ADX: Positive Returns, Looking Forward To A Year-End Special Dividend

Seeking AlphaClosed End FundsADX: Positive Returns, Looking Forward To A Year-End Special DividendNov. 9, 2020 8:41 AM ET|| About: Adams Diversified Equity Fund, Inc. (ADX), Includes: AAPL, AMZN, FB, GOOG, GOOGL, HD, JNJ, MSFT, TMOby: Nick AckermanNick Ackerman CEF/ETF Income LaboratoryCEF/ETF income and arbitrage strategies, 8%+ portfolio yieldsSummaryADX pays a smaller quarterly dividend, then a significantly larger year-end special distribution of at least 6%.
This fund has held its own against the broader S&P 500 in terms of performance, being a 'plain vanilla' fund.
The fund is invested in some of the top sectors that have done exceptionally well this year, with uncertainty abound, we could see this continue.
Written by Nick Ackerman, co-produced by Stanford Chemist
Adams Diversified Equity Fund (ADX) isn't the typical fund that I usually cover. It is a rather boring diversified equity fund. It pays a small quarterly distribution. However, it also makes large year-end special distributions to make up for the shortfalls throughout the year. They are committed to a minimum of 6% in the annual distribution rate. Last year, this came out to 9.6% when the year-end special was included. Additionally, their higher exposure to tech has resulted in the fund putting up respectable returns this year.

(Source - Adams Funds)
Their investment objective is simply; "long-term capital appreciation." The investment policy is quite straight forward as well. They intend to meet this objective by "investing primarily in large U.S. companies." This makes it quite comparable to the S&P 500 ETF (SPY). Their returns are comparable as well, as we will highlight below.
Another unique characteristic of ADX is that it was incepted in 1929. This makes it one of the oldest closed-end funds still in operation. Though it was previously known as The Adams Express Company before 2015. Not only that, but before it was also converted to a closed-end fund in... Read more