Core Insights - Closed-end funds (CEFs) are currently seen as undervalued investment opportunities, often trading at discounts to their net asset values (NAVs), making them attractive for contrarian investors [2][3] High Yield CEFs: Eaton Vance Tax-Advantaged Dividend Income Fund (EVT) - EVT invests in both common and preferred stocks, focusing on qualified dividends that are taxed at favorable long-term capital gains rates [4] - The fund currently yields 8%, significantly higher than the typical 2% yield of standard dividend funds, partly due to a leverage of about 20% of assets [6][7] - EVT trades at an 8% discount to NAV, wider than its historical average of 5% [9] High Yield CEFs: Eaton Vance Tax-Managed Buy-Write Opportunities (ETV) - ETV employs a covered call strategy, holding a portfolio of 150 large-cap stocks and generating income through selling covered calls on major market indexes [11] - The fund trades at approximately 94 cents on the dollar, providing a cost-effective way to gain exposure to its monthly distributions [12] High Yield CEFs: BlackRock Enhanced Global Dividend Trust (BOE) - BOE has a diversified portfolio of about 50 stocks, split between U.S. and international equities, focusing on blue-chip companies [13][15] - The fund yields over 8%, supported by a covered call strategy, and currently trades at an 8.7% discount to NAV, which is less than its long-term average of 11% [16] High Yield CEFs: BlackRock Resources & Commodities Strategy Trust (BCX) - BCX invests in stocks of commodity and natural resources companies, maintaining a portfolio of 45 companies across energy and materials sectors [17] - The fund is currently available at a 6% discount, which is less attractive compared to its long-term average discount of 10% [18] High Yield CEFs: ClearBridge Energy Midstream Opportunity Fund (EMO) - EMO focuses on midstream energy companies, yielding nearly 10% and utilizing high leverage of about 30% to enhance returns [19][21] - The fund has outperformed its benchmark, the Alerian MLP Index, since 2023, but trades at a premium compared to its historical average discount of 15% [23]