CEF Investors: Doing This Will Jeopardize Your Income (and Portfolio)

We’ve got some superb dividends sitting in front of us in CEFs right now—as I write this, these funds yield an incredible 7.9%, on average! That’s way more than Treasuries (especially after their yields were pummeled last week). And far more than the 1.3% dribbled out by the typical S&P 500 stock. Best of all, many CEFs hold the same stocks you likely hold now—including household names like Apple (AAPL) and Microsoft (MSFT). So you likely won’t have to ditch your current holdings to get into these funds. Those high dividends, as you can likely imagine, get a lot of attention from investors—so much so that some may be tempted to try a technique known as “dividend capture” with CEFs.… Read more