It is getting difficult to find high yields in the closed-end funds (CEF) these days. Below is a table with 5 potential candidates. All of these CEFs trade at a premium except Alpine Total Dynamic Dividend (AOD) which is trading at a -3% discount. PIMCO High Income is trading at a 52% premium of net asset value. All of these CEFs pay monthly income. These CEFs should remain on your watchlist. If they pull back in price then you may enter a new position if you are seeking high yield investments.
Ticker | Fund Name | Closing | Price | NAV | Distribution | Premium / |
Price | Change | Rate | Discount | |||
PHK | PIMCO High Income Fund | $13.72 | ($0.06) | $9.01 | 10.66% | 52.28% |
AOD | Alpine Total Dynamic Dividend | $6.19 | ($0.02) | $6.39 | 10.66% | -3.13% |
NCZ | AGIC Convertible & Income II | $9.63 | ($0.02) | $8.51 | 10.59% | 13.13% |
NCV | AGIC Convertible & Income | $10.36 | ($0.07) | $9.37 | 10.42% | 10.62% |
DHF | Dreyfus High Yield Strategies | $4.96 | ($0.02) | $4.17 | 10.40% | 18.94% |
PIMCO High Income Fund (the Fund) 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.
Alpine Total Dynamic Dividend Fund (the Fund) 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.
AGIC Convertible & Income Fund II (the Fund), 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.
AGIC Convertible & Income Fund (the Fund), formerly Nicholas-Applegate Convertible & Income Fund, 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. It invests in sectors, such as advertising, apparel, auto components, banks, diversified financial services, entertainment, miscellaneous manufacturing and retail. 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. (Allianz Global). Its sub-advisors are Pacific Investment Management Company LLC, Allianz Global Investors Capital LLC and NFJ Investment Group LLC.
Dreyfus High Yield Strategies Fund (the Fund) 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.