Interested in Eaton Vance Risk-Managed Diversified Equity Income Fund? Here are five stocks we like better.
Closed-end funds can offer high monthly dividend yields while diversifying away the company-specific risk tied to individual high-yield stocks.
ETJ, MEGI, and ARDC provide yields of 9.3%, 9.9%, and 10.9%, respectively, but each carries distinct fees, strategies, and risks.
Investors should weigh trade-offs such as MEGI's 2033 liquidation date, high expense ratios, and exposure to below-investment-grade debt in ARDC.
Ultra-high dividend yields for individual stocks may appeal to investors seeking additional income—after all, who doesn't want high dividend payments? At the same time, though, a very high yield can sometimes be a giant red flag for investors. If the yield is high because of a value trap in which the price of the stock is failing and the company is distressed, there is a growing risk of either a dividend cut or a continued decline to share price, or both.
#high #investors #stocks
Closed-end funds can offer high monthly dividend yields while diversifying away the company-specific risk tied to individual high-yield stocks.
ETJ, MEGI, and ARDC provide yields of 9.3%, 9.9%, and 10.9%, respectively, but each carries distinct fees, strategies, and risks.
Investors should weigh trade-offs such as MEGI's 2033 liquidation date, high expense ratios, and exposure to below-investment-grade debt in ARDC.
Ultra-high dividend yields for individual stocks may appeal to investors seeking additional income—after all, who doesn't want high dividend payments? At the same time, though, a very high yield can sometimes be a giant red flag for investors. If the yield is high because of a value trap in which the price of the stock is failing and the company is distressed, there is a growing risk of either a dividend cut or a continued decline to share price, or both.
#high #investors #stocks
28 days ago
