These 8%-Paying Funds Are “Must Buys” in 2024 (With 1 Critical Caveat)

If there’s one thing we need to remember when we buy high-yield closed-end funds (CEFs), it’s this: always demand a discount. Well, make that two: always demand a high dividend, too! Because CEFs are renowned for their high—and often monthly—payouts, with the average CEF yielding around 8% today. But back to discounts. Luckily for us, they’re common with CEFs: of the 422 CEFs tracked by the CEF Connect screener, 384 trade at discounts to net asset value (NAV). That’s a great place to start our search for top-notch CEFs, because these discounts are basically free money: they let us pick up, say, Mastercard (MA) for 85 cents on the dollar through a CEF like the Gabelli Dividend & Income Trust (GDV). … Read more