I usually write about the beauty of closed-end funds (CEFs) and how we can tap them for yields of 7% or more while also beating the S&P 500 index.
Today I want to talk about the dogs of the CEF world.
And there are plenty of dogs to talk about—they’ll kill your returns while promising big income streams that aren’t what they seem.
It’s a shame, because a lot of these rotten CEFs attract first-level investors who don’t look beyond the dividend yield. As a result, these folks often get buyer’s remorse when they discover those big dividends were actually hiding a grim—and riskier—reality.…