Income investors are missing out on high-yielding closed-end funds (CEFs) due to misconceptions. Despite higher fees compared to index funds, CEFs offer significant dividends, averaging around 8%. Fees are not deducted from dividends but from the fund’s portfolio. Two CEFs, BST and STK, outperform the S&P 500 even with fees included.

The fixed number of shares in CEFs allows for trading on exchanges but not new share issuance. Market prices fluctuate based on supply and demand, resulting in discounts to net asset value (NAV). BST and STK trade at discounts, providing opportunities to buy tech stocks like Microsoft at lower prices. Rotation between CEFs can maximize dividends and upside potential.

Investors can start a “CEF rotation” strategy with 5 bargain CEFs yielding over 9%. Diversification and high yields offer stability and income. Reinvesting dividends or using them for various financial goals can enhance returns. Delaying investment means missing out on dividends and potential gains. Click for more information on these 5 powerhouse CEFs and a free Special Report.

Read more at Nasdaq: How to Buy Microsoft at an 8% Discount (With a 7.7% Dividend)