One of the so-called “rules” of income investing is that you can get a high dividend or a sustainable dividend from a stock or fund—but not both.
And to be fair, that is true of some investments. But there are plenty of exceptions, too, chief among them an asset class that sports a little-known “trick” that gives us blockbuster 9% dividends that are more than sustainable over the long run.
The CEF Secret
That asset class would be closed-end funds (CEFs), and the “trick” ties into the fund’s discount to net asset value (NAV, or the value of the investments in the fund’s portfolio).… Read more