MCN - IGD: Failed To Cover The Distribution For The Second Straight Year But Hikes Anyway

2024-05-12 04:10:14 ET

Summary

• Voya Global Equity Dividend and Premium Opportunity Fund offers income-focused investors the potential for capital gains without sacrificing yield.
• The fund's current yield of 11.61% is higher than similar funds (or anything else) in the market.
• While IGD has underperformed the S&P 500 Index recently, it has delivered a 4.02% gain and a 7.54% total return over the past four months.
• The fund invests in very different companies than most other closed-end funds, which could appeal to those investors who want to diversify away from American tech stocks.
• The fund trades at a huge discount, but it has failed to cover its distribution for two straight years.

The Voya Global Equity Dividend and Premium Opportunity Fund ( IGD ) is a closed-end fund that income-focused investors can employ as a method of achieving their goals. There are many closed-end funds that can be used to achieve this objective, but the Voya Global Equity Dividend and Premium Opportunity Fund has an advantage over many of those funds because it does not require investors to sacrifice the capital gains potential that can accompany an investment in common equities. After all, this fund does not invest in fixed-income securities like most other income-focused closed-end funds, so it does have the ability to benefit from rising equity prices. Investors in this fund also do not need to sacrifice yield to gain exposure to equity upside, as this fund's 11.61% current yield is higher than most other things in the market today. The fund's yield also compares reasonably well with that of its peers:

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