Latest news with #CEFs
Forbes
12 hours ago
- Business
- Forbes
3 Big Dividends That Could Ease Worries And Lead To Financial Freedom
Happy mature woman walking embraced with her friends in nature. Few things ease financial worry like knowing you can walk away from work anytime you want, having true financial freedom. Closed-end funds (CEFs) give us just that kind of security—and we talk about that a lot in my weekly articles and in my CEF Insider service. With yields of 8%, 9% and more, CEFs generate huge payouts that could let you retire earlier than you think. It's such a powerful—and overlooked—way to invest that it's worth revisiting again today. We'll color our discussion by looking at how some typical American retirees could retire with CEFs. And we're going to work in some real-life numbers, too. I can't stress enough that we're not doing anything exotic to grab these yields: One of these three CEFs invests in S&P 500 stocks. The others are almost as familiar, holding corporate bonds and publicly traded real estate investment trusts (REITs). More on these funds in a moment. First, let's look at some real figures to see how much income investors could potentially book from CEFs. First, let's get some data about the net worth of the average retiree. Fortunately, the Federal Reserve regularly collects this information. The numbers say something startling: The average retiree is doing well, with the 65-to-74-year-old cohort sporting an average net worth of $1.79 million in 2022, with some of that being in their primary residence. Since that was a lousy year for markets, that net worth is probably higher now. Of course, not everyone is doing well. Because many haven't been able to save as much as the top tier, the median retiree has a net worth of about $409,900. This means they need to rely on Social Security. However, even a less-wealthy retiree could have a comfortable retirement with the three funds I'm about to show you—and we'll get to those in just a moment. But first, let's talk about our average retiree, with that $1.79-million net worth. They probably have at least some of their wealth in S&P 500 index funds, which yield around 1.3%. That translates into $2,000 in monthly income if they had the full $1.79 million available to invest (an assumption we'll make as we move through this article). They could get much more through the three funds we'll discuss next—all of which will be familiar to CEF Insider readers. The Adams Diversified Equity Fund (ADX) yields 8.8% and holds well-known stocks like Apple (AAPL), Microsoft (MSFT) and Visa (V). It's also one of the world's oldest funds, having launched in 1929, days before that year's market crash. Moreover, ADX has a history of strong returns: It has crushed the S&P 500 for decades, including our holding period at CEF Insider, which began nearly eight years ago, on July 28, 2017. ADX Outperforms Despite that outperformance, ADX has a 7.5% discount to NAV that has been closing since the middle of 2024 but still remains quite wide. One other thing to bear in mind: ADX commits to paying 8% of NAV out per year as dividends, paid quarterly, so the payout does float as its portfolio value fluctuates. Next is the Nuveen Core Plus Impact Fund (NPCT), a 12.2%-yielding corporate-bond fund. Its discount has been shrinking in the last few years, from over 15% to around 4.1% today. Again, the portfolio shows why: NPCT's managers have picked up bonds from low-risk issuers, including utilities like Brooklyn Union Gas and financial institutions like Standard Chartered and PNC Financial Services Group. More importantly, they've taken advantage of higher interest rates to lock in high-yielding bonds with long durations, with an average leverage-adjusted duration of 8.4 years. (This measure takes the effect of the fund's borrowing into account, making it a more accurate description of rate sensitivity.) That stands to pay off when rates decline, cutting yields on newly issued bonds and boosting the value of already-issued, higher-yielding bonds like the ones NPCT owns. Let's wrap with the 12.3%-yielding Nuveen Real Asset Income and Growth Fund (JRI). Its portfolio features powerhouse REITs like shopping-mall landlord Simon Property Group (SPG) and Omega Healthcare Investors (OHI), which profits from the aging population by financing assisted-living and skilled-nursing facilities. That huge dividend has a history of growth, too: JRI Dividend The fund has seen its discount shrink to 3.1% from the 15% level it was at in mid-2023, even after the pandemic hit REITs hard, and that discount continues to have upward momentum. Put those three CEFs together and you have a 'mini-portfolio' yielding 11.1% on average. Here's how that income stream looks with $1.79 million invested. Income Potential As you can see, with these CEFs, the average retiree's net worth could fetch around $200,000 in annual income, or $16,630 per month. What about the median, though? Well, their $409,900 would bring in a nice income stream, too. Income Potential Now we've got $3,798 per month, a smidge higher than the median income for US workers (which is $3,518 per month, again per the Federal Reserve). Add the median $2,000 per month in Social Security benefits, and that turns into nearly $6,000 a month. Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great income ideas, click here for our latest report 'Indestructible Income: 5 Bargain Funds with Steady 10% Dividends.' Disclosure: none
