Dividend investors seeking monthly distributions should look at closed-end funds (CEF) to achieve income objectives. CEFs can trade at a discount to the net asset value (NAV) which means there is a potential capital gain if the CEF price moves up to the NAV. I have identified a list of CEFs that have price momentum throughout 2012 that are still selling at a discount. These CEFs all have distribution yields greater than 8%. Here is a list for further evaluation.
Alpine Global Premier Properties (AWP) is a global real estate fund. AWP is trading at $6.52 with a current discount to NAV of 12.85%. AWP has a distribution yield of 9.10% paid on a monthly basis. AWP increased its dividend by 52% on July 20 2011. YTD, AWP has a market return of 24% with a three-year return of 48%. Management recently announced a new share repurchase plan because it sees AWP as being undervalued at its current market price.
Calamos Global Dynamic Income (CHW) generates total return by investing in a mix of equities, bonds and alternative investments globally. CHW is trading at $8.75 with a current discount to NAV of 9.53%. CHW has a distribution yield of 8.47% paid on a monthly basis. On Jan. 31, 2012, CHW announced a 24% increase to its distribution. YTD, CHW has a market return of 20% with a three-year return of 32%.
Eaton Vance Tax Adv Global Dividend Inc (ETG) is a world stock fund. The fund invests 80% of its assets in dividend-paying common and preferred stock that is eligible to pay qualified dividends, which are taxed at a lower rate. It also utilizes a dividend-capture strategy on a portion of the portfolio. ETG is trading at $14.44 with a current discount to NAV of 7.03%. ETG has a distribution yield of 8.44% paid on a monthly basis. ETG has a solid history of paying a consistent dividend. YTD, ETG has a market return of 19% with a three-year return of 36%.
Calamos Strategic Total Return (CSQ) has a goal is to generate total return through investing in domestic equities, high-yield corporate bonds and convertible securities. CSQ is trading at $9.94 with a current discount to NAV of 8.30%. CSQ has a distribution yield of 8.48% paid on a monthly basis. On Feb 8, 2012, CSQ paid a 33% higher distribution from the prior month. YTD, CSQ has a market return of 19% with a three-year return of 33%.
Alpine Total Dynamic Dividend (AOD) seeks to achieve both dividend income and long-term growth of capital while offering investors diversification through international equity exposure where managers find attractive growth plus generally higher dividend yields. AOD is trading at $4.73 with a current discount to NAV of 9.03%. AOD has a distribution yield of 13.73% paid on a monthly basis. YTD, AOD has a market return of 9.8% with a 3-year return of 12.71%.