8% Dividends, 10%+ Upside and a Tax-Cutting Strategy You Won’t Believe

A lot of closed-end fund (CEF) investors—particularly new ones—wonder how CEFs can sustain huge 8% dividends in a 2% (if we’re lucky!) world. It’s actually pretty easy. Below we’ll look at three ways CEFs make these retirement-changing payouts happen. And, in response to a question I’m hearing a lot from CEF Insider subscribers these days, we’re going to zero in on one particularly sticky subject: return of capital (ROC). Contrary to what many people think, ROC isn’t a fund simply handing your cash back to you—and charging a fee for doing so. It’s actually a dividend-investor’s dream! Let’s set up our deep dive into ROC with a snapshot of how easy it can be for CEFs to hand us those rich 8%+ dividends.… Read more