If you’re reading this, I probably don’t have to tell you that the stock market beats most (all?) other ways of building wealth.It’s not even close!Over time, the S&P 500 has generated around a 10% annualized return. But of course, that line does not go straight up and to the right. There have been long periods when stocks have moved sideways, and occasional years (I’m looking at you, 2022), when they’ve taken a header.At those times, in particular, we’re all keenly aware of the S&P 500’s lame dividend yiel ...

To see all that our exclusive membership has to offer, sign up for a free trial by clicking on the button below!At the CEF/ETF Income Laboratory , we manage closed-end fund ( CEF ) and exchange-traded fund (ETF) portfolios targeting safe and reliable ~8% yields to make income investing easy for you. Check out what our members have to say about our service.Utilities are often a relatively boring part of the overall equity market, producing regular cash flows to help fund generally growing dividends. They are ...

To see all that our exclusive membership has to offer, sign up for a free trial by clicking on the button below!At the CEF/ETF Income Laboratory , we manage closed-end fund ( CEF ) and exchange-traded fund (ETF) portfolios targeting safe and reliable ~8% yields to make income investing easy for you. Check out what our members have to say about our service.Franklin Limited Duration Income Trust ( FTF ) provides investors with exposure to a fixed-income portfolio, with a focus on "limited duration" as its nam ...

Thank you for reading my article. My goal is to give you observations and actionable ideas in Closed-End funds while educating you on how these unique and opportunistic funds work.CEFs can be one of the most exhilarating and yet most frustrating security classes to invest in, and it's important that you have someone who can be a level head during up and down periods of the market. I hope to be that voice of calm when necessary.    ~ Douglas Albo  If you'd like to learn more about my services, please go to t ...

Core Viewpoint - The bankruptcy of auto-parts supplier First Brands has raised concerns about the business development companies (BDCs) market, which is known for high dividends, prompting investors to question whether these assets are now bargains [2][3]. Group 1: Market Concerns - The bankruptcy of First Brands has led to increased scrutiny of the private-credit market where BDCs operate, with JPMorgan CEO Jamie Dimon suggesting there may be more issues within this sector [3]. - BDCs are facing challenges as investors are wary of potential risks associated with high yields that may be linked to declining stock prices [2][4]. Group 2: Specific BDC Analysis - Blue Owl Capital (OBDC) is highlighted as a BDC with high fees, including a 1.5% base management fee and a 17.5% cut of net investment income, which raises concerns about its attractiveness despite its 11.9% yield [6][7]. - OBDC has not outperformed the BDC market since its IPO in 2019, indicating that its performance is not compelling enough to justify its fees [8]. - Prospect Capital Corp (PSEC) is noted for being the cheapest BDC on the market, trading at a 60% discount to NAV, but its long-term return of 7% over the last decade and a 20.9% current yield signal potential risks [8][9]. Group 3: Alternative Investment Opportunities - The Liberty All-Star Growth Fund (ASG) is presented as a more favorable investment option, having achieved a 175% total return over the last decade, significantly outperforming BDCs [11]. - ASG offers a predictable dividend tied to its portfolio performance, committing to pay about 8% of NAV annually, and currently trades at an 11.2% discount to NAV, making it an attractive alternative to BDCs [12][13].

To see all that our exclusive membership has to offer, sign up for a free trial by clicking on the button below!At the CEF/ETF Income Laboratory , we manage closed-end fund ( CEF ) and exchange-traded fund (ETF) portfolios targeting safe and reliable ~8% yields to make income investing easy for you. Check out what our members have to say about our service.Western Asset Mortgage Opportunity Fund Inc ( DMO ) is a closed-end fund that we noted as being unattractively valued in our prior update. The fund's disc ...

Core Insights - BlackRock Debt Strategies Fund (DSU) is a closed-end fund that offers exposure to a diverse range of debt investments, which can generate attractive income [1] Group 1: Fund Structure and Strategy - The fund is structured to provide efficient income generation through various debt investments [1] - The investment strategy includes a mix of classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1] Group 2: Performance and Management - The fund aims to create a hybrid system that balances growth and income, targeting total returns on par with the S&P [1]

Group 1 - Virtus Equity & Convertible Income Fund (NIE) is highlighted as a unique closed-end fund that offers instant exposure to high-quality companies while providing investment income opportunities [1] - The investment strategy combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1] Group 2 - The article emphasizes the importance of a hybrid investment approach that balances growth and income to optimize returns [1]

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]

Core Viewpoint - The article focuses on analyzing CLO CEFs (Collateralized Loan Obligation Closed-End Funds) and aims to provide a credit rating perspective similar to that of Moody's for a company that primarily invests in CLO equity securities, specifically highlighting the work of Arbitrage Trader led by Denislav Iliev [1]. Group 1 - Arbitrage Trader, led by Denislav Iliev, has over 15 years of day trading experience and manages a team of 40 analysts [1]. - The team specializes in identifying mispriced investments in fixed-income and closed-end funds using straightforward financial logic [1]. - The investment group, Trade With Beta, offers features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, hedging strategies, and an actively managed portfolio [1].