From Grant Wasylik, editor, The Palm Beach Letter: Our September 2014 recommendation just announced an over-4% special dividend payable on December 31.
Regular Palm Beach Letter (PBL) subscribers know we’ve been harping on our “Special Dividend” theme all year. It’s a way for us to collect “stealth” income. You see, popular financial websites like CNBC, MarketWatch, and Yahoo Finance don’t report special dividends on their main “quote” pages.
But we do hundreds of hours of research to uncover these consistent special-dividend payers “hiding in plain view.” Few investors know about these… and that gives PBL subscribers near-exclusive access to these secret yields of 5-10%.
So far this year, we’ve banked five special dividends. We’ll receive three additional ones before 2015 rings in… including one on New Year’s Eve.
This special dividend payment is unique. It’s not from a stock. Instead, it comes from a closed-end fund.
[A closed-end fund is a publicly traded investment company. It raises a fixed amount of capital only once through an initial public offering (IPO). The fund is then structured, listed, and traded like a stock on a stock exchange.]
When we recommended this fund, we told you a year-end special dividend was coming. Less than three months later, we got our announcement. This fund declared its year-end total distribution on December 1. On a per share basis, here’s the breakdown:
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Regular monthly dividend of $0.0250
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Short-term capital gain of $0.0026
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Special dividend of $0.3340.
With the fund trading a little under $8, this total distribution yields 4.7%. And the special dividend alone yields 4.3%. But nothing here is out of the norm…
This closed-end fund—including this year’s “hidden” payment—paid special dividends 11 of the past 12 years. For 2014, this fund’s secret total yield (at today’s prices) will be just shy of 9%.