Starved for Income? These 500 Funds Pay 7%+ (with upside)
September 10, 2020 at 05:00 AM EDT
When I ask closed-end fund (CEF) investors what they like most about these funds, their answer is almost always the same: the dividends! It’s easy to see why. The average CEF yields 7.1%, and that majority of the 500 CEFs in existence pay dividends monthly . Those two strengths put you miles ahead of someone who bought the average S&P 500 stock, with its pathetic 1.6% payout. CEF Dividends Reign Supreme Source: CEF Insider With a 7.1% dividend, you’d collect just under $50,000 in annual income on a $700,000 investment. Compare that to a popular index fund like the 1.6%-paying SPDR S&P 500 ETF (SPY): you’d need over $3.1 million to collect the same $50,000 of income!… Read more