BOE: Diversifying Your Income From Overseas

2025-01-22 07:50:59 ET

Summary

• BlackRock Enhanced Global Dividend Trust (BOE) offers an 8.8% dividend yield and monthly payouts, making it attractive for income-focused investors seeking global diversification.
• BOE's strategy focuses on dividend growth companies, with significant exposure to tech, industrial, and financial sectors, but relies heavily on net realized gains.
• The fund trades at a 7.8% discount to NAV, but historical discounts suggest waiting for a more attractive entry point.
• Recent dividend increase raises concerns about sustainability, given BOE's inconsistent net investment income and reliance on market momentum for growth.

Overview

I've covered a plethora of different income focused funds over the last twelve months but the majority of those insights were to assets that had an exclusive focus on US-based investments. Now that market indexes such as the S&P 500 and Nasdaq continue to close near record highs, it may be a good idea to start diversifying our portfolio and income streams outside of the US as a strategic hedge. BlackRock Enhanced Global Dividend Trust ( BOE ) operates as a closed end fund that has the primary objective of providing current income for shareholders, through its diverse portfolio of equities and inclusion of a covered call option strategy....

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