Yahoo
3 days ago
- Business
- Yahoo
Nuveen Select Tax-Free Income Portfolios Announce Proposed Reorganizations and Shareholder Meeting Update
NEW YORK, June 17, 2025--(BUSINESS WIRE)--The Boards of Trustees of Nuveen California Select Tax-Free Income Portfolio (NYSE: NXC), Nuveen New York Select Tax-Free Income Portfolio (NYSE: NXN), and Nuveen Select Tax-Free Income Portfolio (NYSE: NXP) have approved a proposal to reorganize the funds. The proposed reorganizations, if approved by shareholders, would combine NXC and NXN into NXP. The reorganizations are intended to create a larger fund with lower net operating expenses and increased trading volume on the exchange for common shares. The proposed reorganizations for the funds are subject to certain conditions, including necessary approval by the funds' shareholders. NXC, NXN, and NXP will each hold their respective 2025 Annual Meetings of Shareholders to consider approval of the reorganization proposal and to elect Board Members on November 14, 2025. Detailed information on the proposed reorganizations and the candidates for election to each funds' Board will be contained in proxy materials expected to be filed in the coming weeks. To be considered for presentation at the 2025 Annual Meeting of Shareholders for NXC, NXN, or NXP, shareholder proposals submitted pursuant to Rule 14a-8 under the Securities Exchange Act of 1934 must be received at the offices of that fund, 333 West Wacker Drive, Chicago, Illinois 60606, no later than July 2, 2025. A shareholder wishing to provide notice in the manner prescribed by Rule 14a-4(c)(1) of a proposal submitted outside of the process of Rule 14a-8 for the funds' respective 2025 Annual Meetings of Shareholders must, pursuant to the funds' by-laws, submit such written notice to the fund no earlier than July 17, 2025 and no later than August 16, 2025. Timely submission of a proposal does not mean that such proposal will be included in a proxy statement. Nuveen is a leading sponsor of closed-end funds (CEFs) with $53 billion in assets under management across 45 CEFs as of 31 Mar 2025. The funds offer exposure to a broad range of asset classes and are designed for income-focused investors seeking regular distributions. Nuveen has more than 35 years of experience managing CEFs. About Nuveen Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.3 trillion in assets under management as of 31 Mar 2025 and operations in 32 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit Nuveen Securities, LLC, member FINRA and SIPC. The information contained on the Nuveen website is not a part of this press release. FORWARD-LOOKING STATEMENTS Certain statements made or referenced in this release may be forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to: market developments; legal and regulatory developments; the ability to satisfy conditions to the proposed reorganizations; and other additional risks and uncertainties. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Nuveen and the closed-end funds managed by Nuveen and its affiliates undertake no responsibility to update publicly or revise any forward-looking statements. The annual and semi-annual reports and other regulatory filings of Nuveen closed-end funds with the Securities and Exchange Commission ("SEC") are accessible on the SEC's web site at and on Nuveen's web site at and may discuss the abovementioned or other factors that affect Nuveen closed-end funds. The information contained on the Nuveen website is not a part of this press release. IMPORTANT INFORMATION In connection with the reorganization proposal discussed herein, the funds expect to file with the SEC solicitation materials in the form of a proxy statement and/or a joint proxy statement/prospectus that will be included in a registration statement on Form N-14. After the registration statement is filed with the SEC, it may be amended or withdrawn and the proxy statement and/or joint proxy statement/prospectus will not be distributed to shareholders unless and until the registration statement is declared effective by the SEC. Investors are urged to read the solicitation materials and any other relevant documents when they become available because they will contain important information about the reorganization proposal. After they are filed, free copies of the solicitation materials will be available on the SEC's web site at This communication is for informational purposes only and is not a solicitation of a proxy from any fund shareholder and does not constitute an offer of any securities for sale. No offer of securities will be made except pursuant to a prospectus meeting the requirements of Section 10 of the Securities Act of 1933. However, the funds, Nuveen Fund Advisors and certain of their respective directors/trustees, officers and affiliates may be deemed under the rules of the SEC to be participants in the solicitation of proxies from shareholders in connection with the reorganization proposal discussed herein. Information about the directors/trustees and officers of the funds may be found in their respective annual reports previously filed with the SEC. Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. Past performance is no guarantee of future results. Closed-end funds frequently trade at a discount to their net asset value. 4589858 View source version on Contacts For more information, please visit Nuveen's CEF homepage or contact: Financial Professionals:800-752-8700 Investors:800-257-8787 Media:media-inquiries@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 days ago
