This 8%-Yielding Fund Soared 260% (It’s Just Getting Started)

This market’s insistence on falling—even though earnings are soaring—has opened up a strong buying opportunity for us dividend investors. And we’re going to tap it to grab a rare “double discount” on an 8%-yielding closed-end fund (CEF) that no one’ s noticed. This income-and-growth machine has soared 260% since inception and has the potential to crush stocks this year, thanks to its undeserved markdown. More on that below. First, let’s talk about this stock-market disconnect, because recent declines have yanked the S&P 500’s price-to-earnings ratio down to 23.8. That may not sound cheap, but it’s far below last year at this time, when valuations hit a nosebleed 43.7.… Read more