Dividends4Life: 3 High-Yield Closed-End Funds

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3 High-Yield Closed-End Funds

Posted by D4L | Monday, March 30, 2015 | | 0 comments »

Until a few years ago, nobody paid much attention to closed-end funds. There weren’t that many CEFs, and nobody really wanted to mess with something unusual. Times have changed, however, as the rise of exchange-traded products have made it easier to get into asset classes normally closed to the public. Closed-end funds have provided yet another way of getting into alternative investments, but they also offer a great way to enhance income generation. Most closed-end funds spin off some kind of distribution on a quarterly basis, and some even do so on a monthly basis.

CEFs are a bit better than ETFs, in my opinion, because they have more flexibility. They can own private company investments and can use leverage to earn a better return. In addition, they may appear to have higher expense ratios, but some analysts think that any use of leverage should be considered a reduction of investment income. Regardless, here are three particularly interesting closed-end funds that allow you to get into some otherwise difficult investment classes. And don’t worry, all come with high yields for the income crowd: Voya Prime Rate Trust (NYSE:PPR), Gabelli Convertible and Income Securities Fund (NYSE:GCV) and Gabelli Utility Trust (NYSE:GUT).

Source: InvestorPlace

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