- Business
- Business Wire
Nuveen Select Tax-Free Income Portfolios Announce Proposed Reorganizations and Shareholder Meeting Update
NEW YORK--(BUSINESS WIRE)--The Boards of Trustees of Nuveen California Select Tax-Free Income Portfolio (NYSE: NXC), Nuveen New York Select Tax-Free Income Portfolio (NYSE: NXN), and Nuveen Select Tax-Free Income Portfolio (NYSE: NXP) have approved a proposal to reorganize the funds. The proposed reorganizations, if approved by shareholders, would combine NXC and NXN into NXP. The reorganizations are intended to create a larger fund with lower net operating expenses and increased trading volume on the exchange for common shares. The proposed reorganizations for the funds are subject to certain conditions, including necessary approval by the funds' shareholders. NXC, NXN, and NXP will each hold their respective 2025 Annual Meetings of Shareholders to consider approval of the reorganization proposal and to elect Board Members on November 14, 2025. Detailed information on the proposed reorganizations and the candidates for election to each funds' Board will be contained in proxy materials expected to be filed in the coming weeks. To be considered for presentation at the 2025 Annual Meeting of Shareholders for NXC, NXN, or NXP, shareholder proposals submitted pursuant to Rule 14a-8 under the Securities Exchange Act of 1934 must be received at the offices of that fund, 333 West Wacker Drive, Chicago, Illinois 60606, no later than July 2, 2025. A shareholder wishing to provide notice in the manner prescribed by Rule 14a-4(c)(1) of a proposal submitted outside of the process of Rule 14a-8 for the funds' respective 2025 Annual Meetings of Shareholders must, pursuant to the funds' by-laws, submit such written notice to the fund no earlier than July 17, 2025 and no later than August 16, 2025. Timely submission of a proposal does not mean that such proposal will be included in a proxy statement. Nuveen is a leading sponsor of closed-end funds (CEFs) with $53 billion in assets under management across 45 CEFs as of 31 Mar 2025. The funds offer exposure to a broad range of asset classes and are designed for income-focused investors seeking regular distributions. Nuveen has more than 35 years of experience managing CEFs. About Nuveen Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.3 trillion in assets under management as of 31 Mar 2025 and operations in 32 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit Nuveen Securities, LLC, member FINRA and SIPC. The information contained on the Nuveen website is not a part of this press release. FORWARD-LOOKING STATEMENTS Certain statements made or referenced in this release may be forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to: market developments; legal and regulatory developments; the ability to satisfy conditions to the proposed reorganizations; and other additional risks and uncertainties. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Nuveen and the closed-end funds managed by Nuveen and its affiliates undertake no responsibility to update publicly or revise any forward-looking statements. The annual and semi-annual reports and other regulatory filings of Nuveen closed-end funds with the Securities and Exchange Commission ('SEC') are accessible on the SEC's web site at and on Nuveen's web site at and may discuss the abovementioned or other factors that affect Nuveen closed-end funds. The information contained on the Nuveen website is not a part of this press release. IMPORTANT INFORMATION In connection with the reorganization proposal discussed herein, the funds expect to file with the SEC solicitation materials in the form of a proxy statement and/or a joint proxy statement/prospectus that will be included in a registration statement on Form N-14. After the registration statement is filed with the SEC, it may be amended or withdrawn and the proxy statement and/or joint proxy statement/prospectus will not be distributed to shareholders unless and until the registration statement is declared effective by the SEC. Investors are urged to read the solicitation materials and any other relevant documents when they become available because they will contain important information about the reorganization proposal. After they are filed, free copies of the solicitation materials will be available on the SEC's web site at This communication is for informational purposes only and is not a solicitation of a proxy from any fund shareholder and does not constitute an offer of any securities for sale. No offer of securities will be made except pursuant to a prospectus meeting the requirements of Section 10 of the Securities Act of 1933. However, the funds, Nuveen Fund Advisors and certain of their respective directors/trustees, officers and affiliates may be deemed under the rules of the SEC to be participants in the solicitation of proxies from shareholders in connection with the reorganization proposal discussed herein. Information about the directors/trustees and officers of the funds may be found in their respective annual reports previously filed with the SEC. Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. Past performance is no guarantee of future results. Closed-end funds frequently trade at a discount to their net asset value. 4589858
