LGI: Global Diversification And Fully-Covered Distribution, But Performance Might Disappoint

Power Hedge
Investing Group Leader

Summary

  • Lazard Global Total Return and Income Fund offers a current yield of 8.26%, indicating that the market expects that the fund can sustain this payout.
  • The fund has underperformed the S&P 500 Index and MSCI World Index, resulting in a 4.76% total loss for investors since May.
  • The fund's allocation to cyclical sectors and exposure to technology stocks may pose risks in a potential economic slowdown.
  • The fund did fully cover its distributions in the first half of this year, but it had to rely on unrealized gains to do it.
  • The fund is currently trading at an attractive valuation.
  • Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More »

Swarm of banknotes around planet Earth

Hiroshi Watanabe

Lazard Global Total Return and Income Fund Inc (NYSE:LGI) is a closed-end fund that is specifically designed for investors who are seeking to earn a high level of income from the assets in their portfolios. The fact

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This article was written by

Power Hedge
15.65K Followers

Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

I am invested in funds that have very similar holdings to IYE but have no position in IYE itself.

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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