won’t hear a peep about these incredible funds from Wall Street or the mainstream media.
But some of the world’s richest people know them very well.
Bill Gates has been quietly profiting from them for years. So have Jeffrey Gundlach—the legendary Bond God—and famed investor Bill Ackman, too.
And today I’m going to give you a one-time chance to profit right alongside these heavyweights of the investment world.
Clobber the Market. Retire Rich.
One of these funds handed investors a 32% gain (including dividends) in just 11 months—easily doubling the market’s return.
And folks “in the know” had a dead-giveaway signal that it was about to make this stunning upward move.
This fund is called the PIMCO Dynamic Mortgage & Income Fund (PCI). It’s part of a powerful (but little-known) group of funds called closed-end funds.
If you haven’t heard of CEFs, don’t worry. You’re far from alone. There are only 600 or so of these low-key income generators out there—so few that most Wall Street analysts don’t even bother to cover them.
That’s great for us, because CEFs routinely hand investors safe 7% to 12% yields and fast double-digit gains to go along with them!
And since they get so little ink from journalists and the big shots on Wall Street, we can pick up these cash machines at incredible discounts, as I’ll show you in just a moment.
So if you’re at or near retirement—or just looking to generate an extra income stream to pay the bills or bulk up your savings, these unsung funds are the answer.
And big gains and high yields aren’t even the best part … because you can use that dead-giveaway signal I mentioned earlier—the same one our lucky PCI investors used—to actually forecast when these funds will make their next upward move.
Let me explain.
The profit alarm I’m talking about is a crucial figure called the discount to net asset value (NAV).
We don’t have to get into too much detail here. Suffice it to say, it’s the difference between the fund’s market price and value of its portfolio. It’s easy to find on just about any fund screener.
Here’s the key thing to know: these discounts are basically free money!
Let’s go back to PCI.
Back on May 6, 2016, it was trading at a 10% discount to NAV.
So buying then meant you were getting $1 of the fund’s assets for just $0.90!
Absurd discounts like this don’t exist anywhere else in the investing world. But they happen all the time with CEFs.
There’s more, though.
Because these discounts are hands-down the clearest contrarian indicators I’ve ever seen—and a bombproof reliable “early warning system” of big gains ahead.
You see, the more investors dislike a fund’s strategy, the greater the discount they’re likely to demand.
The irony? Most people spend their time chasing recent performance, which means they’re more likely to sell a fund at the very moment it’s due for a turnaround.
So when a fund’s discount drops below its historical average, that’s the time to put it on your watch list.
And when it gets unusually wide—say double (or more) its historical pattern, that’s the time to strike.
When the herd realizes what it’s missed and piles back in, you’ll already be waiting with an early position. Then you can sit back and watch as that discount window slams shut—squeezing the fund’s price to an almost guaranteed double-digit gain.
And don’t forget, CEFs are income vehicles, so we’ll collect their fat dividends the whole time!
This is exactly what happened with PCI: over the following 11 months, its discount was whittled from 10% all the way down to 2.1%—driving the fund to that mammoth gain I showed you earlier!
Now I don’t recommend running out and buying this fund now. With its 32% gain and narrow discount (which is above its historical average of 6.2%), it’s tapped out.
But that’s not the case with the unloved 7.6% average payers I’ll show you in a moment.
“Profit Alarm” Goes Off, Buy, Repeat
Still not convinced?
Here’s another example:
On December 23, I recommended the Tekla Healthcare Investors Fund (HQH) to readers of our ContrarianOutlook.com website.
At the time, it boasted a fat 9.4% dividend yield and traded at a 6.5% discount to NAV.
Here’s what’s happened to its discount since:
A little more than four months later, the discount swung to a premium to NAV—and we rode HQH to a quick 19.8% in gains and dividends, more than tripling the S&P 500!
As I said, seemingly impossible discounts like this happen all the time in the CEF universe.
By now I’m sure you’re seeing the pattern here.
