After all, this overdone fear mongering has handed us an opportunity to “lock in” bigger dividend yields than we’ve been able to grab in years. Stock-focused closed-end funds (CEFs), as many of these income plays are paying Treasury-doubling 10% yields now. This means Americans aren’t just spending more because of inflation; they’re spending more because they have more money to spend and they’re confident in the economy. Americans Are Getting Used to “Higher for Longer” Interest RatesRecently, Treasury Secretary Janet Yellen said banks, businesses and households are fine with higher interest rates. This one yields 10.4% now, and it checks the past-performance box, too, delivering a 184% return in the last decade, with almost all of that in dividend cash.

Source: Forbes October 15, 2023 01:34 UTC