Reitrees: Adams Diversified (ADX) Yields 8.1% And No One Has Heard Of It

Core Insights - Adams Diversified Equity Fund, Inc. (NYSE: ADX) has achieved over 100% growth in the past 5 years while providing an 8.12% yield, making it a notable investment opportunity that has largely gone unnoticed by institutional investors [3][5][9] - The fund has outperformed the S&P 500 by approximately 7 percentage points year-to-date, with a return of 23% [5][9] - ADX has a low institutional ownership of 19.6% and operates with a 0.50% expense ratio, indicating potential for individual investors [5][9] Historical Background - Founded in 1854 as Adams Express Company, the fund has historical ties to the Pony Express and played a role in the abolitionist movement [7] - Transitioned to an investment company in 1929, becoming one of the first closed-end funds (CEFs) in NYSE history [7] - The company has maintained annual dividends since 1935, with a 54-year streak of unbroken payments [7] Performance Metrics - A $10,000 investment in ADX made five years ago would be worth approximately $21,042.19, and over $40,000 if invested ten years ago [8] - The fund's year-to-date return is 23%, with a 1-year return of 25.6% and a 5-year return of 20.3% [9] - ADX currently trades at a -4.3% discount to its net asset value (NAV), which may attract yield-oriented investors [9] Portfolio Composition - ADX holds significant shares in major stocks, including a 13% allocation in financials and 10% each in consumer cyclical and telecommunications [8] - The fund also includes a 2% allocation in Adams Natural Resources Fund (NYSE: PEO), which has a 5-year return of +177% [8]