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Income Opportunities Are Open In Closed-End Funds: (EXG) - (TY) - (FAX)

FYI: After a decade of low interest rates, investment income is still difficult to come by. The S&P 500 offers a dividend yield that hovers near 2%. The 10-year U.S. Treasury bond offers investors less than 3% in annual interest.

But closed-end funds can offer juiced investment yields to investors through a number of their structural attributes. In these vehicles, asset classes like tax-free municipal bonds may yield over 5% annually. Taxable bonds and dividend-paying stocks may offer yields over 7%.

According to Closed-End Fund Advisors, a fee-based RIA in Richmond, Va., the average closed-end fund was up 11.8% in the first quarter of 2019 (it fell 8.7% in the fourth quarter of 2018). The average equity closed-end fund in the first quarter was up 14.8%, besting the S&P 500’s

M* Snapshot EXG:

M* Snapshot TY:

M* Snapshot FAX:


  • while I normally avoid closed end I did go out and buy PTY as I felt low interest rates are here for a long time.

    Dividends are declared monthly to common shareholders from net investment income. Distributions of net realized capital gains, if any, are paid at least annually. The amount of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles.

  • FAX has been spinning off ROC for years ... not sure if it's a good ROC or bad ROC, though. And its UNII is barely there, which means there's little cushion if problems occur.
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