Saturday, May 4, 2024
This year, I developed a great interest in funds, usually ETFs, that use covered call strategies to boost the dividend income paid to investors. I currently include three of this type of funds on my Dividend Hunter recommendations list. Beyond these, I have put together a list of more than 20 covered call ETFs, and […]
Because I research and recommend high-yield investments, I often receive questions about individual closed-end funds, sometimes referred to as CEFs. According to CEF Connect, 285 closed-end funds yield between 5% and 28%. It is easy to understand why closed-end funds attract yield-hungry investors like moths to the flame. When asked about a closed-end fund, my […]
The coronavirus pandemic put the ultimate stress test on income investments. Hundreds of companies cut or suspended dividend payments. Companies that did not cut dividends through the pandemic should be high on the list for income-focused investors—and companies that grew their dividends in 2020 deserve gold stars and a place in your portfolio. In February […]
Recently, I have found myself going down the rabbit hole leading to ETFs and closed-end funds (CEFs) that use covered call strategies. These funds offer the promise of investment exposure to major asset classes or indexes, plus a high level of dividend income. Closed-end funds aren’t generally my cup of tea as many remain murky […]
I’m often asked, “what are stock options?” by some of my newer readers. Stock options are derivatives based on the value of the stock and offer the trader the opportunity to buy or sell the stock at a stated price within a specific time. The most common option trades, especially for beginners, are covered calls. […]
Many investors are playing the recovery trade, looking for those stocks and companies that are not yet out of the pandemic woods, but should see a substantial improvement in their business results as the economy continues to open. Hospitality and travel-related companies are popular stocks for this investment strategy. However, with the hospitality-related REITs, shares […]
I am in the mood to ramble. (By that, I mean I’d like to share some thoughts about current broader themes affecting investing and the economy.) We have not seen this much uncertainty in the financial world since the Global Financial Crisis nearly 15 years ago. My work lets me follow the current financial news, […]
After a year that featured tech stocks as the big winner, many investors (and television talking heads) have expressed shock that the energy sector leads the way so far in 2021. With the price of crude oil rising higher, the Energy Select Sector SPDR ETF (XLE) has gained 43% through the first five months of […]
I regularly field many questions about specific high-yield investments. The questions often specify a closed-end fund (CEFs), and the investor asking often does not realize the high-yield stock symbol that caught their interest is a closed-end fund. Today, let’s look at CEFs, both pros and cons…lots of cons. CEF stands for closed-end fund. A closed-end […]
With the major U.S. stock indexes hovering around record highs, I often am asked about selling to lock in gains, and then waiting for the next downturn to reinvest. While I do not think a wholesale move into cash is the right move, I spend a lot of time considering what to tell my subscribers […]
