4 Smart Retirement Buys for 7.2% Dividends and Big Gains

Each of these picks is a “closed-end fund,” a unique type of fund that has a few key advantages over more familiar mutual funds and exchange-traded funds. A big one is that CEFs can—and very often do—trade on the market at a price that is below the actual market price of all of the assets inside the CEF. How is this possible? It boils down to this: CEFs set how many shares are in the fund when they do an initial public offering and don’t release new shares in the future. That weird mechanism means funds will often trade for less than their NAV—and those discounts can be really big.

All you need to do is buy shares in the RMR Real Estate Income Fund (NYSEAMERICAN:RIF), a CEF that’s been around since 2005 and not only survived the bursting of the 2008–09 real estate bubble but has also been paying out massive dividend checks ever since. The Nuveen Quality Municipal Income Fund (NYSE:NAD) is not only a great option because of its 5.7% dividend yield but also because of the diversification and low volatility it provides. That’s why you should take a serious look at the AGIC Equity and Convertible Income Fund (NYSE:NIE). Not only can we get a 7.3% dividend by doing this with the Western Asset High Yield Defined Opportunity Fund (NYSE:HYI), but we can also dip our toes in this asset class at a massive 10.2% discount.

Source: InvestorPlace

Related Articles:
- Early Warning Signs of 5 Dividend Cut
- The Best Dividend Stocks In The World
- Never Fall In Love With A Stock
- My 4 Largest Dividend Growth Stock Positions Have Double-Digit Lifetime Returns
- 10 Great Dividend Stocks With 50+ Years of Consecutive Increases