Dividends4Life: 5 CEFs Yielding 5%-Plus

5 CEFs Yielding 5%-Plus

Posted by D4L | Thursday, February 13, 2014 | | 0 comments »

Unlike exchange-traded funds (ETFs) and mutual funds — which have a creation and redemption mechanisms — CEFs trade on the equities markets with a fixed number of shares. After their IPO’s, CEFs can and often do trade for discounts to their net asset values (NAV), allowing investors to pick up stocks and bonds for pennies on the dollar. Perhaps more importantly for income seekers, due to the use of leverage, many CEFs pay above-average dividends — to the tune of 5 to 8%. Here are some of the best bargains in CEFs today:

MFS Multimarket Income Trust (MMT) - Discount to NAV: 11.96% - Distribution Yield: 6.76%. BlackRock Corporate High Yield Fund (HYT) - Discount to NAV: 7.11% - Distribution Yield: 7.86%. ING Prime Rate Trust (PBR) - Discount to NAV: 3.12% - Distribution Yield: 6.41%. Nuveen Municipal Value Fund - Discount to NAV: 2.69% - Distribution Yield: 4.73%. PowerShares CEF Income Composite ETF (PCEF) - Average Discount to NAV: 7.35% - Distribution Yield: 8.3%.

Source: InvestorPlace

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