Juicing Your Retirement Yield With CEFs: PCI, HFRO And RQI

Seeking AlphaClosed End FundsJuicing Your Retirement Yield With CEFs: PCI, HFRO And RQIAug. 22, 2020 9:15 AM ET|| About: Highland Income Fund (HFRO), PCI, RQI, Includes: HFRO.PA, KBWY, PTY, RFI, RNP, SPY, VNQby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryFor investors seeking income, closed-end funds are one tool that should be in their portfolio.
CEFs tend to provide high levels of income and diverse exposure.
With many stocks currently overvalued, some high-yield CEFs are trading at a nice discount.
We discuss the CEF structure and three of our top CEF picks in today's market.
Co-produced with Beyond Saving
At High Dividend Opportunities, our goal is to build a high level of current income through dividends. Dividends provide the flexibility to redirect the income into other profitable investments, or they are used by many as retirement income or spending money. To ensure stability, we encourage having a very diverse array of dividend-paying investments.
There are many types of investments that income investors can turn to – one structure that's particularly favorable is closed-end funds or CEFs. These funds have a lot of great benefits for an income portfolio. They provide a high level of income and provide instant diversification, making the CEF a critical tool to have in your income-producing toolbox.
What Are CEFs?
A closed-end fund has many similarities to open-ended funds like mutual funds or exchange-traded funds (ETFs). All funds are run by an investment advisor that hires a management team to actually manage the investments. Funds will make income and capital gains distributions to shareholders and the advisor will charge a fee based on the amount of assets under management.
The key difference between a CEF and open-ended funds (such as Mutual Funds or many ETFs) is that a CEF raises capital at inception through an IPO. From then on, a fixed... Read more