Tag #Cefs

Showing 13 to 18 of 18 results

forbes.com

🌐 75% Global Worthiness

Feb 8, 16:08

SPXX: A 7.6% Dividend Yield Amidst Trade Tensions

The Nuveen S\&P 500 Dynamic Overwrite Fund (SPXX) offers a 7.6% dividend yield and employs a covered-call strategy that benefits from market volatility, providing investors with income and a hedge against potential economic downturns amid trade tensions.

SPXX: A 7.6% Dividend Yield Amidst Trade Tensions

The Nuveen S\&P 500 Dynamic Overwrite Fund (SPXX) offers a 7.6% dividend yield and employs a covered-call strategy that benefits from market volatility, providing investors with income and a hedge against potential economic downturns amid trade tensions.

Progress

52% Bias Score

ShareSaveArticle

Reduced Inequality

12345678

Previous 1 of 8 Next

How does SPXX's covered-call strategy mitigate the risks associated with trade-related uncertainty and market fluctuations?

SPXX's performance is linked to market volatility and trade tensions impacting the S\&P 500. The fund's covered-call strategy acts as a hedge against potential economic downturns, generating income even during market corrections. This strategy is particularly appealing during times of uncertainty.

forbes.com

🌐 75% Global Worthiness

Dec 29, 19:09

Return of Capital in CEFs: A Misunderstood Metric

An analysis of five Nuveen closed-end funds reveals that high return of capital (ROC) percentages, contrary to popular belief, do not necessarily indicate poor performance; actively managed funds may outperform passively managed funds regardless of ROC, and tax implications of ROC should be consider...

Return of Capital in CEFs: A Misunderstood Metric

An analysis of five Nuveen closed-end funds reveals that high return of capital (ROC) percentages, contrary to popular belief, do not necessarily indicate poor performance; actively managed funds may outperform passively managed funds regardless of ROC, and tax implications of ROC should be consider...

Progress

52% Bias Score

ShareSaveArticle

Reduced Inequality

12345678

Previous 1 of 8 Next

What is the primary takeaway regarding return of capital (ROC) in high-yield closed-end funds, and how does this impact investor decisions?

High-quality closed-end funds (CEFs) often distribute a significant portion of their returns as return of capital (ROC), which is frequently misunderstood. However, in many cases, ROC is advantageous, providing tax-free income for US shareholders and potentially boosting net profits. Five Nuveen funds illustrate this, showcasing varying ROC percentages and performance.

forbes.com

🌐 75% Global Worthiness

Dec 17, 16:15

S&P 500 Soars 28% in 2024: A Fundamental Recovery

The S&P 500's 28% year-to-date gain in 2024, exceeding expectations, stems from a fundamental recovery following 2022's selloff, driven by recession fears that did not materialize, and is less dependent on the technology sector's performance.

S&P 500 Soars 28% in 2024: A Fundamental Recovery

The S&P 500's 28% year-to-date gain in 2024, exceeding expectations, stems from a fundamental recovery following 2022's selloff, driven by recession fears that did not materialize, and is less dependent on the technology sector's performance.

Progress

40% Bias Score

ShareSaveArticle

Reduced Inequality

12345678

Previous 1 of 8 Next

What are the primary drivers of the significant gains in the US stock market in 2024, and what are their implications for investors?

The S&P 500 experienced a 28% year-to-date gain in 2024, exceeding initial expectations of a 15% increase. This growth is largely attributed to a fundamental recovery following the 2022 selloff, driven by recession fears that did not materialize. Unlike previous strong years, the technology sector's contribution is less significant.

forbes.com

🌐 85% Global Worthiness

Jan 18, 19:08

Undervalued REITs Poised for Growth Amidst Interest Rate Cuts

Real estate investment trusts (REITs) are currently undervalued, presenting a buying opportunity due to a disconnect between REIT and house prices, despite the expectation of lower interest rates from the Federal Reserve, which will benefit REITs' profitability and dividends, with some sectors alrea...

