EOS - EOS: Strong Performance Distribution Increase And An Equity Portfolio
2024-05-23 07:15:44 ET
Summary
- The Eaton Vance Enhanced Equity Income Fund II offers income-focused investors the opportunity to achieve their goals without sacrificing upside potential.
- The fund has a high yield of 8.71%, which compares favorably to yields available from broad market indices.
- The fund's strategy of writing call options against individual stocks in its portfolio provides a higher yield and potential for income generation.
- The fund's total returns have compared pretty well with the S&P 500 Index over the past five years, which should satisfy investors who want income and performance.
- The fund just raised its distribution to its highest level in history and is fully covering it.
The Eaton Vance Enhanced Equity Income Fund II ( EOS ) is a closed-end fund that income-focused investors can employ as a method of achieving their goals. As the name of this fund suggests, the Eaton Vance Enhanced Equity Income Fund II does not require investors to sacrifice the upside potential that can be achieved by investing in common equities. This is something that should be rather appealing right now since, as I pointed out in a recent article , the yields available from most fixed-income investments are still too low to beat inflation after taxes. As such, investors who are seeking to both preserve the purchasing power of their assets and generate income will need to invest in a closed-end fund on the equity side of the capital markets. The Eaton Vance Enhanced Equity Income Fund II appears to fit the bill here, as it invests in common stocks and boasts an 8.71% yield at the current price.
The Eaton Vance Enhanced Equity Income Fund II has a very respectable yield, especially when we compare it to the yields currently available from the broad market indices:
EOS: Strong Performance, Distribution Increase, And An Equity Portfolio