2025-04-21 11:08:19 ET
Summary
- Heightened market volatility presents unique buying opportunities for income investors, particularly in the technology and energy sectors, which show signs of bottoming as Q1 earnings season approaches.
- LMP Capital and Income Fund Inc offers a 10% yield, trades at a discount to NAV, and recently increased its monthly distribution, making the SCD CEF an attractive buy.
- Despite recent market declines, SCD's long-term outlook remains positive due to its high-quality holdings, strong fundamentals, and potential for total return and dividend growth.
- The fund's shift towards the energy sector and MLPs, amid market volatility, positions it well for long-term gains, reinforcing my buy rating on SCD.
Heightened market volatility in recent weeks has led to some unique buying opportunities for income investors with a long-term horizon. Although we may not have yet found a bottom in the stock market due to ongoing uncertainty over the impacts of tariffs on inflation and the global economy in general, there are some “green shoots” that may be tendrils of hope for a market recovery in the coming weeks or months. And although both the technology sector and the energy sector have been hurt by the market correction thus far in 2025, both sectors are starting to show signs of bottoming as we head into Q1 earnings season....
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SCD: This Hybrid Tech/Energy CEF Raised The Distribution, Now Has A Big Discount
