Despite the recent rise in interest rates, income remains hard to come by.
Many traditional income products – like CDs, corporate bonds and even several dividend stocks – aren’t exactly paying tons in yield these days. And with that, investors have continued to look outside the box when it comes to finding high yields and much-needed income.
This could explain why many investors have once again flocked to closed-end funds (CEFs).
These mutual fund/exchange-traded fund (ETF) cousins have a long history when it comes to providing plenty of income-generation potential. Considering the search for income is still on, investors may want to consider CEFs for their portfolios.
Rising Interest in CEFs
At first glance, closed-end funds are a bit strange. On the one hand, they trade throughout the day just like ETFs. However, they are also actively managed like many mutual funds. But that’s about where the similarities end. The main difference comes down to their prices and the relationship to their net-asset values.
Get Email Updates
Join over 100,000 investors who get the latest news from Dividend.com
Readers’ attention these past two weeks shifted to mortgage real estate investment trusts.
Confectionery Giant With Nearly 10 Years of Dividend Growth Solidifies Position on Best Dividend Stocks List
Check out the latest update of Best Dividend Stocks List, wherein a confectionery...