Elliott

CEFs to Weather a Continued Storm in Equities

gypsytrucker: Alpine funds have a very good reputation. I would hesitate on the dividend funds, AGD and AOD, because they are selling at a premium. These are corporate dividend CEFs and I would worry about the companies cutting divvies, meaning Alpine would have to cut distributions in turn, bringing a risk to the downside for the CEF as a whole. AWP -- good that it's discounted; concern is 50%+ holding in one company, Unibail-Rodamco (lack of diversification).

CEFs to Weather a Continued Storm in Equities

Good article. Heavily discounted CEFs with high dividend yields are a very good investment especially with dividend reinvestment. Good diversification in your list although I think it could be diversified even more by adding a CEF that focuses on non-US government debt. When Lehman collapsed there was indiscriminate selling of international bonds and these now have good value. I think the high yields overstate the default risk for many nations.

My pick in this area is Western Asset Emerging Debt Fund (symbol ESD). Holds high yielding bonds from Brazil, Mexico, Turkey, Russia and more. Discount -16%, Income Yield 6%, Investment Yield 13.3%, pays monthly.