One thing that’s clear about the next few years? Volatility is likely to tick up, especially with stock valuations stretched. Now more than ever, we need to be diversified, so we’re set up to offset any shocks to any one sector while we collect our high closed-end fund (CEF) dividends.
So that’s what we’re going to do today. And CEFs are the best tool to do it. Through just three funds, we’ll give ourselves access to some of the top blue-chip stocks, real estate investment trusts (REITs) and high-yield bonds out there.
Better still (for safety, as well as income), we’ll get a big slice of our return as dividends, as these three funds pay an 8.8% average yield between them. That’s about seven times what the average S&P 500 stock pays. Plus, these yields are sustainable.
This post originally appeared at Contrarian Outlook.