I often talk about high-yielding closed-end funds (CEFs) that are great buys because, well, there are plenty of CEFs that are. Yes, even in unprecedented times like these!
That’s because the best CEFs offer three things we love:
- Big dividends, with an average yield of 7.8% across the asset class.
- Bargain valuations, with average discounts to net asset value (NAV, or the value of a CEF’s underlying portfolio) of 5%.
And how’s this for a stat …
- Proven performance, with 94% of CEFs posting positive returns (with dividends reinvested) over the last decade. Ninety. Four. Percent.
Still, every once in a while, a CEF comes across my desk that’s an obvious one to sell (or avoid if you don’t already hold it).… Read more
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