Undervalued REITs Poised for Growth Amidst Interest Rate Cuts

Real estate investment trusts (REITs) are currently undervalued, presenting a buying opportunity due to a disconnect between REIT and house prices, despite the expectation of lower interest rates from the Federal Reserve, which will benefit REITs' profitability and dividends, with some sectors alrea...

Progress

44% Bias Score

ShareSaveArticle

Reduced Inequality

12345678

Previous 1 of 8 Next

How do the projected interest rate cuts affect REITs' profitability, dividend payouts, and potential for expansion?

The current pessimism surrounding REITs, coupled with the expectation of lower interest rates, presents a compelling investment opportunity. REITs' ability to borrow at lower costs, along with potential growth in specific sectors like data centers and infrastructure, suggests future price increases and dividend hikes. This contrasts with the historical overvaluation of REITs during periods of high housing prices and interest rates.

forbes.com

🌐 75% Global Worthiness

Dec 27, 19:10

High CEF Dividend Yields: Sustainability and Tax Implications

Closed-end funds (CEFs) average an 8.7% dividend yield, exceeding the S&P 500's 1.3%, due to trading at a discount to net asset value (NAV) and strategic tax management via 'return of capital' (ROC). High-quality CEFs use ROC to minimize tax burdens on investors' profits, unlike low-quality funds th...

High CEF Dividend Yields: Sustainability and Tax Implications

Closed-end funds (CEFs) average an 8.7% dividend yield, exceeding the S&P 500's 1.3%, due to trading at a discount to net asset value (NAV) and strategic tax management via 'return of capital' (ROC). High-quality CEFs use ROC to minimize tax burdens on investors' profits, unlike low-quality funds th...

Progress

48% Bias Score

ShareSaveArticle

Reduced Inequality

12345678

Previous 1 of 8 Next

How does the concept of 'return of capital' (ROC) impact the tax liability of CEF investors, and what distinguishes 'good' ROC from 'bad' ROC?

The high yields of CEFs are achievable because they trade at an average 5.8% discount to NAV, and because they utilize strategies to manage tax liabilities for shareholders through 'return of capital' (ROC). While high ROC can sometimes indicate unsustainable payouts, in quality CEFs, it's a tool to minimize the tax burden on investors' profits, as illustrated by GNT's 87% tax-free ROC in 2023 despite a 9.8% NAV return. The key difference lies in how ROC is managed.

forbes.com

🌐 75% Global Worthiness

Dec 14, 19:08

High-Yield CEF Strategy for Income Investors using International and US Markets

This article proposes a strategy for income investors to leverage high-yield closed-end funds (CEFs), specifically the BlackRock Enhanced International Dividend Trust (BGY) yielding 9.2%, and the China Fund (CHN), to generate higher returns and mitigate risk by rebalancing between US and internation...

High-Yield CEF Strategy for Income Investors using International and US Markets

This article proposes a strategy for income investors to leverage high-yield closed-end funds (CEFs), specifically the BlackRock Enhanced International Dividend Trust (BGY) yielding 9.2%, and the China Fund (CHN), to generate higher returns and mitigate risk by rebalancing between US and internation...

Progress

52% Bias Score

ShareSaveArticle

Reduced Inequality

12345678

Previous 1 of 8 Next

What are the potential long-term risks and benefits of employing this CEF-based rebalancing strategy, considering the inherent uncertainties in the global economy and the political climate in China?

The article suggests that the current market conditions present a strategic opportunity for income-seeking investors to leverage international CEFs for higher yields and reduced risk compared to traditional ETF strategies. The proposed rebalancing strategy could mitigate the volatility associated with individual stock or market fluctuations while capitalizing on high dividend payouts. The long-term implications of this strategy depend on future economic performance and policy changes in both the US and international markets.

Showing 13 to 18 of 18 results