If you like big steady income, the CEF we review in this article has delivered for decades. And it just got better this year after increasing its quarterly distribution meaningfully. Not to mention, it trades at a compelling discount to NAV which basically eliminates the small performance drag of its very reasonable expense ratio. Furthermore, it provides critical exposure to diversified equity (stock) markets that a lot of income investors frequently miss out on (because they’re overly concentrated in bonds and only a small subset of the equity market). And it does all of this in a highly-disciplined quarterly-distribution approach that allows many investors to “set it on auto-pilot” and sleep well at night.
High Income NOW: Updated Top 10 Tear Sheet, 23-Position Portfolio (9.7% Yield)
Our Top 10 “High Income NOW” Tear Sheet has been updated. And so has our complete 23-position “High Income NOW” Portfolio (aggregate yield is 9.7%). There have been several new positions added, two complete sales and some rebalancing of existing positions. You can also access “buy under” prices relative to current market prices, plus additional aggregate and security-specific data.
Forget High Growth: Top 10 Big Yields Worth Considering (August Edition)
There comes a time in every investor’s life when they realize chasing high growth stocks makes absolutely no sense whatsoever. Sure, if you’re 25 and want to roll the dice (on “the next big thing”) go for it. But if you’ve built a nest egg, and you just want your investments to produce big steady income, this report is for you. We countdown our top 10 big yield investments (including REITs, BDCs, CEFs and more) with a special focus on why each opportunity is uniquely attractive right now.
ADX: New 8.0% Distribution, Shrinking Discount to NAV (Tender Offer)
Quick Note: As we wrote about previously, this attractive CEF recently announced initiatives to shrink its discount to NAV (good for shareholders). The initiatives include a newly increased distribution, plus a public market tender offer to acquire up to 10% of the shares at 98% of NAV. And as you can see in the chart below, things are going well.
Top 10 Big-Yields: REITS, BDCs, CEFs (July Update)
Concentration can help you get rich, but diversification helps you stay rich. And if you own 25 different flavors of big-yield mortgage REITs—you’re still not exactly “well diversified.” In this report, we countdown our to 10 big-yield opportunities, with a special focus on diversifying your risks (across different investment types) while simultaneously keeping your income high.
50+ Big-Yield CEFs: These 2 Worth Considering
In this quick note, we’re sharing updated data on 50+ big-yield closed-end funds (“CEFs”) from across categories. You likely recognize many of these top names. We’re also highlighting two in particular that are attractive because of management’s new active initiatives to shrink the discount to NAV (a good thing).
Top 10 "High Income NOW" Securities Tear Sheet (June Update)
Quick Note: The Top 10 “High Income NOW” Tear Sheet has been updated for July (and it can be accessed below). There were a few minor updates. For example, we added to a big-yield municipal bond CEF (as an honorable mention) because of management’s announced efforts to reduce the price discount), and we added to a top BDC that recently sold off (as it presents an attractive buying opportunity after a price decline). Disciplined, goal-focused, long-term investing continues to be a winning strategy.
Distribution Quality Scores: 10 Top Big-Yields, Ranked
One of the greatest concepts ever is retiring and simply living off the dividends. No work, no tasks, just big steady distributions rolling in like clockwork (for you to spend and live life however you please). The problem with this, of course, is that many investors end up chasing after the biggest yield opportunities without properly considering the quality of those yields. In this report, we introduce our “Big-Yield Quality Scores,” ranking 10 very popular big yields, including PDI, JEPI, SCHD, USA, ARCC, AGNC and more.
Big-Yield (8%+) Equity CEF: Big Discount to Narrow
One of the largest holdings in our “High Income NOW” Portfolio got some good news recently, and the share price is up. We expect this CEF’s price discount (versus NAV) to narrow though year end (a good thing), and the long-term performance to be significantly better than most other big-yield opportunities. In this report, we review the strategy (and its relative attractiveness versus other big-yielders), the good news (and why we expect the current discount to NAV to shrink) and finally our strong opinion on who might want to consider investing.
100 Big-Yield CEFs: Ranking Our Top 5
When the Market Falls, Just Keep Buying More (Of This Attractive +6% Yielder)
When the market falls, just keep buying more. That’s one of the best strategies a long-term investor can follow, and one of the best ways to implement it is through the attractive closed-end fund (“CEF”) we review in this report. It currently trades at a compelling 14% discount to its net asset value (“NAV”), and it guarantees at least a 6% distribution yield each year. What’s more, it has been paying big distributions to investors for over 80 years straight, and it has an impressive long-term track record of outperforming the S&P 500 (net of fees). We review all the details in this report, and then conclude with our strong opinion on investing.
Skip UTG: Two Better Big-Dividend CEFs
Closed-End Funds (or CEFs) are often an income-investor favorite because they can pay large distribution yields. However, CEFs come in many different shapes and sizes. One very popular CEF, The Reaves Utility Income Fund (UTG), has performed very well this year, but in this article we argue that it’s time to stop adding money to UTG because there are currently better CEF opportunities available. We will review two specific attractive CEFs (that we currently prefer over UTG) in this report.
Big Q4 Dividend: On Sale for Labor Day
This attractive CEF has been paying big dividends for over 80 years! And its big annual Q4 dividend is currently on sale, as the shares trade at a very attractive discount to net asset value. Additionally, the fund is well managed, it charges very low fees for a CEF, it doesn’t use any risky leverage, and it provides very important diversification by giving income-focused investors exposure to market sectors they don’t usually participate in. If you are a long-term, income-focused investor that likes to buy things on sale, this CEF is absolutely worth considering.
Attractive CEF: +9% Yield, Discounted Price
Income-focused stock-market investors often make the unfortunate mistake of concentrating all of their investments in the same few big-dividend sectors of the market. However, this particular closed-end fund diversifies across important sectors, thereby reducing investor risks, increasing total return opportunities, and still offering a big yield for investors. It is also trading at a very attractively discounted price, has an experienced-leadership team, and pays investors at least a 6% annual yield—and usually more (in 2019 it paid 9.6%, and 2020 is on pace to be another very strong year). What’s more, because it pays three smaller dividends in Q1, Q2 and Q3, investment websites consistently under-report the size of the big yield, and there is still time for investors to get in now to capture the big upcoming Q4 payment. And by the way, it’s been paying healthy dividends for over 80 years straight!
State of the 2019 Rebound: High Income CEF Edition, Ideas
Stocks are off to their best start in 32 years. But as you can see in the chart, the strong start comes after an absolutely abysmal 4th quarter. This report reviews the current state of the rebound and opportunities from the perspective of high income closed-end funds. We conclude with investment ideas and advice.
Top 5 High-Yield Contrarian Opportunities (Members-Only)
The 5 High-Yield Equity CEFs We Own: Hold, Sell or Buy More?
Attractive High-Income Closed-End Funds
This article details multiple attractive opportunities to capture >6%+ yields. And because these attractive income opportunities are all CEFs, they offer investors a little something extra in terms of their currently discounted prices versus their NAVs. If you're an income-focused investor, these CEFs are worth considering.
Top Big-Distribution CEF Ideas for 2018
If you are an income-focused value investor, some CEFs are currently offering highly attractive “double discounts” heading into 2018. CEF investors should be aware of the distribution income sources, including dividends as well as capital gains, for example. This article reviews our current CEF holdings and several top ideas for 2018.