4 Closed-End Funds That Will Pay You 8%+ Monthly Dividend Yields

Published Wed, 15 Jul 2020 01:38:18 -0400 on Seeking Alpha

Seeking AlphaClosed End Funds4 Closed-End Funds That Will Pay You 8%+ Monthly Dividend YieldsJul. 15, 2020 1:38 AM ET|| Includes: ACV, CHY, CSQ, THWby: MoneyShowMoneyShow Corporate contributor, newsletter providerSummaryHarry Domash is an income expert and editor of Dividend Detective.
These top-performing funds (based on three-year returns) recently traded near their net asset values and are paying monthly dividends equating to 8.0% to 10% yields.
Funds discussed in this article include: ACV, THW, CSQ, and CHY.
By Harry Domash, DividendDetective and Winning Investing
Eventually, a reliable vaccine will be developed, the coronavirus will be history, and we’ll once again be able to pick stocks based on the relatively predictable factors such as revenue and earnings growth, explains Harry Domash, income expert and editor of Dividend Detective.
In the meantime, I’m going to suggest a portfolio of four closed-end funds that will pay you monthly dividends equating to 8% to 10% dividend yields while you wait.
The dividend yield is similar to the annual interest rate that you receive on a money market or savings account. Calculate it by comparing the annual dividends you receive to the price you paid for the stock or fund. For instance, your annual dividend yield would be 10 percent if you paid $10 per share for a stock or fund paying $1 annually.
While the closed-end funds I’m going to describe are paying yields much higher than the 1% or so banks are currently paying, the downside is that your investment is not U.S. Government-insured. You could lose everything in a total market collapse.
Closed-end funds (CEFs) are similar to conventional mutual funds. However, unlike conventional funds that create new shares as needed, CEFs only issue a fixed number of shares at the IPO, and after that, those shares trade on the open market just like stocks.
Unlike ETFs, CEFs can use leverage (borrowed funds) to enhance returns. For instance, they might... Read more