BOE - BOE: A Defensive 7% Yielding Fund For Tough Times Ahead

2024-05-21 05:35:00 ET

Summary

• BlackRock Enhanced Global Dividend Trust aims to provide current income and gains to investors, with long-term capital appreciation as a secondary goal.
• BOE invests at least 80% of its assets in dividend paying securities, with around 30%-40% in non US securities.
• BOE sells calls against its equity holdings, with premiums supplementing dividends to help reach income objectives.
• We look at the fund's performance and dividend yield and tell you why it is likely to do better than the broader SPY.

BlackRock Enhanced Global Dividend Trust ( BOE ) is a closed end fund that seeks to provide current income and gains to its investors. It also aims to achieve long-term capital appreciation, but that goal is secondary to the aforementioned current objectives. The fund goes about achieving this by investing at least 80% of its assets in dividend paying securities. It also aims to invest at least 30%-40% in non US securities, depending on the prevailing market conditions. As of March 28 of this year, the foreign securities made up around 40%....

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