BDJ - BDJ: Discount Staying Wide Staying Attractive

2024-03-16 09:46:53 ET

Summary

• BlackRock Enhanced Equity Dividend Fund (BDJ) is trading at a historically attractive discount level, making it a candidate for a potential investment.
• BDJ utilizes a covered call strategy and benchmarks the Russell 1000 Value Index and MSCI USA Value Call Overwrite Index.
• The fund's distribution yield is 8.41%, and its monthly distribution has remained reliable and steady (seeing a couple of increases) for over a decade.

Written by Nick Ackerman, co-produced by Stanford Chemist.

BlackRock Enhanced Equity Dividend Fund ( BDJ ) hasn't moved too much since our last update near the end of December. The fund has provided some positive returns, but the discount has remained basically static during this time. That means it's still trading near historically wide levels, and that makes it an attractive level, in my opinion. Of course, the longer this discount remains around this level - the more "normal" this discount will become....

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