URTH - BOE: A Good Income Fund Or A Hedge Against Market Weakness (Rating Upgrade)

2024-02-23 17:33:52 ET

Summary

• The BlackRock Enhanced Global Dividend Trust offers a high level of income with a current yield of 7.40%, higher than most stock indices.
• The BOE closed-end fund's strategy includes writing covered call options, and providing a source of income from the premiums received.
• The BOE fund's performance has been impacted by its covered call strategy, underperforming during bull markets but potentially outperforming during flat or bear markets.
• The fund's distribution appears to be fully covered for the moment, as NAV has increased since the start of 2023.
• The BOE fund is currently trading at an enormous discount to NAV, so it might be worth picking up as a hedge against any market weakness.

The BlackRock Enhanced Global Dividend Trust ( BOE ) is a closed-end fund, or CEF, that specializes in providing investors with a very high level of income. It does this task quite well, as the fund's 7.40% current yield is quite a bit higher than most of the American and foreign stock indices. For example, consider the following:

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