- Wait for the discount to NAV to close.
It really is that simple.
The Last True Bargains
My name is Michael Foster, and I’m the only analyst in the world who is 100% devoted to CEFs with market caps under $1 billion.
Why less than $1 billion?
Because this is where the biggest discounts in the CEF universe live. And it’s also a pond that’s strictly off limits to the big guys, so we have these juicy income—and capital gain—opportunities all to ourselves!
Think about it: if a big investment house with, say, a $20-billion market cap, bought every single share of a CEF with a $500-million market cap and that CEF doubled, it would only boost the buyer’s market cap by a measly 2.6%.
It’s just not worth the hassle!
But you and I don’t have that problem.
I can’t wait to tell you all about these under-the-radar cash machines—the same ones I used to dump my grinding 80-hour work week as a research professor, boost my net worth and build an income stream that easily covers my bills.
That’s the kind of punch these high-yield funds pack. And now it’s time for me to show you the 4 CEFs that can do the same for you, starting with…
Bargain CEF Play #1: A 7.8% Payout
and Easy 20% Upside
My top pick not only survived the financial crisis, it rebounded far more quickly than the market and has gone on to hand investors far bigger gains since.
And it did it by investing in … real estate.
Though you’d never know it by looking at this fund’s market price, which is actually 4% below where it was when it first went public in the 1990s.
Most investors see a chart like that and think it looks awful.
But they’re looking at the wrong chart.
Remember, CEFs are income vehicles, so you need to focus on total return, not price alone, to get the full picture. And when you add its fat dividend payout (which yields a tidy 7.8% today) back in, you get a chart that looks like this:
Think about that for a moment.
This fund not only provided a higher return than the stock market, even when you factor in the Great Recession and the subprime mortgage crisis, but it did it while paying a rock-solid 7%+ dividend the whole time.
Plus you also get a current yield that’s more than triple the S&P 500’s payout, the ability to withstand the greatest financial crisis in three generations and access to top-flight management that cuts your risk even further.
If this isn’t a fund worth paying a premium for, I don’t know what is.
But thanks to the wacky mispricings in CEF land, this one’s trading at an 8.0% discount to NAV—far lower than its long-term historical average of 2.7%.
That’s not all—once the herd catches on to what it’s missing, this fund could easily blow past that historical average and well into premium territory.
How do I know? Because it’s happened many times in the past—and when it does again, we’ll easily be sitting on a 20% gain on top of this fund’s juicy 7.8% dividend payout.
Bargain CEF Play #2: This 7.4% Payer
Loves Rising Interest Rates!
My second pick is trading at one of the silliest discounts of any CEF as I write this: 11.3%! That’s nearly double its regular 5.6% markdown.
It’s all because of an over-hyped headline-driven fear mainstream investors just can’t shake.
In this case, it has to do with my No. 2 pick’s main investment: junk bonds.
You see, the herd is living in the past, writing off these bonds because the Federal Reserve’s low-interest-rate environment caused their yields (and the yields on pretty well everything) to shrink.
That’s despite its long history of beating the market:
But here’s the truth: Times have changed. The Fed has already raised interest rates twice and plans many more hikes in the next two years.
And what do junk bonds do when rates rise: they pay higher dividends!
Now if you hear “junk bonds” and think “high risk,” you’re not alone. But bear with me, because these investments are far safer than most people realize.
Fact is, the default rate on junk bonds was just 4.2% at the end of February, and it’s falling—fast. By the end of May, Fitch sees it dropping below 3% before sliding to the low 2% range by summer.
Because we’re leaving the oil crash in the dust and the economy is finally coming on strong, driving defaults way down.
And here’s the kicker: management has skin in the game—something that’s all too rare in the CEF universe.
This fund’s management team includes a Wall Street vet who’s been with the fund-management company for 20 years and is sitting on 20,622 units of my No. 2 pick, with a value of around $250,000!
