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10 Rules For 10%+ Yields With Conservative Closed-End Funds

If you're looking for high-yield investments, closed-end funds (CEFs) are a great option. CEFs are a type of investment fund that offers a variety of benefits, including high dividends, discounts to net asset value (NAV), and diversification.

Here are 11 rules for finding safe CEFs that yield 10%+ dividends:

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  1. Buy the best. There are a lot of great CEFs out there, but not all of them are created equal. Do your research and choose CEFs that are managed by experienced teams with a proven track record.

  2. Don't buy into the "bond bear forever" narrative. The Federal Reserve's rate hiking mission will not bring a recession. In fact, when the economy slows, the Fed will likely ease rates. This will send rate-sensitive stocks, like dividend payers, soaring.

  3. Check the income source. Make sure the CEF you're considering has a diversified income stream. This will help to mitigate risk.

  4. Demand a discount. CEFs often trade at discounts to their NAV. This is a great opportunity to buy into a fund at a bargain price.

  5. Count your dividends. Don't just focus on the CEF's yield. Make sure you understand the fund's dividend history and payout ratio.

  6. Project your dividends. Use a tool like Income Calendar to track and project the dividend payments for your CEFs. This will help you to see how much income you can expect to receive over time.

  7. Mind your leverage. CEFs can use leverage to boost their returns. However, leverage also amplifies losses. Be sure to choose CEFs with a conservative leverage ratio.

  8. Choose bonds or stocks. Income investors often fall in love with bonds at exactly the wrong moments. Today, with investors shunning bonds, it's a great time to consider CEFs that invest in bonds.

  9. Diversify. Don't put all your eggs in one basket. Diversify your CEF portfolio across a variety of sectors and asset classes.

  10. Beware of pretenders. There are a lot of CEFs out there that promise high yields but don't deliver. Do your research and avoid CEFs with a history of dividend cuts or poor performance.

By following these 11 rules, you can find safe CEFs that yield 10%+ dividends and help you to reach your financial goals.

Additional tips:

  • Invest for the long term. CEFs are volatile investments, so be prepared to hold them for the long term.

  • Reinvest your dividends. This will help you to compound your returns over time.

  • Consider using a drip plan. A drip plan allows you to automatically reinvest your dividends, which can help you to avoid making emotional investment decisions.


Closed-end funds are a great way to generate high income from your investments. By following the 11 rules above, you can find safe CEFs that yield 10%+ dividends and help you to reach your financial goals. THIS IS NOT FINANCIAL ADVICE Join our stock market investing options trading discord

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