Top Closed-End Funds Promising High Passive Income Returns

Investors can explore attractive closed-end funds for passive income. These CEFs like the AllianceBernstein Global High Income Fund offer yields up to 11.2%, making them noteworthy options for income-focused investors.

Date: 26-01-2025

AI Rating: 6

Investment Opportunities in Closed-End Funds

This report highlights several closed-end funds (CEFs) that could provide substantial passive income for investors. CEFs can be particularly appealing for income investors due to their typically higher yields compared to traditional investment options.

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This analysis focuses on the yielding potential of five specific CEFs: AllianceBernstein Global High Income Fund (6.9% yield), BlackRock Debt Strategies Fund (11.04% yield), Cohen & Steers Infrastructure Fund (7.63% yield), DoubleLine Income Solutions Fund (10.48% yield), and Pimco Dynamic Income Opportunities Fund (11.2% yield). Investors are informed that a $10,000 investment in each fund could yield over $4,700 in passive income. Although this is an enticing prospect, it is vital to note that CEFs come with inherent volatility and potential risks. There is the possibility of distribution fluctuations, which could lead to lower returns than expected.

Furthermore, the report mentions that CEFs often utilize leverage, exemplified by the DoubleLine Income Solutions Fund's leverage of 22.05%. While this can enhance income, it may also amplify losses.

In terms of costs, some CEFs charge high expense ratios, which can affect net income. The BlackRock Debt Strategies Fund, for instance, incurs a gross expense ratio of 2.47%. The net yields provided are already adjusted for these fees.

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