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
Related Articles:
- Why We Are Dividend Growth Investors
- 6 Dividend Growth Stocks With Very Little Debt
- What Determines A Dividend Stock's Yield
- Warren Buffett's Secret To 50% Returns
- 9 High-Yield Energy Stocks Growing Their Dividends
Dividend Growth Stocks News
- Top European Dividend Stocks To Watch In May 2025 - Yahoo Finance - 5/14/2025
- 2 Dividend Stocks That are Holding Their Own in 2025 - AOL.com - 5/17/2025
- Tesla Started the Ball Rolling and It Could Mean a 9,000% Growth Driver for These 3 Dividend Stocks - The Motley Fool - 5/17/2025
- The Smartest Dividend Stocks to Buy With $5,000 Right Now - AOL.com - 5/14/2025
- 2 Dividend Stocks That are Holding Their Own in 2025 - 24/7 Wall St. - 5/17/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.