This 8.3% Dividend Trades at a "Double Discount" (Thank the Bond Panic)

We contrarians love it when the crowd mislabels a stock and tosses it overboard. We really love it when this happens to the same stock twice! Today we're going to look at a perfect example: an 8.3%-paying closed-end fund (CEF) most people treat as a bond proxy. But it's much more than that. That's strike one for the mainstream crowd. And it's the first part of our setup here. Next, when investors aren't slapping that label on this fund, they're mistakenly referring to it as a utility fund. Strike two! When a situation like this crops up, we essentially get a deal on top of a deal . In this case, the result is a chance to buy a "beautifully boring" 8.3% dividend (paid monthly, no less) for 95 cents on the dollar.