Equities are climbing higher - but market breadth is weakening. Most advances stem from a narrow segment of the market (tech stocks, we mean you).

This trend favors contrarian investors, uncovering strong dividend bargains in overlooked sectors. We spotlight three undervalued closed-end funds (CEFs) with yields reaching 11.8%.

These selections create a compact "mini-portfolio" featuring established blue-chip names (excluding tech), fixed-income assets and infrastructure investments. Two deliver monthly distributions as well.

Begin With Equities - Enter the Gabelli Equity Trust (GAB)

GAB distinguishes itself not just with its robust 10.6% yield: It is among the rare US equity CEFs where top holdings avoid heavy tech concentration.

Texas Instruments (TXN) appears, yet the majority draw from financials such as Mastercard (MA), and industrials including aircraft component producer Curtiss-Wright (CW), Deere & Co. (DE) and UK firm Rolls-Royce Holdings.

Assembling a low-tech portfolio proves challenging today, as information technology and communication services - encompassing Alphabet (GOOGL), Meta Platforms (META) and Netflix (NFLX) - comprise 47% of the S&P 500.

GAB's sector tilt aligns with its manager, value specialist Mario Gabelli, a follower of Warren Buffett's principles.

GAB presents a compelling value proposition in dual ways: It has lagged the broader market this year, particularly from late March (shown in purple below), coinciding with tech's rise that lifted the S&P 500 (in orange):

GAB Lags as Tech Propels the S&P 500

This underperformance signals a buying opportunity. Additionally, GAB trades at a 3.6% discount to net asset value (NAV), contrasting its 10% premium at year-start:

GAB's Discount Widens - Primed for Recovery

The expanded discount stems from a recent rights offering, allowing shareholders to buy more shares below market value.

With the offering complete, dilution effects should fade, narrowing the discount - particularly as investors diversify beyond tech.

Combined with its yield - tenfold that of the S&P 500 - GAB serves as an appealing alternative to index funds. Purchasing now secures its generous payouts immediately.

Turn to the "Bond God" for Fixed-Income Expertise

For bonds, we rely on Jeffrey Gundlach, the "Bond God," who oversees the DoubleLine Income Solutions Fund (DSL). This 11.8%-yielding monthly payer is recommended in my Contrarian Income Report.

Gundlach pursues yield flexibly, blending high-yield corporates, emerging-market debt and select mortgage-backed securities. (Post-2008 regulations have fortified these holdings.)

He employs about 21% leverage for enhancement - ideal for declining rates (anticipated as AI moderates wage pressures) without excessive risk if rates rebound.

This strategy has outperformed the State Street SPDR Bloomberg High Yield Bond ETF (JNK) over five years.

The Bond God Outpaces His Benchmark

Nevertheless, DSL trades at a 4% NAV discount, down from a 1.4% premium in September. This mispricing invites entry.

Build Steady Income With This 11% Monthly Yielder

The NXG NexGen Infrastructure Income Fund (NXG) embodies a classic "pick-and-shovel" AI strategy. Managers avoid stock-picking AI winners.

They provide essentials like power, engineering and semiconductors that AI giants require - plus traditional projects such as roads, airports and bridges:

Source: NXG NexGen Infrastructure Income Fund fact sheet

Each AI query from tools like ChatGPT, Claude or Gemini spikes energy demand. Renewables expand, but natural gas remains vital for reliability. Thus, top holdings include pipeline firms Energy Transfer LP (ET) and ONEOK (OKE).

Infrastructure's neglected facet lies in US decay of roads, bridges and highways. Government commits $5.4 trillion from 2024-2033 per the American Society of Civil Engineers (ASCE).

Yet a $3.7 trillion shortfall persists, demanding further investment.

NXG positions for this via holdings like builder MasTec (MTZ) and engineering firm Argan (AGX) for utilities and industrials. Utilities gain too, boosting Constellation Energy (CEG) and GE Vernova (GEV).

This focus has propelled NXG (purple below) past the S&P 500 (orange) over five years:

NXG Capitalizes on Infrastructure Surge

Still, valuation reversed: From a 16% premium last year to a 4.6% discount post-rights offering.

Amid vast infrastructure needs (physical and digital), this discount offers entry as proceeds deploy.

Overall, this trio forms a mini-portfolio that:

Transcends tech (capturing AI tailwinds indirectly).
Incorporates premier blue chips, bonds and infrastructure.
Delivers an average 11% yield.
Trades at discounts.

This mix shines in a speculative market. Discounts likely won't linger.

Launch With These Three - Then Grab This 11% Monthly Gem (Cheap Now)

Two CEFs pay monthly. Complete the set.

Add my top monthly yielder, offering:

11% yield with payout growth history.
Monthly dividends.
Steep discount, and
A manager surpassing benchmarks long- and short-term.

Its discount and yield provide low-risk appeal amid volatility.

Reach out for details on this 11% play, including name and ticker in a free Special Report. Secure it now for upcoming monthly payouts.