BGY: Global Exposure With An ~8.8% Distribution Yield

Summary

  • BGY offers true international diversification, with over 90% of assets outside the U.S., focusing on value sectors and writing covered calls.
  • The fund trades at an attractive 8% discount to NAV, though not a deep bargain historically, and delivers an ~8.8% yield after a distribution increase.
  • International equities continue to offer better relative value than U.S. stocks, and BGY’s portfolio is positioned with significant global exposure.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

Wonderful world map and illustrations set on a blue background

Faruk Ibrahim Alpagut

Written by Nick Ackerman, co-produced by Stanford Chemist

The BlackRock Enhanced International Dividend Trust (NYSE:BGY) is a closed-end fund that provides investors with a globally diversified portfolio. Unlike many of its global peer funds, BGY takes its

At the CEF/ETF Income Laboratory, we manage closed-end fund (CEF) and exchange-traded fund (ETF) portfolios targeting safe and reliable ~8% yields to make income investing easy for you. Check out what our members have to say about our service.

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This article was written by

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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/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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