Back Up the Truck On This 7.8% Dividend as Rates Rise

This latest shift toward interest rate hikes has sent income investors into a tizzy. That's great for us, because they're tossing out one terrific fund kicking out a 7.8% dividend that's grown . This smartly run corporate-bond fund is now on the table for 11.9% below the value of its portfolio. That not only positions this fund (a closed-end fund, or CEF, to be exact) for future upside--it helps cushion its portfolio, letting us collect its 7.8% payout in peace as the Fed raises rates. I know that may sound strange: Usually higher rates are bad for bonds, especially for funds chock full of bonds that pay out "old" rates that may be lower than the "new" interest rates likely to come. But here we are.