If you are an income-focused investor, you may have noticed that popular high-dividend REITs have struggled this year. Specifically, rising interest rates and secular changes to the real estate market have kept REIT prices low (while other market sectors, such as technology, have posted strong gains). In this report, we review a blue-chip REIT closed-end fund (“CEF”) that offers a large distribution yield (currently 8.1%) and trades at a significant discount to net asset value (“NAV”). After reviewing the strategy, distribution characteristics, leverage, price and risks, we conclude with our opinion on investing.
Attractive Real Estate CEF: 7.2% Yield, Paid Monthly, Discounted Price
If you are looking for a compelling, out-of-the-box way to play the strengthening real estate sector, this closed-end fund (“CEF”) is worth considering. It offers a healthy 7.2% yield (paid monthly), it trades at a discounted price (versus its NAV), and it has a growing track record of success. Plus the real estate sector is currently attractive (we’ll explain). In this report, we review the fund strategy, holdings, leverage, expense ratio, pricing/valuation, and why we believe the opportunity is particularly compelling if you are a long-term income-focused investor.
Attractive High-Income Closed-End Funds
This article details multiple attractive opportunities to capture >6%+ yields. And because these attractive income opportunities are all CEFs, they offer investors a little something extra in terms of their currently discounted prices versus their NAVs. If you're an income-focused investor, these CEFs are worth considering.
Top Big-Distribution CEF Ideas for 2018
If you are an income-focused value investor, some CEFs are currently offering highly attractive “double discounts” heading into 2018. CEF investors should be aware of the distribution income sources, including dividends as well as capital gains, for example. This article reviews our current CEF holdings and several top ideas for 2018.