One of our favorite tech-focused closed-end funds (CEFs) is showing a pattern we love to see. What I’m going to show you below is one of my favorite setups for future gains for us, while we collect strong dividends, too.

The fund in question—the BlackRock Technology and Private Equity Term Trust (BTX)—yields 7.4% as I write this, so we’re getting paid handsomely while we wait for those gains to materialize.

Plus, the performance of this CEF’s underlying portfolio, or its “total NAV return” in CEF-speak, has earned enough over the past 12 months—43.8%, to be exact—to pay that dividend many times over, so the payout looks safe (and is paid monthly, to boot).… Read more

I need to ask your honest opinion, my careful contrarian! Should this reader move on from me?

“I’m 89 years young and active,” Peter wrote. “Don’t need income—only growth.”

(I’m the income guy. Do I have a growth arrow in my quiver, or should this young man look elsewhere to get rich?)

First of all Peter, you’re the man. You’re doing many, many things right to eschew current income at the spry age of 89. Good for you for staying active and for being in a position to still pursue portfolio price gains.

Peter went on to explain that he holds six of my official recommendations.… Read more

This market is in a three-way “tug-of-war”—and it’s set up some sweet deals on our favorite 9%+ dividends.

The Fed. The White House. Iran. A peep from any of the above and stocks soar (or tank).

But we contrarians can see through the short-term fog here.

We’re buying this volatility, in part because we’re playing the long game on AI, and the likelihood it’ll cap wage growth and inflation in the long run (more on that below).

But in the here and now, we need to play it smart—and zero in on payers that cushion our downside so we can collect their rich payouts in peace.… Read more

You’ve no doubt heard the old Wall Street saw: “Sell in May and go away.”

There’s one problem with it: It doesn’t tell us when to buy again. 

I mean, many investors take it to mean that the best time to buy again is in the fall, after Halloween. So maybe we could say, “In the season of orange and black, it’s finally time to go back”?

I don’t know. I’m not a poet (as you can probably tell).

But I am an investment strategist, and in my 15 years working in the field, I’ve seen this “sell in May” advice work sometimes and be disastrous at others.… Read more

This is one pricey market, and if you’re hesitant to put new money to work, I am sympathetic. After all, we’re here for the dividends. We want our principal to stay intact, so I understand it doesn’t make much sense buying high if we’re going to collect dividends but then watch the stock market proceed lower.

Valuations seem to have decoupled from fundamentals in many cases. As we speak, SpaceX, for example, claims an addressable market of $28.5 trillion—roughly the size of the entire U.S. economy. Which is all fair and well—but it also commands galactic premiums at 100 times sales.… Read more

As America celebrates its 250th, there’s something happening inside its economy that’s not getting enough attention.

A quiet boom.

It’s one more thing worth celebrating this month—and we’re going to do that. We’re also going to get set for the next leg of America’s low-key growth run with a closed-end fund (CEF) yielding north 11.6%.

The chart below, which The Economist published two years ago, nicely sums up the wealth-building power of the US economy over the long haul.

The key piece of info here is on the left side of this chart. Here, we can see that over the last century, each generation of Americans has started its working career earning more than previous ones.… Read more

In the working world, paychecks show up every two weeks. Or at least, every month. Which keeps up with the pace of monthly bills, charges, and expenses.

In the stock market world, payouts (dividends!) arrive every quarter. That’s 30 days in between bills, but a full 90 days spanning divvies.

Hence the appeal of monthly dividends. These management teams know that the investors who hold their stock are here for the payment. It’d better show up every 30 days, and it’d better be the same amount. No cuts allowed.

Problem is, some of these monthly payers are writing checks their business can’t cash.… Read more

The crowd is still way too worried about interest rates—and their fear is handing us a shot at two stout monthly dividends (yielding up to 11.9%) on the cheap.

We can thank new Fed chair Kevin Warsh for ginning up the panic here. Because he was appointed by President Trump, the suits expected Warsh to push for lower rates right off the hop. Instead, the new Fed chief has gone full Dirty Harry on inflation.

Investors are buying it. But they’re already on the wrong side of the story.

Oil has plunged to around $68 a barrel. And the job numbers for June, out last week, were soft, with the number of new gigs around half of what it was expected to be.… Read more

Today we’re going to discuss a 6%-paying fund that’s quietly built a portfolio perfectly tuned for the rest of the 2020s.

Few investors realize it … yet. Which is why we can grab this 6% payer (whose payout looks set to grow from here) at a 10% discount to its “true” value.

The fund in question is the Sprott Focus Trust (FUND), a closed-end fund (CEF) managed by Whitney George. He’s a manager you may have heard of: George is known for the profits he’s earned over the decades by focusing on two key areas: energy stocks and small caps.… Read more

Wall Street analysts have one job: predict where companies’ earnings are going in the coming quarter. Sounds simple enough, except said suits aren’t so good at it!

For the most recent earnings season, these forecasting fruit flies buzzed around modeling 12% earnings growth for the quarter. The S&P 500’s companies showed 27% profit growth—more than double what the “experts” predicted in their spreadsheets. They were way off.

So what does it mean when earnings come in at more than double the forecast? It means these companies have plenty of room—and reason—to hand more of that cash back to us. And that matters because over the long run stock prices follow their dividends.… Read more