EIC - Top 10 Holdings In My 15% Yielding Income Compounder Portfolio

2024-05-09 13:19:47 ET

Summary

• The Income Compounder portfolio holds high-yield closed-end funds and ETFs that generate an average annual yield of 15%.
• The Cornerstone funds are the best for taking advantage of the dividend reinvestment plan due to their ability to reinvest at net asset value.
• my top 10 income holdings each generate an average of $2,000 per year and have shown mostly unrealized gains due to reinvestment and buying at opportune times.

In my April 3, 2024 article on Closed End Funds that offer a discount to DRIP , I mentioned that there are about a dozen that I own and that yield on average about 15% annually based on current prices and distribution policies. Many of the CEFs that offer a high yield distribution also offer a discount to DRIP (reinvest) to encourage investors to buy more shares. When those shares trade at a premium to NAV, the shareholders benefit from reinvesting in two ways: they get more shares at a discount to the market price growing their own portfolio NAV while increasing future income, and they help to grow the NAV of the funds that they are buying shares in....

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