Forbes
6 days ago
- Business
- Forbes
3 ‘Secret' Income Plays Throwing Off Huge 7.5%+ Dividend Yields
Saving money concept Man hand putting Row and coin Write Finance Saving money concept Man hand ... More putting Row and coin Write Finance I'm just going to come out and say it: If you want to be financially independent (and who doesn't?), you must own closed-end funds (CEFs). For those 'in the know' about CEFs, the reason is simple: massive yields. As I write, closed-end funds yield 9.1% on average. And game-changing dividends like that are only one way CEFs reward us—and I'd argue they're not even the best one! The best-in-class CEFs out there—and here I'd definitely include the three we're going to get into below—also offer strong total returns, with price gains and dividends combining to hand us overall returns of 10%+ yearly. And with CEFs, we get a solid indication of when those returns may start to build. It's an easy-to-find indicator called the discount to net asset value (NAV). This discount stems from a key difference between CEFs and ETFs: CEFs can't issue new shares to new investors post-IPO, so their market prices are often different (and regularly lower) than their per-share portfolio values (their NAV, in other words). So if, say, you buy a CEF with a 10% discount, you're buying its portfolio for 10% less than you could if you bought its holdings on the open market. This sets up a nice 'rinse-and-repeat' cycle for us: We buy a discounted CEF, collect its huge income stream, then sell at a premium down the road. Of course, these kinds of opportunities don't tend to last, and in the last year we've seen more CEFs trade at smaller discounts as investors start to clue in. But investors are focusing very tightly on quality here, given recent uncertainty. That's got them zeroing in on only those CEFs with strong track records. There are, however, some gems that have been left behind. Let's look at three. First up is the Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (ETO), which should attract a fat premium given the interest in global stocks these days. Yet ETO, with a mix of American mega-caps like NVIDIA (NVDA) and foreign powerhouses like AstraZeneca (AZN), trades at a fat 8.7% discount today. That's despite its generous 7.9% dividend, which should be getting more attention. So, by the way, should the fund's performance. ETO Total Returns Beyond the discount and dividend, ETO's 12.3% annualized return on NAV (orange line above) should also be a shiny lure for investors. But as you can see, ETO's market price–based total return (in purple) has lagged, inflating its discount from where it was a half-decade ago. That's clearly an error on the market's part, and it makes ETO well worth a look today. We'll find an even bigger discrepancy with the Eaton Vance Tax-Managed Buy-Write Income Fund (ETB), a 9.1%-yielder holding S&P 500 mainstays like Apple (AAPL), Microsoft (MSFT), NVIDIA (NVDA), (AMZN) and Berkshire Hathaway (BRK.A). This high-powered roster should put ETB on investors' radar, yet the gap between its total NAV return (in orange below) and total price return (in purple) is huge. ETB Total Returns With a 11.3% annualized return over the last half-decade (based on NAV), ETB's managers have clearly done their job. Yet investors have taken little notice, causing its market price–based return to lag, and its discount to widen to 7.8%. Completing the picture is the fact that ETB has averaged a 1.7% premium in the last decade. That gives it plenty of upside as its overdone discount flips to the fund's 'normal' premium. Finally, consider the John Hancock Financial Opportunities Fund (BTO), which subscribers to my CEF Insider service might remember. We've held BTO twice in the past and have booked nice double-digit total returns both times. BTO, which yields 7.5%, focuses on the financial sector, mainly banking firms, with M&T Bank (MTB), Mississippi-based Renasant Corp. (RNST) and US Bancorp (USB) all top holdings. BTO Total Returns These stocks have given BTO a sprightly 18.4% annualized return on NAV (in purple above) in the last five years. Yet its NAV return is only slightly ahead of its market price–based return (in purple). This shows that investors are hesitant to sharply bid up the fund. This is an interesting chart: BTO is priced at a 5.5% premium currently, which sounds pricey but is actually a deal given the fund's long-term trend, which includes a premium that's hit double digits several times in the last decade. Investors have picked up on this, which is why BTO's pricing went from around par earlier this year to today's premium. Expect that premium to keep growing, especially if the stock market keeps rising, as well. Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great income ideas, click here for our latest report 'Indestructible Income: 5 Bargain Funds with Steady 10% Dividends.' Disclosure: none
Forbes
10-06-2025
- Business
- Forbes
When Diversification Fails: This 11.3% Dividend Has A Huge Hidden Cost
