From Nasdaq.:



The article discusses the importance of demanding a discount and high dividend when investing in high-yield closed-end funds (CEFs). It is indicated that discounts to NAV are common with CEFs, allowing investors to pick up funds for lower than their actual value and to receive a higher dividend in return.

The piece emphasizes that CEFs have fixed share counts and trade like stocks, meaning their shares and per-share NAVs often trade at different levels, usually at a discount. It also highlights the importance of management having a plan to close the CEF “discount window” for profitable investments.

The article concludes by pointing out the energy sector, specifically NextEra Energy, as a good investment opportunity and issuing a call-to-action to invest in the author’s “9% Monthly Payer Portfolio” as a balanced collection of various high-yield CEFs.



Read more: These 8%-Paying Funds Are “Must Buys” in 2024 (With 1 Critical Caveat)