Across the pond

Here are ten closed-end funds (CEFs) with notably high distribution yields as of early 2025. These funds span various sectors, including fixed income, infrastructure, and energy, offering diverse opportunities for income-focused investors:

🔟 Top High-Yield Closed-End Funds

1. PIMCO Dynamic Income Fund (PDI)
   • Yield: 13.7%
   • Focus: Multi-sector bonds, including high-yield credit and mortgage-backed securities.
   • Note: While offering substantial yields, PDI has faced challenges in covering distributions through net investment income, relying on leverage and derivatives. dividenddetective.com+7Blue Harbinger Investment Research+7Kiplinger+7
2. PIMCO Dynamic Income Opportunities Fund (PDO)
   • Yield: 11.2%
   • Focus: Non-agency mortgages, U.S. government bonds, and high-yield credit assets.
   • Highlight: Managed by PIMCO, known for its expertise in fixed income investments. Mitrade+3Kiplinger+3dividenddetective.com+3The Motley Fool+1Nasdaq+1Blue Harbinger Investment Research
3. BlackRock Debt Strategies Fund (DSU)
   • Yield: 11.04%
   • Focus: Primarily invests in corporate loans, some secured by collateral, offering a balance between yield and risk. Mitrade+2The Motley Fool+2Nasdaq+2Nasdaq+2Mitrade+2The Motley Fool+2
4. DoubleLine Income Solutions Fund (DSL)
   • Yield: 10.48%
   • Focus: Below-investment-grade bonds, asset-backed securities, bank loans, and collateralized loan obligations.
   • Management: Led by Jeffrey Gundlach, often referred to as the “Bond King.” Mitrade+2The Motley Fool+2Nasdaq+2Nasdaq+2Mitrade+2The Motley Fool+2The Motley Fool+2Nasdaq+2Mitrade+2
5. Advent Convertible and Income Fund (AVK)
   • Yield: 12.3%
   • Focus: Convertible bonds and income-generating securities, providing potential for both income and capital appreciation.
   • Advantage: Trades at a discount to NAV, enhancing its appeal. dividenddetective.com+7Forbes+7Kiplinger+7Kiplinger
6. Gabelli Utility Trust (GUT)
   • Yield: 12%
   • Focus: Utility companies, offering stable income streams.
   • Caution: Trades at a significant premium (~53%) to NAV, which may pose risks for new investors. Forbes
7. ClearBridge Energy Midstream Opportunity Fund (EMO)
   • Yield: 8.5%
   • Focus: Midstream energy companies, particularly master limited partnerships (MLPs).
   • Benefit: Provides exposure to energy infrastructure without the tax complexities of direct MLP investments. Kiplinger
8. Cohen & Steers Infrastructure Fund (UTF)
   • Yield: 7.63%
   • Focus: Stocks and debt of infrastructure companies, including utilities and energy firms.
   • Portfolio: Includes holdings like NextEra Energy and Duke Energy. Kiplinger+4Mitrade+4Nasdaq+4Mitrade+2Nasdaq+2The Motley Fool+2
9. Eaton Vance Enhanced Equity Income Fund (EOI)
   • Yield: Approximately 8.5%
   • Strategy: Covered-call writing on a diversified equity portfolio, with significant exposure to the technology sector.
   • Top Holdings: Includes major tech companies, benefiting from sector growth. Seeking Alpha
10. BlackRock Credit Allocation Income Trust (BTZ)
    • Yield: 9.2%
    • Focus: Investment-grade and high-yield corporate bonds.
    • Advantage: Trades at a discount to NAV, offering potential value for investors.

⚠️ Considerations for Investors

• Premiums and Discounts: Some CEFs trade at significant premiums (e.g., GUT), which can increase risk, while others at discounts (e.g., AVK, BTZ) may offer value opportunities.
• Distribution Sustainability: High yields are attractive, but it’s crucial to assess whether distributions are covered by net investment income or rely on return of capital, which may not be sustainable.
• Leverage Risks: Many CEFs use leverage to enhance yields, which can amplify both gains and losses, especially in volatile markets.
• Tax Implications: Consider the tax treatment of distributions, especially if investing through tax-advantaged accounts.

Given your location in England, it’s important to consider currency exchange risks and potential tax implications when investing in U.S.-based CEFs.

If you need further information on any of these funds or assistance in aligning them with your investment goals, feel free to ask !

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