This Cheap 5.3% Dividend Soars With Stocks (Perfect For 2026)

Market Outlook - The expectation for a strong year in 2026 is supported by data, predicting a roughly 12% gain for the S&P 500 [2][3] - The Atlanta Fed's GDPNow indicator suggests an impressive 5% GDP growth in Q4 2025, significantly higher than the 1% growth forecasted by most economists [9] Employment and Economic Indicators - The labor market shows signs of improvement, with the unemployment rate beginning to fall after peaking at the end of 2025, despite rising since early 2023 [11] - Private employment in the US has increased from 126.6 million pre-pandemic to 134.6 million post-pandemic, indicating a recovery in the job market [12] Investment Opportunities - Closed-end funds (CEFs) are highlighted as attractive investment options, particularly those trading at discounts to net asset value (NAV) [5][6] - Central Securities Corporation (CET) is noted for trading at a 17% discount to NAV, focusing on high-quality firms like Alphabet, Progressive Corp., and Amazon, while offering a 5.3% dividend [7][8] Earnings and Sales Performance - S&P 500 companies reported a 7.8% increase in sales in Q4, indicating a healthy economic environment [13] - CET has shown solid returns over the past three years, benefiting from market recovery and productivity gains from AI [14] Future Projections - The current discount of CET to NAV is expected to narrow, providing potential for capital appreciation alongside market growth in 2026 [15][16] - Management's commitment to translating portfolio gains into dividends suggests a favorable outlook for income and growth for investors [16]