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JDD: Diversified Dividend CEF Paying Around 8.6%


  • JDD offers a unique approach to investing in their portfolio.
  • They have overweight exposure to REITs, yet also carry senior loans and sovereign debt investments too.
  • They were hit over the last several years, but longer-term I believe there is an opportunity here.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Get started today »

Written by Nick Ackerman, co-produced by Stanford Chemist

Nuveen Diversified Dividend and Income Fund (NYSE:JDD) is as the name would suggest and that is highly diversified. They take a 50/50 balanced approach to investing between stocks and bonds, though are free to move outside these parameters a bit as needed. They also aren't limited to one geographic region, and instead, invest around the globe. That also provides flexibility for the managers to invest where they see opportunity. REITs do play a major role in their investing approach, however.


As I'm looking for opportunities for investments outside the U.S., this fund piqued my interest. The fund's objective is a "high current income and total return."

The parameters they list for investing to achieve this objective are: "1) U.S. and foreign dividend-paying common stocks, 2) dividend-paying common Real Estate Investment Trusts issued by real estate companies, 3) emerging markets sovereign debt, and 4) senior loans. The Fund expects to invest between 40% and 70% of its managed assets in equity security holdings and between 30% and 60% of its managed assets in debt security holdings. Under normal circumstances, the Fund's target weighting is approximately 50% equity and 50% debt."

This type of approach means an investor can have a bit of exposure to almost anywhere in the globe and to almost any type of income-focused investment, though with a heavier emphasis on REITs. REITs themselves are focused on producing income, so is a great fit for this type of portfolio anyway. This makes it a unique approach from other choices on the market. It can also add instant diversification to an investor's portfolio.

This approach can make it a bit similar to Nuveen Real Asset Income and Growth Fund (JRI). JRI is a holding in our Income Generator portfolio at

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This article was written by

Nick Ackerman profile picture

Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.

He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.

Analyst’s Disclosure: I am/we are long JRI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article was originally published to members of the CEF/ETF Income Laboratory on February 15th, 2021.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (10)

RQI and RNP look good here after sell off today. REIT should do better as economy opens?
Nick Ackerman profile picture
@integritycoatings - I've been watching those two. They were getting rather pricey relative to their NAV. I suspect a bit more of a pullback would make more sense. Though this market seems to only give quick little opportunities for the last few months.
Eileen Dover profile picture
@Nick Ackerman Watched RNP,RQI,RFI. Thought they all had basically the same holdings (100% RE). Saw RFI still has a 7.7% premium after today's sell off, so it was between RNP & RQI. I went with RNP as M* gave it 5* for sustainability to 2* for RQI. Picked it up @ 22.75 on today's drop. Did not see any RNP distribution cuts going back to 2003. Saw one cut in Sept 2010 for RQI. Yes, RQI yields 1% higher.....
Nick Ackerman profile picture
@Eileen Dover - RNP and RQI went to a quarterly pay after 2008/09. Some charts don't really clearly show this. Still, that was a crazy time for the market and real estate so it is forgivable, I believe. RQI and RNP are quite a bit different. I hold both, more so RNP. RNP is about 50% REITs and 50% preferred stock of mostly financial companies, though some other sectors as well. RQI is more of an equity REIT holding, with only minor preferred stock holdings.
Is the mall mess over with WPG getting hit hard today is the question
of the day, month, or year ?
Nick Ackerman profile picture
@AlieGee yikes! I hadn't noticed that. Thank you for the heads up.
@AlieGee That stock needs to get put out of its misery!
Nick Ackerman profile picture
@Bobbie B - agreed! I guess the reverse split was only so it could slope back down again.
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