EDF - Four Unloved Income Funds With Ultra High Yield (15%+) Distributions
2024-02-08 13:55:22 ET
Summary
- I am an income-oriented investor focused on high-yield closed-end funds and ETFs to compound returns in retirement.
- Income investing requires picking investments that provide a steady distribution, rather than trying to time the market.
- I discuss four closed-end funds that are unloved by others, yet offer high distribution yields and I expect their income stream to continue and grow in 2024.
As a mostly income-oriented investor now that I have reached retirement age, I am constantly on the lookout for closed-end funds and ETFs that pay a regular high-yield income stream, which I use to compound my returns over time in my Income Compounder portfolio . As such, I am far more interested in the amount of income that my investments provide to me each month than I am concerned with the price or the total “value” of my holdings. When you hear some people say that you need at least X amount of money to survive in retirement, they are making assumptions about a lot of things they may not know including how much you will be spending, how much your investments return, what is the risk to your future income, etc. In my personal situation, as long as my income from my investments exceeds the amount that I plan to spend each month and my future income stream continues to grow, I expect to be in good financial shape in retirement.
With income investing you do not need to make two correct guesses to make money like you must with growth or value stocks (i.e., buy low, sell high at the right time). You only need to pick a horse that will finish the race, not necessarily the one that will win it. Growth or value investors are constantly trying to determine which companies will succeed with higher interest rates for longer, or lower interest rates later this year if the Fed decides to cut. While many try to pile into growth stocks with momentum like Nvidia, Amazon, or Tesla, income investors only need to buy stocks or funds that will continue to pay a steady distribution, in some cases every month....
Four Unloved Income Funds With Ultra High Yield (15%+) Distributions