* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Wednesday, July 16, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Rough times for broadcast networks illustrate changing media landscape – New Haven Register

    Broadcast Networks Confront Turbulent Times in a Rapidly Changing Media Landscape

    Black River Entertainment Adds Traci Hite As Director Of Promotion, Southeast – MusicRow.com

    Black River Entertainment Welcomes Traci Hite as New Director of Southeast Promotion

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Kehoe repeals paid sick leave, allows several counties in the Ozarks to have entertainment districts in bill signings – KY3

    Kehoe repeals paid sick leave, allows several counties in the Ozarks to have entertainment districts in bill signings – KY3

    Emily Deschanel was scolded during “Bones” season 1 for being ‘late and unprepared’: ‘I was just beside myself’ – Yahoo

    Emily Deschanel was scolded during “Bones” season 1 for being ‘late and unprepared’: ‘I was just beside myself’ – Yahoo

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Victorville’s new gunfire-detecting technology already making strides, city says – NBC Los Angeles

    Victorville’s New Gunfire-Detecting Technology Is Already Making a Difference, City Officials Say

    Guest columnist: China cutting corners on technology – The State Journal

    China’s Rapid Tech Advances Spark Worries About Cutting Corners

    Sentrycs’ Cyber Over RF technology integrated into Rafael’s combat-proven Drone Dome system – Defence Industry Europe

    Sentrycs’ Cyber Over RF Technology Boosts Rafael’s Battle-Tested Drone Dome System

    Nordic Air Defence raises $3 million to expand operations and advance drone defence technology – Defence Industry Europe

    Nordic Air Defence Lands $3 Million to Transform Drone Defense and Supercharge Operations

    China’s energy dominance in three charts – MIT Technology Review

    How China Is Powering Its Energy Dominance: A Visual Breakdown

    Meta Acquires AI Startup PlayAI to Enhance Voice Technology Capa – GuruFocus

    Meta Acquires AI Startup PlayAI to Revolutionize Voice Technology Capabilities

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Rough times for broadcast networks illustrate changing media landscape – New Haven Register

    Broadcast Networks Confront Turbulent Times in a Rapidly Changing Media Landscape

    Black River Entertainment Adds Traci Hite As Director Of Promotion, Southeast – MusicRow.com

    Black River Entertainment Welcomes Traci Hite as New Director of Southeast Promotion

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Kehoe repeals paid sick leave, allows several counties in the Ozarks to have entertainment districts in bill signings – KY3

    Kehoe repeals paid sick leave, allows several counties in the Ozarks to have entertainment districts in bill signings – KY3

    Emily Deschanel was scolded during “Bones” season 1 for being ‘late and unprepared’: ‘I was just beside myself’ – Yahoo

    Emily Deschanel was scolded during “Bones” season 1 for being ‘late and unprepared’: ‘I was just beside myself’ – Yahoo

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Victorville’s new gunfire-detecting technology already making strides, city says – NBC Los Angeles

    Victorville’s New Gunfire-Detecting Technology Is Already Making a Difference, City Officials Say

    Guest columnist: China cutting corners on technology – The State Journal

    China’s Rapid Tech Advances Spark Worries About Cutting Corners

    Sentrycs’ Cyber Over RF technology integrated into Rafael’s combat-proven Drone Dome system – Defence Industry Europe

    Sentrycs’ Cyber Over RF Technology Boosts Rafael’s Battle-Tested Drone Dome System

    Nordic Air Defence raises $3 million to expand operations and advance drone defence technology – Defence Industry Europe

    Nordic Air Defence Lands $3 Million to Transform Drone Defense and Supercharge Operations

    China’s energy dominance in three charts – MIT Technology Review

    How China Is Powering Its Energy Dominance: A Visual Breakdown

    Meta Acquires AI Startup PlayAI to Enhance Voice Technology Capa – GuruFocus

    Meta Acquires AI Startup PlayAI to Revolutionize Voice Technology Capabilities

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

These 7% Dividends Prove This Investment ‘Rule’ Is Total Rubbish

February 18, 2024
in Business
These 7% Dividends Prove This Investment ‘Rule’ Is Total Rubbish
Share on FacebookShare on Twitter

Businessman uses a wheelbarrow to pour stacks of money banknotes into the cliff

getty

Don’t fall into the trap of thinking you can’t beat the market. It’s total nonsense—and that goes double if you look outside stocks, to other assets.

Consider preferred stocks for example—they’re “bond-stock” hybrids that trade on an exchange, like stocks. But like bonds, they trade around a par value.

The best part is the income. Our favorite way to buy preferreds—through actively managed (we’ll come back to that in a second) closed-end funds (CEFs)—gets us yields of 7%+.

And select preferred-stock CEFs trade below their net asset value (NAV, or the value of their portfolios) today—with some of those discounts reaching well into double-digits.

Finally, preferred stock CEFs beat their benchmarks all the time, a fact we’ll see in action momentarily.

Preferred-Stock CEFs: Proven Benchmark Beaters (With Big Yields, Too)

Academics call the idea that you can’t beat the market the “efficient market hypothesis.” In 2013, Eugene F. Fama, the economist who first made the hypothesis in its modern form, won the Nobel prize for his work on this theory. He won it alongside Lars Peter Hansen, who did a lot of the heavy math supporting Fama’s hypothesis.

Here’s where this story gets weird. Fama and Hansen shared the Nobel prize with a third winner that year, Robert Schiller, the Yale economics professor who has argued markets are not efficient and often create bubbles, as we saw during the dot-com crash of the 1990s and the subprime-mortgage crisis of the 2000s.

How can economists who ardently disagree with each other win the same esteemed prize in the same year?

