3 Funds Paying Up to 12% and Set to Rip Higher

The big rebound is on! But don’t worry, your opportunity to grab big gains (and dividends) hasn’t evaporated.

There’s still time!

And you can start with 3 of the 4 funds I pounded the table on back on February 19. At the time, all 4 of these cheap selloff buys were paying a combined 13.4% income stream.

So why are just 3 of these funds still worthy of your attention, only a few weeks later?

I’ll unpack that—and name these 3 top-flight funds—in a moment. First, let’s step back and take a look at what happened in a very wild February, and where it all leaves us now.

A Market Disaster Gets Undone

So much has happened. First, the S&P 500 (SPY) did this:

Was It All a Dream?

The good news is, the stock market losses we saw at the start of the month are now history.

The even better news is that the S&P 500 is up just over 3% from the start of 2018, meaning this market isn’t overheated. That “goldilocks” position should be giving investors more confidence that now is the right time to get back into the game.

It also means time is running out if you haven’t gotten back in already.

And if you’re sitting on cash?

No problem. I’ll show you where to put that cash to work without overpaying too much for the wrong investments.

But before I get to that, let’s take a look at those 4 funds I earmarked in February. They were the PCM Fund (PCM), the Virtus Global Multi-Sector Income Fund (VGI), the Kayne Anderson MLP Investment Company (KYN) and the Dreyfus Strategic Municipal Bond Fund (DSM).

How do these funds look now?

A Quick Improvement

While the warm weather—and a corresponding drop in natural gas and heating oil demand—has weighed on the master limited partnership–focused Kayne Anderson fund, the average return for these picks since I pointed them out, about two weeks ago, is 2.7%, while the S&P 500 is down slightly since then.

In other words, if you’ve heard that buying a low-fee index fund is the right thing to do, just take a look at that chart.

So What Now?

To determine which of these funds remain compelling options, we need to look at their discount to net asset value.

This is where we compare the market price for these funds, which trade daily like normal stocks, and their NAV, which is based on the market price of every item in their portfolios.

Now you’d think an efficient market would make these two figures the same, right? Wrong!

That’s because these are closed-end funds, a little-known corner of the market that’s worth around $300 billion, compared to the multi-trillion-dollar mutual fund and ETF universes. (If you’re unfamiliar with CEFs, click here for an easy-to-follow primer I recently wrote on these cash machines.)

The small size of the CEF market means a lot of big investors who could profit from these inefficiencies don’t bother—and it also means a lot of mom-and-pop investors don’t know these funds even exist.

That’s our opportunity.

The 4 funds I’ve shown you are all CEFs, and, of course, none of them are trading at their NAV (although two do come close):

3 Bargains—and 1 Ship That’s Sailed

First, let’s tackle the PCM Fund, which trades at a 9.8% premium to its NAV, meaning it’s priced above the actual market value of its portfolio. That’s because PIMCO, the fund manager, is great at beating the market, so the market rewards them with a premium.

But a near double-digit premium is too rich for my blood, so this isn’t the best fund to buy right now. And if you nabbed PCM at its unusually low premium earlier in February, you might want to consider getting out or, at the very least, holding on and allocating cash to other investments.

Meanwhile, the Dreyfus Strategic Municipal Bond Fund sports a discount to NAV that has widened since my February 19 article—but investors haven’t really lost any money since I recommended it. How is that possible?

Simple: the fund’s price has slid, but the NAV is staying straight.

Stable NAV, Lower Price

And since investors are still getting the fund’s 5.5% dividend yield, they’re pocketing a strong income stream while they hold on. And since it’s gotten even cheaper, despite the fact that the fund’s real, intrinsic value hasn’t changed, it’s something worth considering if you have cash to spare.

Now let’s hit the Virtus Global Multi-Sector Income Fund and the Kayne Anderson MLP Investment Company. Both funds are trading close to their NAV, and both are paying massive dividends—12% and 10.6%, respectively. So should income investors hold on or buy more?

To answer that question, we’ll take a look at this chart showing where their discounts to NAV stand relative to history:

The Big Picture

This chart makes one thing clear: KYN is now cheaper than it’s been through most of its history, where it tends to trade at a premium to NAV. On the other hand, VGI’s discount, while off a bit from the last few months, is narrower than it usually is.

That makes one thing clear: buying more KYN and waiting for it to revert to its historical mean looks like a smart move, while cautiously adding VGI is also practical, since it’s a strong fund with a very good portfolio.

So if you’re sitting on cash, 3 of these funds still deserve your attention. And thanks to the 500-strong CEF market, there are a lot more out there, too—starting with the 14 I want to tell you about now.

One Click for the 14 Best Funds of 2018

That’s right—you can skim right through all the 500 or so CEFs in the world with just one click and go straight to the 15 funds with the highest yields and biggest gains ahead in 2018 (I’m talking SAFE dividends up to 9.6% and double-digit upside).

All you need is a no-risk 60-day trial to my CEF Insider service. And your timing is perfect, because I’m making a limited number of these trial memberships available now!

Simply CLICK HERE to start your no-obligation trial. When you do, you’ll get instant access to the names, tickers and my complete research on each and every one of the 15 cash machines in the CEF Insider portfolio.

These 15 bargain CEFs all trade at absurd discounts to NAV that are slowly narrowing. That puts unrelenting upward pressure on their share prices and sets us up for a market-crushing gain in 2018!

But the best part—by far—is the dividends.

