Indexor

Seven High-YieldingTax Exempt Dividend Stocks

Be careful with CEFs. In a credit-problem environment like we are currently experiencing, it is very easy to have liquidity dry up. Go back and look at charts for these issues from last year. You'll see a couple of them fall off a cliff with declines in June, August and November. And if you want to buy more than 100 shares, say 5,000, 10,000 or more, you may not be able to get out in one day without taking a real beating. You can't block trade a CEF that only has 100 shares at the Bid. ETFs and even mutual funds (Ugh!) offer much more liquidity and less questionable trading agendas. It will only take one bad experience with CEFs for you and your client's to leave that market forever.