Rarely do we get a buying opportunity in high-yielding closed-end funds (CEFs) like the one we have now. Thanks to the selloff, many CEFs trade at deep discounts and pay outsized yields upwards of 9% today.
With this market rally likely still in its infancy, we still have time to act here. But we don’t want to wait long, as this bounce has already started to whittle away CEFs’ discounts.
I’ve got three perfect funds for us to target below. This trio is intriguing because, taken together, they basically mimic an S&P 500 ETF, but with two key differences:
- They pay a 9.7% average dividend, so you’re getting more of your return in cash than you would if you bought an S&P 500 index fund (which would get you a mere 1.7% payout).