Right now, the portfolio boasts an average yield of 7.4%. But remember, that’s just the average! Cherry-pick my 3 highest-yielding funds and you’ll be pocketing life-changing payouts like 9.6%, 9.55% and 9.0%!

I hope you’ll take this opportunity to join the small group of investors across the country who are pocketing regular monthly dividend checks from these 15 terrific funds.

Please don't make this huge dividend mistake... If you are currently investing in dividend stocks – or even if you think you MIGHT invest in any dividend stocks over the next several months – then please take a few minutes to read this urgent new report. Not only could it prevent you from making a huge mistake related to income investing, it could also help you earn 12% a year from here on out! Click here to get the full story right away. 

Source: Contrarian Outlook 

My 7 Must-Own Stocks to Build Up Your Retirement

Source: Shutterstock

I have a completely different philosophy for retirement stocks than virtually anybody else in the financial markets.

The prevailing wisdom is to overweight in bonds in order to generate income and to allegedly reduce volatility in the overall portfolio. That’s horrible advice, mostly because bonds and bond funds are actually more volatile than stocks are.

The other terrible advice that is given to current and pending retirees is that retirement investors should plow money into blue-chip stocks that pay dividends of 2% to 3%.

That is also terrible advice because ever since the Federal Reserve reduced yields, a lot of retirement investors have moved further out on the risk curve into exactly these stocks, bidding them up to levels that are unsustainable.

The stocks are more likely to fall in the next few years by substantial amounts, more than enough to wipe out whatever dividends are being paid. That’s why I chose a particular set of stocks, ones that go against the standard retirement grain, but that should be in your portfolio.

Must-Own Retirement Stocks: United Parcel Service (UPS)

Source: UPS

United Parcel Service (NYSE:UPS) is about as close to a no-brainer in the category of retirement stocks as you can get. It’s always great to have stocks that are part of an oligopoly in your portfolio, especially if they been around a very long time, and have a very good track record.

UPS represents a core business of the human experience. People will always need to send things around the globe, and are only so many companies with a broad enough reach to do that. It pays a very respectable 3 BA stock should continue to do well for quite some time .44% yield.

Must-Own Retirement Stocks: Boeing (BA)

The Boeing Company (NYSE:BA) is another company that falls into the oligopoly category for retirement stocks. There are a limited number of companies that actually manufacture airplanes to begin with, and very few companies that have the breadth of experience in defense contracting.

BA has been in business for 100 years and its expertise in defense, space, security, and airlines is unparalleled.

With an administration that places a high value on defense, Boeing will do well for quite some time, and the $5.68 in dividend payments every year as an added bonus.

Must-Own Retirement Stocks: Visa (V)

Visa, Inc. (NYSE:V) is yet another company in the same theme of oligopolies for retirement stocks. There are very few credit card processing companies in the world, and Visa has the largest market share out of any of them.

With financial services becoming more and more impactful in the global economy, and consumers needing an increasing number of payment solutions, Visa will be at the top of the class for a very long time.

It generates a tremendous amount of free cash flow and, in fact, has so much that he could afford to raise its dividend significantly.

Must-Own Retirement Stocks: Exxon (XOM)

Exxon Mobil Stock's Big Profit-Growth Target Fails to Impress Investors

Source: Shutterstock

Exxon Mobil Corporation (NYSE:XOM) belongs to a category of retirement stocks that I also considered to be core holdings for just about any portfolio. You must have fossil fuel energy companies represented in some way in your portfolio.

Energy is a central component of the human experience. Look around you every single thing has been brought to your location by a vehicle that required fossil fuels to transport them.

Not to mention whatever was needed to create the products in the first place, such as plastics. Beyond that, of course, energy is what makes the world move.

Exxon Mobil happens to be substantially undervalued at this time.

Must-Own Retirement Stocks: AT&T (T)

AT&T Inc. (NYSE:T) might not have made my list several years ago, despite the fact that it is a dividend aristocrat that has been increasing dividends every year for more than 25 years.

That’s mostly because organic growth is a telecom company had been slowing. But then it purchased DirecTV, and is now becoming a content play with its proposed Time Warner Inc. (NYSE:TWX) merger.

I do believe the merger will go through is I don’t believe the Department of Justice has a viable case.

Must-Own Retirement Stocks: Disney (DIS)

Walt Disney Co Stock Is Due for a Magical Run Higher

Source: Shutterstock

The Walt Disney Company (NYSE:DIS) is the premier media and entertainment company in the world. As it is, it owns three extraordinary properties in Marvel Studios, Lucasfilm and Pixar films.

That says nothing about its own incredibly successful studio. Put all this together with the assets it hopes to acquire in the buyout of Twenty-First Century Fox Inc. (NASDAQ:FOXA), and Disney will have enough content that will literally last a generation and probably longer.

The theme parks and resorts have become a staple of tourism, and one that is constantly innovating and redefining itself.

Must-Own Retirement Stocks: Duke (DUK)

Duke Energy Corp (NYSE:DUK)

Source: Shutterstock

Duke Energy (NYSE:DUK) is a massive utility that stretches through the Southeast and Midwest. The wonderful thing about utility stocks is that they are regulated.

That means that the utility has a very clear idea of how much revenue it will generate every year, and therefore what kind of costs it can generate in order to not only remain profitable but pay a regular dividend.

Speaking of that dividend, Duke has been paying it every quarter for 91 years.

As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.

Source: Investor Place