Can you still get a 10% annual dividend yield in today’s market? Yes. We scanned the CEF (closed-ended funds) landscape to find the 5 highest yielding CEFs with monthly distributions. All of these CEFs have an annual yield above 10%. As you would expect, 4 of the 5 CEFs are trading at a premium to their NAV (net asset value) so you would add these stocks to your watchlist and wait to purchase on a market pullback. These are great investments to re-invest your dividends or to create a monthly passive income. A 10% yield will compound fast at a monthly distribution rate. Click the image below to enlarge.
Dreyfus High Yield Strategies Fund (DHF) is a non-diversified, closed-end management investment company. The Fund’s primary investment objective is to provide high current income by investing at least 65% of its total assets in income securities rated below investment grade. The fund also provides capital growth as a secondary objective. The Fund invests primarily in fixed-income securities of below investment-grade credit quality. Issuers of below investment-grade securities may include companies in early stages of development and companies with a highly leveraged financial structure. The Dreyfus Corporation (Dreyfus) serves as the Fund’s investment manager and administrator.
Alpine Total Dynamic Dividend Fund (AOD) is a diversified, closed-end investment company. The Fund’s investment objective is to invest in equity securities that provide high current dividend income. The Fund also focuses on long-term growth of capital as a secondary investment objective. In addition, the Fund has no limitations on the percentage of holdings that can be in either international or the United States companies. It invests in various sectors, including consumer discretionary, industrials, energy, information technology, materials, consumer staples, healthcare, financials, utilities and telecommunication services. Alpine Woods Capital Investors, LLC is the Fund’s investment adviser.
PIMCO High Income Fund (PHK) is a diversified, closed-end management investment company. The Fund’s primary investment objective is to seek high current income. Capital appreciation is a secondary objective. The Fund invests in a diversified portfolio of United States dollar-denominated debt obligations and other income-producing securities that are primarily rated below investment grade. The Fund seeks to invest at least 50% of its net assets in debt securities that are, at the time of purchase, rated below investment grade (below Baa by Moody’s Investors Service, Inc., below BBB by either Standard & Poor’s or Fitch, Inc., or unrated but judged by the investment manager to be of comparable quality), which may be represented by forward contracts or derivatives, such as options, futures contracts or swap agreements. Allianz Global Investors Fund Management LLC serves as the Fund’s investment manager. Its sub-advisor is Pacific Investment Management Company LLC.
Western Asset High Income Fund II Inc. (HIX) is a diversified, closed-end management investment company. The Fund seeks to maximize current income by investing at least 80% of its net assets, plus any borrowings for investment purposes, in high-yield debt securities. As a secondary objective, the Fund seeks capital appreciation to the extent consistent with its objective of seeking to maximize current income. The Fund invests in high-yield and emerging market instruments. The Fund invests in securities and distributes dividends from net investment income and net realized gains. It invests in corporate bonds and notes, collateralized mortgage obligation, collateralized mortgage obligation, collateralized senior loans, collateralized senior loans, convertible bonds & notes, sovereign bonds, sovereign bonds, common stocks, convertible preferred stocks and warrants. The Fund’s investment manager is Legg Mason Partners Fund Advisor, LLC.
AGIC Convertible & Income Fund II (NCZ), formerly Nicholas-Applegate Convertible & Income Fund II, is a diversified, closed-end management investment company. The Fund’s investment objective is to provide total return through a combination of capital appreciation and high current income. It invests in a diversified portfolio of domestic convertible securities, and non-convertible, high-yield bonds rated below investment grade. It seeks to invest at least 50% of its portfolio in convertibles. The Fund invests in sectors, such as advertising, airlines, aerospace and defense, auto components, commercial services and supplies, construction and engineering, diversified financial services, healthcare providers and services, and telecommunications. Allianz Global Investors Fund Management LLC serves as the Fund’s investment manager and is an indirect, wholly owned subsidiary of Allianz Global Investors of America L.P.