| | | A 7.9% Payer With a Soaring Payout
Eaton Vance Tax-Advantaged Global Dividend Income Fund (ETG), a CEF with a 7.9% yielder that pays monthly and recently raised its payout a sizzling 27%!
Most folks will tell you that payout growth like that is impossible with a high-yield investment like this, but ETG is proof that they’re wrong:
ETG’s 7.9% Payout Rebuts the Naysayers
Source: CEF Connect
The fund gives us broad global diversification, with 34% of the portfolio in Europe and 7% in the Asia-Pacific region. Those international plays are anchored by stocks here in North America, with dominant US names topping the portfolio, such as Microsoft (MSFT), Alphabet (GOOGL), Amazon.com (AMZN), Apple (AAPL) and Coca-Cola (KO), which all show up in ETG’s top-10 holdings.
This mix has delivered a total return far higher than that of the Vanguard Total World Stock ETF (VT) over the last 12 tumultuous months, again proving the value of professional management:
ETG Crushes the ETF, With Most of Its Return in Dividends
Put it all together and you have a perfect safety + growth setup for these wild markets. And we can look to some more upside from the discount: ETG trades at a 3.8% discount today, and it’s traded around par numerous times in the past year.
Source: Brett Owens, Contrarian Outlook |
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