Introduction
One of the lively debates amongst Seeking Alpha readers is if any income investor should care about total return. If a fund yields 9+%, should investors care that its price seems to be in steady
Eaton Vance Enhanced Equity Income Fund: Good But Maybe Not Their Best Choice
Summary
- Eaton Vance offers at least five closed-end funds that provide investors with higher yields via the use of option writing. Two are labeled Enhanced Income and three as Buy/Write.
- This article will focus on EOI with comparisons to its sister Enhanced Income CEF: EOS.
- As with most Enhanced Income funds, investors give up some CAGR in exchange for higher current income. That trade-off is also reviewed.
- For investors looking for current income from a fund that does not take it back via price declines, I am Bullish on the Eaton Vance Enhanced Equity Income Fund.
Retired Investor has been investing since the 1980s and has a background in data analysis and pension fund management. He writes articles to help others prepare for retirement by investing in CEFs, ETFs, BDCs, and REITs. He is a long only investor and shares strategies for trading options with a focus on cash-secured-puts.
He is a contributing author to the investing group iREIT®+HOYA Capital
The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.
.
Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.
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.