Get a 10% Yield on These 3 Secret, Safe Investments

All 3 are niche fund investments. Their shares trade like regular common stock on the major exchanges. In this way, they resemble exchange-traded funds (ETFs). But they differ from ETFs in one important way. [Daily Profit]( Get a 10% Yield on These 3 Secret, Safe Investments [By Stephen Mauzy] By Stephen Mauzy Friday, October 7, 2022 Investor sentiment has shifted toward income from growth.  The shift is understandable, given the volatility in the market today. Income is tangible, growth is speculative.  The shift is revealed in the Dow Jones Industrial Average.  The 30 stocks that populate the Dow represent older, established companies. Most pay dividends. The Dow has outperformed the other major indexes this year.  A solid dividend-paying Dow stock will yield 4%, maybe 5%.  But annual inflation is running above 8%.  If inflation is running above 8% and you’re receiving 4%, it doesn’t require Einstein-level genius to do the math. You’re losing purchasing power.  So let’s up the income. How about 10% or 11%, maybe even 12%?  You can do that with a proven investment category that few investors consider.  Closed-end funds (CEFs).  CEFs are niche fund investments. Their shares trade like regular common stock on the major exchanges. In this way, they resemble exchange-traded funds (ETFs).  But CEFs differ from ETFs in one important way.  A CEF’s share price can diverge from the value of the underlying portfolio. Sometimes the shares will trade at a premium, many times at a discount. Sometimes at a considerable discount. Pay $0.90, get $1.00 worth of value  CEFs might be niche investments, but they open a world of income opportunities.  Stocks and bonds – domestic and international – are on offer, but so are many asset classes you might think are off-limits: alternative assets, private equity, private real estate, commodities, SPACs.  All are within your reach. Some pay income to generate those coveted double-digit income yields.  Let’s up your income with three CEFs you have probably overlooked.  The Special Opportunities Fund (NYSE: SPE) offers the opportunity to invest like an elite investor without being one. The fund invests in special acquisition investment companies (SPACs) – entities formed to buy other companies.  It also invests in underperforming CEFs. Acting as activists, the fund will pressure the underperforming management to raise shareholder value.  That said, Income is the name of the game, and the fund’s management team are masters of the game.  The Special Opportunities Fund pays distributions that generate an 11.5% yield on investment (the distribution having been increased this year). The shares trade at a 9% discount to net-asset value (NAV).  CEF number two, the Ares Dynamic Credit Allocation Fund (NYSE: ARDC), invests in a broad issue of senior loans, corporate bonds, and collateralized loan obligations (CLOs).  Senior is better than junior. Senior loans are first claimants on a company’s assets should a default occur. The CLOs themselves are diversified. They’re backed by a pool of debt, typically corporate loans.  The Ares fund is priced at a 10% discount to NAV. The fund pays a distribution that yields 10.25% after the distribution was increased in August.  Our third CEF, the Cohen & Steers Closed-End Opportunity Fund (NYSE: FOF), covers all the bases. The fund’s strategy is to buy other fund investments, CEFs and ETFs, that cover a wide swath of investment strategies. The Cohen & Steers fund owns 113 funds in total.  Low volatility is the upside to broad diversification, and so is high-yield income.  The Cohen & Steers fund pays a distribution to yield 10.2% on investment. The shares trade at a 4% discount to NAV, which is unusual. They typically trade a premium.  Here’s a final bonus: All three of these CEFs pay monthly income. The bills arrive monthly. Isn’t it handy when the high-yield income does too? Good Investing, [Ian Wyatt] Stephen Mauzy Contributing Editor P.S. In the coming days I expect that Tesla (NASDAQ: TSLA) CEO Elon Musk will reveal what he calls [The Secret Master Plan 3.0.]( This CONFIDENTIAL plan reveals exactly how Musk plans to launch the 4th Industrial Revolution. And it could send five undiscovered stocks soaring in the coming days. That’s why I’m hosting this webinar. Join me to discover: - Elon Musk’s Master Plan 3.0: inside the biggest and most ambitious strategic initiative for the next decade. - Why Elon Musk is copying The Rockefeller Playbook for complete domination. - The single biggest technology shift that’s behind the 4th Industrial Revolution. - Why buying TSLA stock at $800 per share could be a HUGE and costly mistake – that’s why Elon just SOLD $7 billion of his stock. - [The top 5 stocks to BUY now.]( These stocks will reap immense profits and deliver life-changing gains to early investors including YOU. I’m really hoping you’ll join me for the webinar. 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