BXMX - BXMX: Reliable Income But Don't Expect Any Growth
2024-01-29 14:40:39 ET
Summary
- Nuveen S&P 500 Buy-Write Income Fund focuses on generating income through covered calls, offering a distribution yield of 7.2%.
- Covered call funds have gained popularity for their ability to generate income in all market conditions.
- Virtually all of this fund's total returns come from distributions and there is no dividend growth so it will only suit certain investors.
- At the end of the day, it all comes down to whether you are bullish or bearish on the market.
Nuveen S&P 500 Buy-Write Income Fund ( BXMX ) is an actively managed CEF (closed end fund) that mainly focuses on generating income by writing covered calls on its holdings. The fund currently comes with a distribution yield of about 7.2% and trades at a discount close to 10% which we'll discuss in further detail below. All in all, this seems like a decent fund to generate some income, but it has some negatives as well, such as underperforming in total returns and lacking dividend growth....
BXMX: Reliable Income But Don't Expect Any Growth