2024-04-14 09:00:00 ET
Summary
- BlackRock Enhanced Capital and Income Fund Inc is a closed-end fund that mainly invests in the equities of U.S. listed companies. It also writes call and put options to generate income.
- The CII CEF has a solid long-term record of performance; however, the yield is a bit on the lower side compared to other similar funds.
- We believe it is an attractive fund for income investors who do not mind a slightly lower yield in the range of 6% but desire higher long-term growth in return.
Introduction:
BlackRock Enhanced Capital and Income Fund Inc ( CII ) is a closed-end fund, or CEF, that was incepted in April 2004. The fund's primary objective is to provide current income and capital appreciation. The fund invests in diversified equities of common stocks, especially high-growth stocks, with the technology sector weighted 30%. It mostly invests in large-cap stocks that have a market capitalization of $10 billion or more. Even though the fund has the flexibility to invest globally, it is invested in U.S.-based stocks to the extent of 90%. In addition, it writes/sells call and put options on individual securities to generate income and reduce volatility. It uses up to 55% of the portfolio for writing options....
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For further details see:
CII: Yield Is Low At 6.25%, But Still A Worthy Income Investment