Closed-end funds, a tremendous fund-type has rolled around in recent years. Choose any form of investment, asset class and level of diversification … a CEF can get you involved in just about any form of security that exists. Close-ended funds are better than mutual funds. You don’t have to worry about the closing price because you can trade a CEF instantly. The disadvantage to closed-end funds is that their expense ratios may be high compared to their exchange traded fund cousins — around 1.45%. However, because we are looking at high-yield, closed-end funds, that expense becomes less important. Here are three of the best CEFs to choose from...
Guggenheim Enhanced Equity Income Fund. (GPM) is a “buy-write” fund that purchases securities and then sells call options against those securities. It wants broad exposure to the equity markets through stocks and ETFs. The options are either out of the money or at the money, and usually are for a single month contract, although others can be used. The fund collects dividends on the equities it holds to enhance returns. The Liberty All-Star Equity Fund (USA) is a mixed fund that jams five different managers together — three in value oriented strategies and two in growth — to form this large-cap CEF. Hey, five heads are better than one. The Cohen & Steers Limited Duration Preferred and Income Fund (LDP) is one of my favorites. I am a big fan of preferred stocks because these issues offer exceptional safety and comparatively generous yields. They trade more like bonds, in a tight trading range, so there tends to be very little risk of losing your capital. However, they provide yields that are like junk bonds without the risk that those same bonds have.
Source: InvestorPlace
Related Articles:
- A Winning Investment Strategy
- 7 Dividend Stocks With A 20% Yield In 20 Years
- 5 Industrial Strength Dividend Growth Stocks With Yields In Excess Of 3%
- Finding Low Risk Dividend Stocks
- 10 Fun Facts That You Might Not Know About Microsoft
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
If you are going down the dividend route, you may as well find stocks that are performing well, regardless of the dividend — stocks where th...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
If you invest for income, then dividend-paying stocks are likely to be a core component of your investment approach. The worst fear for inco...
-
Many investors have heard of dividend aristocrats, stocks which have increased dividends for at least 25 straight years. However, once these...
-
If you are a devoted dividend aficionado, there are probably few thrills as exciting as seeing a dividend payment hit your brokerage account...
-
For retirees, buying and holding high-quality dividend stocks is arguably the best way to predictably create and sustain wealth. But investi...
-
Yes, there is an initial dip from REITs when inflation spikes and the Fed raises rates. Hoever, REITs have historically been able to overcom...
0 comments
Post a Comment
Post a Comment