He works closely with a team of 3 other portfolio managers, bringing their total experience to 112 years.
There’s no reason to hold off on this one. Let’s join—and profit alongside—this whip-smart pro at a silly discount now.
Bargain CEF Play #3: Turning Apple’s
1.6% Yield Into a 7.4% Cash Gusher!
My third pick holds some of the biggest names in tech—Apple and Google among them—and turns their low (or in Google’s case, no) dividend yields into an astonishing 7.4% yield.
And as I write, it trades at an astonishing 9.7% discount, to boot!
It uses a clever “heads-you-win-tails-you-win” strategy to juice these tech titans’ payouts and hand you that safe 7.4% income stream: it sells call options (or the right to buy a stock if it rises above a certain price) on some of the rock-steady names in its portfolio.
We don’t have to get into a lesson on option selling here, but the upshot is this: if my No. 3 pick “wins” this bet, it simply keeps the upfront cash call-option buyers hand it in return for this right.
And that cash goes out to you in the form of dividends.
Most of the time, this is where the story ends.
But if the fund happens to “lose,” it simply sells the stock to the option buyer, usually at a nice profit. And that cash also goes out to you in the form of dividends, too!
This is an extremely lucrative, low-risk way to generate cash from a stock portfolio, and it gives you some nice downside protection as a side bonus.
But it’s not the only reason why I like this fund.
It’s also easily out-earning its dividend, so this is one of the safest payouts you’ll find in the CEF space. Plus it’s well diversified across the world, giving us yet another margin of safety.
The topper: its ridiculous 9.7% discount (which is much wider than its historic 6.8%) means our upside is built in! Let’s grab this one and start pocketing its hefty payout while we’re waiting.
Bargain CEF Play #4: A Global Titan
With a 7.8% Yield
My fourth pick uses the same profitable strategy as No. 3, but it gives us yet another layer of safety because it’s dialed into even larger companies spread out over even more countries.
It also trades at a similarly ridiculous markdown: 9.6% as I write.
But it’s got a hidden kicker that’s poised to send it soaring: the weakening greenback.
That’s because many of its holdings report in US funds but have operations spread across the globe. That’s been a drag on their profits—and share prices—in the past few years.
But the fact is, those days are ending.
We’re already starting to see the weaker greenback start to pad companies’ bottom lines, yet the herd has been weirdly slow to respond (though they’re starting to catch on, so we need to act fast here).
Check out the performance of my fourth pick compared to the US dollar:
As you can see, the greenback has been in decline for a while, while my pick has been edging higher.
And there is even more upside in it, thanks to that fall in the dollar.
The reason comes back to its ridiculous discount, which is much wider than its historical 6.8% markdown. That shows foolish investors haven’t fully picked up on just how much value the weaker greenback will add to my No. 4 pick.
Add in its juicy 7.8% yield, and you’ll easily be sitting on a 30% total return in just 12 months as this “locked in” rise in corporate earnings drives this fund’s market price through the roof!
To give you the full story on all these picks and everything you need to know to reap big, safe profits from CEFs, I’ve prepared 3 in-depth guides, starting with:
Special Report #1 (a $99 value):
My first report, “4 Great CEFs to Buy Now: 7.5% Yields and 20% Upside Ahead,” gives you all the profitable details on my top 4 CEF picks.
- Names, ticker symbols, buy-under prices and all the nitty-gritty you need to know to buy in.
- Full details on how each fund makes its money, what’s behind its unusual discount and why that gap is set to slam shut, propelling us to 20%+ price gains—and more—in the next 12 months.
- In-depth analysis of the people behind each of these funds. This is something too many investors ignore but is absolutely vital for safe CEF profits. Since CEFs are all I cover, I spend most of my day studying the moves of these investment pros. And yes, that includes personally phoning them up and putting them on the hot seat.
- And much more!
