World News – CA – How to buy Apple at October prices, with an 82% dividend payout figure

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I definitely hope you haven’t heard the nervous Niels who have asked you to withdraw your money from stocks before the election since October 30, the S&P 500 has jumped by more than 5%, as of this writing

And do you remember tech stocks, the sector that everyone seemed to leave to die a few days ago? They are up about 7%, according to Invesco QQQ Trust (NASDAQ: QQQ) technology benchmark

This is especially painful if you were a dividend investor if you sold only a few days ago, you are now compelled to repurchase with higher prices and lower returns! (This, by the way, is the reason my colleague Brett Owens and I have been knocking the tables on unpopular tech stocks in recent days. If you follow our advice, you’re doing a great job)

Since the big show on QQQ is now a thing of the past, we need to take a different path if we want to get back to technology now (or, if you continue for the past few days, improve your tech earnings and profits)

Fortunately, there’s an investment that allows us to buy the best tech names for October prices – and increase our profits 5X (and maybe more!), too: Closed-End Funds (CEFs)

If you buy a QQQ, you get an exchange-traded fund (ETF) that holds 100 shares in the index the fund tracks, which leans toward technology and includes the big FAANG players you know well: Facebook (NASDAQ: FB) and Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), Google (GOOG and NASDAQ: GOOGL) are among them but if you buy a dollar of QQQ you get 1 dollar of those stocks – ETFs trade pretty much Basic value of the shares held

The CEFs are different; there are far fewer of them (the CEF market size is about 7% of the ETF world size), so they are often overlooked but CEFs have a strong following among savvy investors who know their core value, especially when it comes to the relationship between net CEF asset value and market price

Don’t get too busy with jargon here; It’s really very simple.CEFs have a fairly fixed number of shares, while ETF issuers can release new shares of their money well at any time. This means that CEF shares can rise even if the actual value of their portfolio remains (net asset value, or NAV). As it is in such a situation, the market price can rise higher than the NAV, which causes the CEF to trade at a premium

Premiums can be huge realizing a corporate & income opportunity from PIMCO (NYSE: PTY), which is now traded at a premium of 28% and traded higher – at a premium of over 30% on NAV!

Also note that PTY traded less than the net asset value of its portfolio in March although that was rare for PTY, it is common on CEFs that a lot of CEFs are trading at discounts (at market price less than net asset value), which means That you can buy their assets for less than they are actually worth.

Then, when the CEF gets more interest and trades at a premium, you can sell for a profit if the net worth of the portfolio goes up, this will be a double gain plus you will keep all the profits that the CEF pays

And speaking of dividends, the payout for CEFs is huge, with a typical CEF now producing 74% that’s 46 times more than you get from a S&P 500

So, if we can find the CEF trading at a big discount and paying good dividends, we can have a large passive income stream as well as today’s tech darlings at yesterday’s prices and an opportunity for future capital gains

Fortunately, such a CEF exists as the Columbia Seligman Premium Technology Growth Closed Fund (NYSE: STK) has a host of powerful tech companies, including Apple, Microsoft (NASDAQ: MSFT), and Broadcom (NASDAQ: AVGO)

This portfolio is trading at a 29% net asset value discount as I write this, which means you can get very close to where the tech sector traded before the election after that, you can wait for the fund to trade at a premium, as it happened in June, When fund premium rose above 10%

As you can see, the fund’s premium has declined in recent months as CEF investors worried that the technology sale was due and then when the technology started to fall below its 52-week high in September and October, the fund traded at a discount for the first time since April

That makes it a great buy now, and a great fund to keep – and keep for get rich 82% earnings – until that discount reverts back to STK Sports premium 90% of the time over the past decade

There is one more thing about this unusual time period that we have to remember: Historically, stocks are gaining ground from Election Day until the end of the year

It’s a phenomenon observed after elections for decades, including in 2016, when stocks fell just before the vote and then rose towards the end of the year.

The typical investor will try to take advantage of this pattern by purchasing an ETF such as the SPDR S&P 500 ETF (NYSE: SPY), a major stock index tracker

But as I just showed you, following this strategy means you’ll never get a discount – and your payouts are pathetic, too! Spying 1 results in only 6% as I write this

This is where I now come in for the top 4 CEFs I buy They produce a whopping 8 1%, on average, and they trade at huge discounts – so huge that I’m calling for a quick 20% increase from each of these 4 dynamic funds

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In other words, benefit as those huge discounts disappear and you are ready to make a profit because the bull market is pumping in their portfolio value too! This is a rare double win and you can make it triple, thanks to the huge cash payments of these funds

Disclosure: Brett Owens and Michael Foster are two income contradictory investors looking for undervalued stocks / funds across the US Markets Click here to see how they leverage their strategies in the latest report, « 7 Big Profit Growth Credits for a Safe Retirement » >

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World News – California – How to buy Apple at October prices, with an 82% dividend payout figure
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SOURCE: https://www.w24news.com

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