It shows just how messy investing can be. In fact, markets aren’t fully efficient, and we often see fund managers beat their benchmarks for a long period of time. Preferred-stock CEFs are a perfect example of this.

If we look at those that have had a lifespan of a decade or more, they’ve all beaten the passive iShares Preferred & Income Securities ETF (PFF) in the past decade.

Preferred Stock CEFs Outperform

Ycharts

I know there’s a lot going on in this chart, but we can see that PFF, at the bottom, is far behind even the worst-performing of the preferred-focused actively managed CEFs, the Nuveen Preferred & Income Opportunities Fund (JPC), which had a much greater 62.9% return.

At the top end, the John Hancock Premium Dividend Fund (PDT) nearly doubled the index’s performance.

Also, it’s worth reiterating the massive income streams these funds offer, with yields of 8.5% on average, versus PFF’s 6.5%. And then there are those discounts—another inefficiency we contrarians can exploit.

Preferred Stock CEFs

Contrarian Outlook

Of these preferred-stock focused CEFs, over half sport discounts, and the Flaherty & Crumrine Preferred Securities Income Fund (FFC) has the deepest discount of them all, with a market price over 11% below its portfolio value.

That’s probably because of its relatively low (for a CEF) 6.9% dividend yield. But it also means investors who buy now and wait for the market inefficiency to end can earn some capital gains on top of that impressive income stream.

And don’t think FFC won’t trade at a premium eventually: it has done so many times in its more than 20-year history. As recently as 2021, the fund was trading for more than its assets were worth.

For a bigger yield, look to the John Hancock Premium Dividend Fund (PDT) and its incredible 9.1% payout, which also trades at a rare discount.

PDT once traded at a more than 20% premium, and double-digit premiums haven’t been unheard of in recent years. The recent selloff has driven it to its deepest discount range in a decade, and we can see in the chart above that this discount is narrowing.

Of course, we’ve seen head fakes before, like at the end of 2023, so PDT may revert back to a double-digit discount again. But that would be a reason to buy more. Just look at what would’ve happened if you’d bought four months ago, the last time PDT’s discount fell to double digits:

PDT Total Returns

Ycharts

All of this while collecting a 9.1% dividend yield! If that’s not reason to go from passive to active, then I don’t know what is.

Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great income ideas, click here for our latest report “Indestructible Income: 5 Bargain Funds with Steady 10.9% Dividends.”

Disclosure: none

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Forbes – https://www.forbes.com/sites/michaelfoster/2024/02/17/these-7-dividends-prove-this-investment-rule-is-total-rubbish

Tags: businessdividendsThese
Previous Post

Navalny Spokesperson Says Putin Foe ‘Murdered’—Claims Russia Keeping Body From Family

Next Post

Donald Trump Fined $355M for Overvaluing His Real Estate and Other Assets

Victorville’s new gunfire-detecting technology already making strides, city says – NBC Los Angeles

Victorville’s New Gunfire-Detecting Technology Is Already Making a Difference, City Officials Say

July 16, 2025
Sinclair Continues Expansion of AMP Media Podcast Slate with New Local Sports Podcasts – Sinclair, Inc

Sinclair Continues Expansion of AMP Media Podcast Slate with New Local Sports Podcasts – Sinclair, Inc

July 16, 2025
Birds documenting the Anthropocene: Stratigraphy of plastic in urban bird nests – Hiemstra – 2025 – Ecology – ESA Journals

Birds documenting the Anthropocene: Stratigraphy of plastic in urban bird nests – Hiemstra – 2025 – Ecology – ESA Journals

July 16, 2025
The 100-year journey from quantum science to quantum technology – Phys.org

The 100-year journey from quantum science to quantum technology – Phys.org

July 16, 2025
Ten Cosmic Secrets That Science Cannot Fully Explain – Listverse

10 Mind-Blowing Cosmic Mysteries Science Still Can’t Explain

July 16, 2025
Lifestyle Campers’ ‘Hypercamper’ Touts Butler’s Pantry – RV PRO

Lifestyle Campers Unveils the Ultimate ‘Hypercamper’ Featuring a Luxurious Butler’s Pantry

July 16, 2025
Column | Trump casts a growing shadow on the 2026 World Cup – The Washington Post

How Trump’s Influence Is Looming Over the 2026 World Cup

July 16, 2025
JPMorgan CEO Dimon’s comments highlight steady caution on US economy – Reuters

JPMorgan CEO Dimon Urges Steady Caution Amid Uncertain US Economic Future

July 16, 2025
Rough times for broadcast networks illustrate changing media landscape – New Haven Register

Broadcast Networks Confront Turbulent Times in a Rapidly Changing Media Landscape

July 16, 2025
Anthem member expresses relief after new deal with MU Health Care – KOMU 8

Anthem Member Shares Relief Following New Agreement with MU Health Care

July 16, 2025

Categories

Archives

July 2025
MTWTFSS
 123456
78910111213
14151617181920
21222324252627
28293031 
« Jun    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (723)
  • Economy (746)
  • Entertainment (21,633)
  • General (15,926)
  • Health (9,784)
  • Lifestyle (754)
  • News (22,149)
  • People (748)
  • Politics (757)
  • Science (15,965)
  • Sports (21,245)
  • Technology (15,730)
  • World (730)

Recent News

Victorville’s new gunfire-detecting technology already making strides, city says – NBC Los Angeles

Victorville’s New Gunfire-Detecting Technology Is Already Making a Difference, City Officials Say

July 16, 2025
Sinclair Continues Expansion of AMP Media Podcast Slate with New Local Sports Podcasts – Sinclair, Inc

Sinclair Continues Expansion of AMP Media Podcast Slate with New Local Sports Podcasts – Sinclair, Inc

July 16, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version