Your 3-part CEF library also includes…
Special Report #2 (a $99 value):
Your source for all things CEF, “The Ultimate Guide to CEFs” gives you everything you need to know to reap maximum profit from your own CEF picks, including:
- How CEFs can pay outsized dividend yields—and a simple way to make sure your fund’s payout is sustainable.
- The relationship between CEF performance and management fees (it’s not what you think!)
- The simple trick CEF managers regularly use to keep their funds’ discounts from getting too wide (this unique “insurance” simply doesn’t exist in stocks, bonds or ETFs).
- The surprising reason why the liquidation of a CEF is actually good news for investors.
Special Report #3 (a $99 value):
The third guide is called “5 Toxic CEFs That Could Ruin Your Retirement.”
These 5 funds look attractive but contain hidden traps waiting to snap on the unwary, including:
- Outrageously high fees hidden deep in the fine print (in one case, management is snagging an obscene 26.6% of the fund’s investment income for itself!).
- Way too much leverage: one of these funds uses borrowed cash to buy other CEFs that are propped up by borrowed cash themselves! When the next downturn hits, this one is hardwired to double up the market’s losses—or worse!
- Dangerous dividends, like the 14% one fund pays. Too bad that payout is built on risky, illiquid derivatives. If you want to rack up steep losses fast, this is the fund to buy!
How to Get Your 3 Special Reports FREE
To get your copy of “4 Great CEFs to Buy Now,” “The Ultimate Guide to CEFs” and “5 Toxic CEFs That Could Ruin Your Retirement,” I simply ask that you take a risk-free trial to the new research service I mentioned earlier.
It’s called CEF Insider, and I’ve designed it specifically for investors who aren’t afraid of snagging double-digit price gains like the ones I’ve showed you throughout this report, year in and year out, in their income portfolios.
And that’s to say nothing of the outsized 7.4%+ yields I’ll bring you every single month!
Sounds great, right?
After all, who wouldn’t want double-digit gains from their dividend investments? Given that most people look to these holdings for income alone, this is basically free money!
Even so, CEF Insider isn’t for everyone.
It’s a unique service I’ve custom built for folks who want to go further than the average investor to sift out the very best CEFs for high, safe income and massive upside.
Because I’ve bulked it up with a set of wealth-building tools you simply won’t find anywhere else, starting with …
Your Secret Weapon for Big Profits in CEFs
Our streamlined CEF Screener lets you sort through the nearly 600 funds in the CEF universe worth your consideration at the click of a mouse.
Sort by ticker symbol, asset class or discount/premium to NAV, and you’ll instantly see how each CEF stacks up to its peers.
This one-of-a-kind fund-picking tool, which I’ve spent months back-testing and fine tuning, is backed by a rigorous 6-point assessment that judges each CEF by its current and historical NAV, 10-year return, fees, yield on NAV (the best measure of dividend safety) and much more.
That’s not all. You also get our one of a kind “CEF Insider Heat Map,” which instantly separates attractive funds (green) from dangerous pretenders (red).
It’s like having me personally guide you to the CEFs worth further consideration for your portfolio.
I’d normally charge $99 a month for access to the Screener alone—but you get it absolutely FREE when you try CEF Insider.
Safe 7.4%+ Yields and Big Gains Are Just the Start
In addition to the CEF Screener and your 3 reports with my very best picks for 7.4%+ gains and double-digit upside, your risk-free trial contains a whole lot more, including:
- Your CEF Watch List: My “shortlist” builds on our CEF Screener by giving you the Top 40+ CEFs I’ve got my eye on—the ones I’ve handpicked and personally safety checked. Each one offers outsized yields and bigger-than-average discounts, so they’ve got plenty of built-in upside too. But they don’t yet qualify for our…
- Members-Only Portfolio: These are the “best of the best”—my top CEF picks for high, safe income and big gains right now. All of them are laid out in an easy-to-read portfolio that includes my up-to-the minute recommendations, buy-under prices, current yields and much more.
