Why I’m Calling for Double-Digit Gains (and 9%+ Dividends) From CEFs This Year

From what I can see, this year is setting up to be another 2016—and that’s likely to hand us a buying opportunity in our favorite high-yield investments: closed-end funds (CEFs). Here’s what I mean: after the market’s fast run higher in January, things have stalled out a bit. After the year we put in last year, this means we’re still left with some decent discounts to net asset value (NAV) on CEFs, as well as high yields (as CEF veterans know, payouts of 7% and up are common in the space, and most CEFs pay dividends monthly, too). Right now, for example, our CEF Insider portfolio boasts a number of double-digit yields, reaching up to 12.3%.… Read more