There’s an activist story shaking the CEF world right now. And no matter how it plays out, it could lead to shrinking discounts in these high-yielding funds.

We’re going to break down what’s happening today. Then I’m going to give you my favorite way to line yourself up for one-time events like this—an activist play, a takeover, a stock split—in your own portfolio.

Ackman/CP Was the Classic Activist “Unlock”

One of the most successful activist plays came when Bill Ackman installed veteran railroader Hunter Harrison at Canadian Pacific Railway—now Canadian Pacific Kansas City (CP). Five years later, the stock had more than doubled:

“Classic” Activist Move Ignited CP

But of course, not every activist move is this successful.… Read more

Oil is up, and everything else is down. Stocks. Bonds. Even gold, the traditional safe haven!

Real estate stocks are on sale as well. Which means we contrarians need to go shopping. Today we’ll look at four real estate investment trusts (REITs) yielding between 6% and 15%.

Right before the conflict started, I mentioned that we were looking at an attractive setup for price appreciation in REITworld.

As the Fed cuts rates, the dividends that REITs pay become increasingly attractive to income investors. Money markets don’t pay 5% any longer. Neither do many bond funds. But REITs pay … 

 

And rates are likely to continue lower due to the rollout of AI across the economy.

Today we’re going to talk about a closed-end fund (CEF) that not only helps us protect our portfolio as this market wobbles—it gives our income stream a boost, too.

The situation in the Middle East (and the market reaction to it) is behind our opportunity here. That and the fact that this fund has proven that its strategy is purpose-built for times like these.

But that said, this isn’t a fund we can “set and forget”: Timing matters (on both the buy and sell side)—and the current moment is particularly well suited to its portfolio and strategy.

The fund we’re going to discuss holds everyday stocks, like those in the S&P 500.… Read more

“Two Pacificos, please?” I asked the bartender.

(When in doubt, hit the lager button. The other option was Lagunitas IPA, a 6%+ refreshment. A bit heavy for our school fundraiser.)

I handed the second Pacifico to my buddy—responsible dad rule two, keep school event double fisting to a minimum—who kindly came to support the cause. I asked my friend how his Saturday was. Interior design work, he explained.

“Tell me more,” I fished…knowing that he was most definitely not an interior designer.

He’d taken a picture of his new house, uploaded it to AI, and asked for a new layout.… Read more

Even Jay Powell seemed lost.

“The thing I want to emphasize is that nobody knows,” the beleaguered Fed chair sighed at last week’s presser, when asked about the effects of the latest flare-up in the Middle East.

It’s easy to see why. The poor man is in a jam not of his making. Futures markets see fewer and fewer rate cuts on the horizon. And more forecasts see a bounce in inflation—maybe even stagflation.

To be sure, no one at the Fed (or anywhere else) had $100 oil on their bingo card in January!

The mainstream crowd, of course, is just as shocked as the experts at that development.… Read more

This private-credit mess we’ve been talking about lately has raised a question no one wants to ask: Is 2026 shaping up to be another 2008?

It’s easy to see why some investors may be thinking along those lines. And it’s something I’ve been giving a lot of thought to lately. But here’s the twist: There’s another year I think 2026 resembles a lot more than 2008.

That would be 2023.

If you remember, that year was a buying opportunity in stocks—and to pick up the closed-end fund (CEF) we’re going to discuss today. In fact, both 2008 and 2023 ultimately turned into strong setups for this 7.7%-paying fund.… Read more

Healthcare stocks are selling off with the turbulence in the Middle East.

But, why? The best plays here are geopolitical-proof. They print money regardless of what’s going on in the world.

So this is a good time to check in on healthcare. In a moment we’ll review five dividends between 6.0% and, get this, 14.1%!

First, though, let’s unpack the reasons for the recent pullback. Back in August, I flagged how Medicaid cuts, health research funding, pharmaceutical tariffs and a cocktail of other headwinds had kept the sector pinned down for months. However these resilient companies have a habit of getting back up—and sure enough, healthcare went on a new tear, returning about 25% through late February.… Read more

Boaz Weinstein is a name many CEF investors know. He’s an activist investor who’s targeted CEFs in the past, particularly those he sees as underperforming.

Now, another closed-end fund (CEF) investor is adopting Weinstein’s tactics—and turning them on two of the activist’s own funds. This investor’s goal? Wipe out the discounts to net asset value (NAV, or the value of their underlying portfolios) on these two funds, and in doing so drive their prices higher.

It’s a fascinating story, and one that shows how, in the small world of CEFs, skilled activists sometimes turn their attention to each other.

Let’s back up for a moment.… Read more

Be careful how you buy your bonds. The most popular tickers have four “fatal flaws” that’ll doom you to underperformance at best, or at worst leave you hanging in the event of a market meltdown!

Let’s pick on the widely followed and owned iShares iBoxx High Yield Corporate Bond ETF (HYG) as an example. It has attracted over $15 billion in assets because:

1. It’s convenient and as easy to buy as a stock.
2. It’s diversified (for better or worse, as we’ll see shortly) with 1,327 individual holdings.
3. It pays well, at nearly 6% today.

The accessibility of funds like HYG appears cute and comfortable enough.… Read more

The bombs continue to fall in the Middle East. But we contrarians know something the crowd always forgets at times like this:

The world is always burning somewhere.

At times like these, our Contrarian Income Report dividend strategy shines. Our portfolio yields 8.2% on average, and those dividends roll in no matter what the world throws at us.

The result? No need to sell into a downturn to get the cash we need. And we get the chance to go on offense, too, snagging dividends on the dips and boosting our income stream (and upside potential) as we do.

Rinse and repeat.… Read more