- Monthly Issues: On the fourth Friday of each month, you’ll get my latest analysis of the ever-changing CEF space right in your inbox. I’ll include detailed analysis on new fund recommendations, updates on existing positions and an overview of trends and events that may affect your holdings.
- Weekly Analysis: Sent straight from my desk to your inbox, you’ll get my weekly investing ideas on CEFs I’ve been watching and analysis of major market events.
- Flash Alerts: You’ll never have to worry about missing out on breaking news on the CEFs in our portfolio. I’ll have an eye on all of them 24/7 and will email you right away if there’s ever any change in our position.
- Unlimited Access to the Members-Only Website: Day or night, you can log into our password-protected website, where you’ll find easy access to all of our resources, including the CEF Screener, CEF Watch List and the full portfolio. You also get a full archive of our monthly issues, special reports and Flash Alerts, so you can see how our recommendations have changed over time.
If you’ve read this far, I’m guessing you think these high-yield funds may be a good fit for your portfolio.
But I also understand that you may still be hesitant to try a new service, and I want you to be certain this is worth your time, so there’s one more thing I’d like to add…
My Ironclad 100% Money-Back Guarantee
I’m so confident you’ll profit from my research that I’m going to give you 60 days to try CEF Insider absolutely risk-free.
Simply click here to start your Charter Membership today. Download your special reports, read the latest issue, kick the tires on our CEF Screener and start tracking one or two picks from the portfolio.
Then enjoy the next couple issues of CEF Insider, my weekly column and all the other benefits of your full Charter Membership.
If after nearly two months you don’t feel the advice has more than covered your cost, or if it’s just not right for you, simply let me know and I’ll issue a full refund of your membership fee. That’s 100% of your money back, no questions asked.
Plus you’re welcome to keep the free special reports as my thanks for trying it out.
But I have to tell you something here. I’ve built this service for people who truly understand the explosive gains and double-digit yields these ignored funds offer.
So if you’re okay with trying a new way of investing …
… and you’re brave enough to move a little beyond the mainstream to goose your portfolio’s yield and add a double-digit capital gains pop this year…
If that sounds like you…
Then taking me up on a risk-free road test of CEF Insider is a no-brainer.
Which brings me to my next point.
As I mentioned, CEF Insider is a totally unique service, so it’s vital that we keep our group small.
Today, I’m only letting in 300 “Founding Members” of CEF Insider.
You read that right: just 300 people. After that, I’m closing the doors. And given that there are thousands of investors reading this right now, I expect those spots to go fast. Especially when folks see the eye-popping gains and outsized income we’re talking about here.
I don’t want you to miss out, which is why I’m urging you to start your no-obligation road test right now … while this is in front of you.
To recap, you get a full Charter Membership, with full access to our powerful CEF Screener (a $198 value), the CEF Watch List, the complete CEF Insider portfolio and all of our premium research.
Plus you’ll also receive 3 free research reports (a $297 value), weekly email updates and alerts, and a full 60 days to decide if you like the service.
And it’s all completely risk-free.
I don’t see how you can lose here, because I’m the one taking all the risk. All you have to do is click the button below to get started right now.
In the coming months, many investors will still be on the sidelines, fearful of global events or waiting for commodities to turn around.
Meantime, our CEF Insider members will be quietly pocketing their 7.4%+ cash payouts and watching their funds’ price start their relentless upward climb as their unusual discounts start to swing shut. Don’t be left on the sidelines. Start your no-risk trial to CEF Insider now.
Yours in profits,
P.S. As soon as you join CEF Insider, you’ll have immediate access to our CEF Screener, Watch List, the complete portfolio, your 3 special reports and your first issue. The 3 reports and two months’ access to the Screener alone are worth $495, but they’re yours free as a new CEF Insider member.
P.P.S. The clock is ticking! Other investors are reading this invitation right now, too, and I expect our 300 available seats to fill up fast.
You can’t afford to hold off on this one. Simply click on the button below. You have no risk and no obligation whatsoever.