Here's How These 2 CEFs Could 7X Your Dividends

Core Insights - The article emphasizes the importance of selecting high-yield closed-end funds (CEFs) over traditional index funds and beaten-down tech stocks, particularly in the current market environment [3][4][5] Group 1: Investment Opportunities - Two CEFs are highlighted that offer yields exceeding 7%, providing a more attractive income stream compared to standard index funds like the SPDR S&P 500 ETF Trust (SPY), which has a yield of only 1.1% [3][4][5] - The Nuveen S&P 500 Dynamic Overwrite Fund (SPXX) is presented as a CEF alternative to SPY, yielding 7.8% while holding the same underlying stocks [6][9] - The strategy employed by SPXX involves selling call options on its portfolio, generating additional income that supports higher dividend payouts [7][9] Group 2: Market Dynamics - SPXX's net asset value (NAV) has increased while its market price has decreased, creating a significant discount of 9.8% to NAV, which is viewed as an attractive entry point for investors [9] - The article also discusses the impact of current government funding strategies on bond investors, suggesting that corporate bond ETFs like the SPDR Bloomberg High-Yield Bond ETF (JNK) are less favorable compared to CEFs like the DoubleLine Yield Opportunities Fund (DLY), which offers a yield of 9.7% [10][12][14] - DLY's performance has outpaced JNK, and it is currently available at an 8.4% discount to NAV, making it a compelling investment option [14]