AGG - EVT: Solid CEF For Those Willing To Sacrifice Some Total Return For A Lot Of Income

2024-01-30 11:12:48 ET

Summary

• Eaton Vance Tax-Advantaged Dividend Income Fund offers a high level of regular monthly income for income-oriented investors.
• The fund has seen a 9.76% increase in share price since the last article was published, slightly lower than the S&P 500 Index.
• The fund's portfolio is mostly invested in value stocks, which provides a nice change from the "Magnificent 7" that dominates most equity funds.
• The fund managed to fully cover its 8.06% distribution during the most recent full-year period.
• The fund is trading at a discount and looks like a reasonable option if you are willing to accept a little underperformance in exchange for income.

The Eaton Vance Tax-Advantaged Dividend Income Fund ( EVT ) is a closed-end fund aka CEF that income-oriented investors can purchase as a means of achieving their goals of receiving a high level of regular monthly income from the assets in their portfolio. This is naturally quite useful for retirees or other individuals who depend on their assets to provide them with the money that they require to support their lifestyles or simply pay their bills. The EVT fund manages to do reasonably well in this task, as its 8.06% current yield is substantially higher than most American common stock indices. One thing that might be nice for investors who are bullish on the stock market, in general, is that this fund does not rely on options or other strategies that may sacrifice capital gains for income. It should be immediately obvious why this is likely to appeal to many readers.

As regular readers can no doubt remember, we last discussed the Eaton Vance Tax-Advantaged Dividend Income Fund in November. The optimism surrounding interest rate cuts since that time has been somewhat tempered, as the strength of recent economic reports and the rise in headline inflation during the month of December has greatly weakened the case for near-term rate cuts. However, the fund still had the opportunity to benefit from the temporary bull market. As we can see here, the fund's shares have risen by 9.76% since the date that my previous article on this fund was published:

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