Small cap stocks provide significant long-term price appreciation potential, but a perennial problem for income-investors is they pay very little in terms of dividends. However, the small cap CEF we review in this article offers a very attractive 8.0% annual yield (paid quarterly). It also offers a great management team, an impressive long-term track record, and it currently trades at a compelling 16% discount to its NAV suggesting it has strong price appreciation potential ahead.
If you like big yield and significant price appreciation potential, then this particular closed-end fund (CEF) is worth considering. It’s a sector-specific CEF that yields nearly 11% (paid monthly). And not only is the sector an attractive contrarian play for multiple reasons right now, the fund is trading at a double-digit discount to its NAV which suggests it may have even more upside rebound potential ahead.