Business meeting, brainstorming sessions discuss analysis of investment growth graph and market ... More charts in financial reports and business investment strategy planning. The media is still obsessed with the 'sell America' trade. That is, in a word, overblown. But there is something valuable here—especially for us income investors. Because even though the US has the world's most diverse and dynamic economy, bar none, we do need to make sure we're spreading at least some of our assets beyond a single country or asset class. For maximum safety (both for our portfolio value and our income streams) we also need exposure to alternative asset classes beyond US blue chips, such as global stocks, real estate investment trusts (REITs) and corporate bonds. But here's where a potential pitfall lies: Important as diversification is, we can not make the common blunder of letting it take over our investment decisions. That way lies 'locked-in' ho-hum (or worse!) returns. I think it's better to be a little overexposed to, say, the US (or one specific asset class) and book greater returns than to suffer through year after year of missed profits. Let's unpack this more using three high-yield closed-end funds (CEFs) that show the right and wrong ways to diversify: The first two are US-focused but have completely different portfolios, with one holding blue-chip stocks and the other corporate bonds. Taken together, they're a great example of diversification done right. And we are, of course, talking income here, so I've included a dividend target, as well. In all of the examples we'll get to, we're aiming for a $100,000 yearly income stream. With, say, a collection of CEFs yielding 7%—an easy-to-get yield with these funds—you can get that $100K in payouts with just $1.43 million invested. That's less than a fifth of what you'd have to pile into the typical S&P 500 stock. For the most safety, though, we want to diversify so that when one asset class is down, another will pick up the slack. But again, we do not want to become so fixated on this that we let it drag down our overall returns. Let's start off with what's happened so far this year. The Nuveen S&P 500 Dynamic Overwrite Fund (SPXX), a CEF that yields 7.3%, is about flat, including reinvested dividends as I write this. The fund holds all the stocks in the S&P 500, as the name says, and sells call options on its holdings—a low-risk way to support its dividend. Meantime, the 14.1%-yielding PIMCO Dynamic Income Fund (PDI), the biggest corporate-bond CEF out there, has returned 8.7% year to date. Stocks Bonds DIversification PDI (in purple above) is easily covering its payouts this year, so we have no worries there. But if SPXX (in orange) doesn't recover, it would have to cut payouts or sell stocks—and eat into investors' capital—to maintain them. But fortunately, SPXX has outearned its payouts, with an 8.2% annualized total return, based on the performance of its underlying portfolio, in the last decade. So there are no worries here, either, for long-term SPXX holders. This combo, in other words, is an example of effective diversification: The stock and bond picks are working in tandem to deliver a strong average return (better than stocks alone for this year)—and we're getting a 10.7% average dividend, too. Not bad! Now let's look at a fund that offers 'one-click' diversification that sounds great—it may even tempt you to simply buy, call yourself 'diversified' and call it a day. But that would be a mistake, since not all diversification is created equal. That would be another CEF called the Clough Global Opportunities Fund (GLO). It holds the bulk of its portfolio in the US but devotes a large slice to the rest of the world, as well. That differs from SPXX's domestic focus and PDI's US-dollar-centric investments in bonds and bond derivatives. GLO's geographic diversification is clever, tilting toward US multinationals with foreign consumer bases while also including high-quality international firms like Airbus and ICICI Bank (IBN). Plus, the fund yields a generous 11.3% as I write this. That gets us our $100,000 income stream on just $884,000 invested. GLO Short Term Above we see GLO (in blue) nearly matching the top-flight run of our bond fund (PDI, in purple). So GLO's global setup has been a big hit so far this year. That makes sense, as foreign markets have beaten those of the US. So, GLO is a clear winner for income and diversification, right? Well, not so fast. GLO Long Term While SPXX (in orange above) and PDI (in purple) have had strong gains over the last decade, GLO is up a paltry 3.2% annualized, much less than its current yield. To be fair, this performance isn't entirely the fault of GLO's management: The rest of the world has lagged SPXX and PDI in the last 10 years. But the Vanguard FTSE All-World Ex-US ETF (VEU), in orange below, has nearly doubled GLO. (VEU is a good benchmark for global stocks.) GLO Underperforms As you can see, GLO (in purple) was a big winner during COVID and after, but in the end couldn't hold off VEU (in orange). This is why GLO is better avoided, even though it might seem like a good idea in the name of diversification. The bottom line is that when we diversify, we of course want to set ourselves up for long-term price gains and strong yields. Pairing top-quality stock and bond funds like PDI and SPXX can deliver these. But we do not want stocks or funds that will lag others (and particularly their own benchmarks) by wider and wider margins. That's why I see GLO as a sell. Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great income ideas, click here for our latest report 'Indestructible Income: 5 Bargain Funds with Steady 10% Dividends.' Disclosure: none
