ADX: 8.6% Yielding CEF, Supported By Continued Rotation Into Large-Cap Growth Stocks
Published Feb 21, 2020 on Seeking Alpha

The key bullish catalyst is an expected continued robust operational performance of the key U.S. growth stocks over the next several quarters.
The fund recently reported an annual distribution of $1.42 in 2019, which currently makes up an 8.59% yield.
The fund has outperformed its key benchmark, S&P 500, by several hundred bps over the last 3-5 years.
This time, we will present our readers with the Adams Diversified Equity Fund (NYSE: ADX) which was incorporated in 1929. It is one of the oldest closed-end funds available to investors on the market which is primarily focused on U.S. blue-chip companies. Based on our historical analysis, it has been distributing its shareholders an annual distribution rate of approximately 6% over the last 15 years. It offers an 8.59% dividend yield as of February 18, 2020, which is way above the historical S&P 500 dividend yield typically in the range of 3% - 5%. In terms of the key bullish catalysts, we find them as the following: (1) positive outlook by sell-side analysts for the companies listed in the top 10 equity holdings, (2) supportive political and macroeconomic policies of the president Trump for the overall U.S. stock market.
About the Fund

Source: (Adams Funds)
ADX was established back in 1854 as an Adams Express - freight and cargo transport business, however, it was restructured as a closed-ended fund in 1929. The fund's portfolio consists of broadly diversified, large-cap and high-quality domestic equities, with a commitment to deliver an annual distribution rate of at least 6%. This fund is not allowed to use leverage which makes it more suitable for dividend investors, looking for steady distributions over the long run.
"Unlike open-end mutual funds, closed-ends don't have to worry about inflows and outflows, and "our entire focus is on compounding returns for our shareholders," says Stoeckle."
(Source: Barron's)
Fund also uses a sector-neutral approach, which basically means... Read more