Invest for monthly income with closed-end funds (CEF) that offer a 10% yield.

1. 08/09/2011
admin
Market Update - More CEFs with High
Yields
I
repeat the advice I gave you last week: we stay
the course and move as soon as trading stabi-
lizes. This is a seriously oversold market. Since
there are no further shoes to drop after the down-
grade, we will begin to see some amazing buying
opportunities emerge later this week, along with
options plays providing risk protection. Once again,
the market reaction to the turmoil has depressed
forward estimates of market demand. That, in turn,
has further driven down stock share values. Click to enlarge
This is not to say that the market will not go lower.
However, you should create a watch list of securities
you want to buy when the dust settles. This will
create an opportunity to pick up monthly dividend
payers at a lower share price and higher yield. Of
course, you should dollar-cost average your buys
so you don’t get burned by market volatility.
The one advantage to higher volatility is more op-
tion premium. If you are looking at covered calls,
you can sell in-the-money calls for more protection
unless you want to keep the stock in your portfolio.
If your portfolio stocks have pulled back then you
can reset your strike prices to continue to collect
monthly income from option premiums.
Here is an updated list of CEFs that pay monthly
income:
joliprint
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