ETO - Eaton Vance Raises Distributions On All Equity CEFs

2024-04-08 15:59:01 ET

Summary

• After speculating earlier this year that Eaton Vance would raise its distributions on its equity CEFs, that was finally confirmed last week on April 1.
• The distribution increases range from 4.6% for ETV to 32.2% for EOS which gets most of the funds back up to their previous distribution levels from 2022.
• Even with the distribution increases, the NAV yields of the Eaton Vance equity CEFs still stay between the sweet-spot 7.5% to 8.5%, which is very attainable for these funds.
• But due to the discounted market prices of the Eaton Vance funds, the windfall market yields jump up to between 8.5% and close to 10% currently.
• I continue to believe that the Eaton Vance option-income and leveraged-income CEFs offer the best suite of funds for income and growth seeking investors.

It took a little longer than I expected, but Eaton Vance finally raised the distributions on all of their equity based CEFs on April 1, and not just the ones I thought would get a raise....

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