Updated: October 5, 2016
Closed-end funds (CEFs) are finally starting to get their due attention as the yield machines they are. Some can still be purchased at a steep discount to their net asset values (NAVs) – which means you can buy the underlying assets for $0.90 on the dollar, or less.
Last week we discussed how to select the safest 7% yields in the field. In a 2% dividend world, many of these funds look great paying more than triple that.
But you’ll need to choose your CEFs carefully. A steep discount is a great start, but many funds simply grind sideways (including dividends) because they have no means to close that discount window.… Read more