Market Update – More CEFs with High Yields

I repeat the advice I gave you last week: we stay the course and move as soon as trading stabilizes.  This is a seriously oversold market.  Since there are no further shoes to drop after the  downgrade, we will begin to see some amazing buying opportunities emerge later  this week, along with options plays providing risk protection.  Once again, the market reaction to the turmoil has depressed  forward estimates of market demand. That, in turn, has further driven down  stock share values.

This is not to say that the market will not go lower.  However, you should create a watch list of securities you want to buy when the dust settles.  This will create an opportunity to pick up monthly dividend payers at a lower share price and higher yield.  Of course, you should dollar-cost average your buys so you don’t get burned by market volatility.

The one advantage to higher volatility is more option premium.  If you are looking at covered calls, you can sell in-the-money calls for more protection unless you want to keep the stock in your portfolio.  If your portfolio stocks have pulled back then you can reset your strike prices to continue to collect monthly income from option premiums.

Here is an updated list of CEFs that pay monthly income:


Closed-end Funds with High Yields
Click to enlarge

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