Dividends4Life: Now Is A Golden Opportunity To Buy Dividend Stocks

Dividend Growth Stocks News

There’s no doubt in my mind: five years from now we’ll look back at this time and say it was a golden opportunity to buy dividend stocks. Those who bought in will be sitting on big gains (and income streams!). Those who sat on their hands will kick themselves. I don’t want you to be in that latter group.

The CEF I want to show you today, the Nuveen S&P 500 Buy-Write Income Fund (NYSE:BXMX), with its huge 6.9% dividend, nicely demonstrates the advantages a CEF holds over a comparable ETF. BXMX has a couple strengths that support its high payout: first, it holds S&P 500 firms like Microsoft (NASDAQ:MSFT), Visa (NYSE:V) and Coca-Cola (NYSE:KO)—so we start off by tapping into the general market strength you see in the chart above. Second, BXMX “writes” call options. In other words, it sells the right for buyers to purchase stocks it owns at a fixed price and time in the future in exchange for a cash payment today.

Source: Investing.com

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