Today Im going to show you how one savvy buy can help you turn $100K into a $500,000 windfall. Plus, youll automatically build yourself a tidy monthly income streamIm talking $2,700+ herewithout lifting a finger.
Thats enough for many folks to retire on.
At the center of it all is a little-known group of investments called closed-end funds (CEFs)and one fund, in particular, whose name, dividend and incredible track record Ill reveal in a moment.
For now, here are the two key things you need to know about CEFs: first, they pay huge dividends (6.9%, on average, with some paying well into the double digits). Compare that to the measly 1.8% you get from the typical S&P 500 stock.
Second, many of these income plays also clobber the market. And even those that only match (or even slightly trail) regular stocks are still better buys than your average blue chip. Because while the typical S&P 500 stock pays you mainly in capital gains, which, lets be honest, can be wiped out in a day, CEFs high dividends mean you get a big slice of your return in cash.
That brings me to the fast-rising CEF I want to show you todaythe Cohen & Steers Quality Income Realty Fund (RQI), a US real estatefocused fund that yields 6.3% (paid monthly, no less), has obliterated the market andthanks to plunging interest rates (which will draw more income-starved investors in)has plenty of upside left!
Lets take a look at just how potent a wealth generator this fund has been in the last decade. Then well dive into the critical (and totally ignored) edge that sets it up for more gains in the years to come.
RQI Laps the Market
As you can see above, this fund has given investors more than double the return they wouldve gotten with the S&P 500 since the financial crisis.
Put another way, if youd invested $100,000 in the average S&P 500 stock a decade ago, youd now have $256,700an impressive return, to be sure. But if youd put your $100K in RQI, youd now have $517,000, five times your original stake!
At a 6.3% current yield, your $517K would net you $2,731 per month in dividends today, a bit above the median US personal income of $2,651 and enough for folks to retire on in many parts of the country.
That just goes to show you how one strong outperformer (with a sizeable dividend) can reshape your retirementand help you clock out on just $100K.
A Management Team Thats Second to None
RQIs secret weapon is its whip-smart management team, which youll hire to work for you if you buy this fund today.
That would be New York-based Cohen & Steers, which has been managing real estate portfolios for clients for over 30 years. The firms expertise and deep connections in the real estate business have been major drivers of the rock-steady returns theyve delivered.
The thing I like best about them? Cohen & Steers isnt afraid to go against the herd when they see an opportunity. To see what Im getting at here, lets go back a decade, to when America was just starting to recover from the worst economic collapse in 80 yearsa collapse caused by real estate!
Cohen & Steers, through RQI and its other real-estate CEFs, pounced, jumping into a market that had seen prices crash 20% to 60% during the crisisand because so many investors were shell-shocked by real estate a decade ago, they C & S bought with little competition.
Over the following decade, the market realized its mistake and bid up both the value of RQIs portfolio and the value of RQIs shares on the open market. In fact, the fund and another Cohen & Steers CEF, the Cohen & Steers REIT & Preferred Income Fund (RNP) led the pack among real estate CEFs. (RQI is in orange below; RNP is in red.)
Crushing the Competitionthe Contrarian Way
So where does this leave us? With a fund thats crushed the competition (and the market) since the financial crisis; is run by one of the savviest CEF shops out there; boasts a steady 6.3% dividend paid monthly; and still has plenty of upside.
This Is Like Buying RQI in 2009 (but With a Huge 8.7% Dividend!)
Theres just one missing element with RQI: the fund trades around the value of its portfolio (or net asset value, as they say in CEF-land), and I like to buy CEFs that trade at a discount.
Reason being, we can grab huge capital gains (to go along with our high dividends) as these discounts dissolve, catapulting our funds to double-digit gains as they do!
Thats whats in the cards for the 4 CEFs I like better than RQI right now. Like RQI, all 4 are set to get a big lift as the Fed cuts rates.
But thats just the start. Because unlike RQI, all 4 trade at ridiculous discounts to NAV.
The bottom line? Im calling for 20%+ price upside from each of these 4 stout income plays in just the next 12 months!
And lets talk income: RQIs 6.3% payout is great, but it pales next to the 8.7% average yield my 4 picks payand one member of this quartet yields an incredible 10.7% as I write this.
The latest pullback has made these funds even better deals than they were a couple weeks ago, making now the perfect time to buy.
Dont miss out. Click here and Ill give you the full story on each of these 4 income (and gain) powerhouses: name, ticker, buy-under price, dividend history and more.