Author: Michael Foster, Contrarian Outlook

As I write, the fund trades at $9.40, but its assets are $11.86. Factoring its dividend yield, fees and discount, it has a negative ownership cost! This is not just a market inefficiency, it’s an illogical mispricing.

Imagine a fund yielding 16.2% that’s likely to keep that high payout steady for years and years. I know it sounds unthinkable, yet we have just such a fund sitting in front of us today — ripe for buying at a discount, no less.

At the end of the day, it comes down to these four key pillars: pricing, dividend sustainability, management and portfolio.

I’m expecting an overall 10% annualized yield from this one payout alone.

Not only has it been a powerful profit generator for shorter-term traders— it’s delivered the goods for long-term income investors, too.