The Last Cheap Dividend Stocks Yield Up to 9.7%
Brett Owens, Chief Investment StrategistUpdated: July 11, 2025
The last bargains on the big board? Discounted closed-end funds (CEFs).
CEFs are often the “last stop” for dividend deals. We are talking about an inefficient corner of the income universe, which is just great for us contrarians—we love the discounts.
And these funds can trade for less than “fair value” for months and even years on end. When the markets washed out in April, these CEFs were discarded by their vanilla dividend owners. Let’s pick up the pieces for up to 12% off, or 88 cents on the dollar. And in the process secure yields up to 9.7%.
Nuveen Dow 30 Dynamic Overwrite Fund (DIAX)
Distribution Rate: 8.4%
We’ll start with the Nuveen Dow 30 Dynamic Overwrite Fund (DIAX), an example of a strategy that thrives in CEF land: covered calls.… Read more