Author: Michael Foster, Contrarian Outlook

A good call here is to buy the fund before other investors realize they’ve overlooked it and buy in, causing the discount on its big-yielding, high-quality portfolio to shrink.

It’s the kind of fund that investors can ignore only for so long — and when they come back aboard, its discount is likely to narrow (taking its share price with it.)

It’s gotten very easy for the fund to maintain its dividend, but instead of pricing shares at a premium, the discount is getting wider!

Let’s go ahead and build ourselves an “instant” income portfolio throwing off a reliable high yield.

We’re facing a “2016-like” moment in bonds these days, meaning anyone who buys now has a shot at locking in 10%+ dividends for decades — and a shot at price upside, too.