IGA: Strong Performance From Foreign Exposure And Fully-Covered Distribution

Power Hedge
Investing Group Leader

Summary

  • IGA offers high income (10.34% yield) and equity exposure, outperforming bonds in total return and inflation protection.
  • The fund's global mandate allows it to capitalize on outperforming foreign markets, though it is currently overweight U.S. equities versus global indices.
  • The fund appears to be trying to take advantage of an uptick in global military spending, which may be a smart move.
  • Distribution coverage is adequate, but the fund has a history of cuts; current payout appears sustainable barring a major market decline.
  • IGA trades at a modest discount to NAV, but is pricier than its historical average—worth monitoring for a wider discount before buying.
  • 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 »

Planet Earth

Daniel Grizelj

The Voya Global Advantage and Premium Opportunity Fund (NYSE:IGA) is an interesting closed-end fund that investors may choose to purchase as a means of generating income while still maintaining exposure to the equity markets. It is critically

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This article was written by

Power Hedge
15.67K 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.

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