In This Market, Are Dividends as High as 9.7% Really That Affordable?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Overview of Closed-End Funds (CEFs): CEFs are distinct from mutual funds and ETFs, often trading at discounts to their net asset values (NAVs), making them appealing for contrarian investors seeking high yields, with some funds offering dividends as high as 9.7%.
Highlighted CEFs and Their Strategies: Notable CEFs include Eaton Vance Tax-Advantaged Dividend Income Fund (EVT) with an 8.1% yield, Eaton Vance Tax-Managed Buy-Write Opportunities (ETV) at 8.3%, and ClearBridge Energy Midstream Opportunity Fund (EMO) yielding 9.7%, each employing unique strategies like leverage and covered calls to enhance returns.
Analyst Views on EMO
Wall Street analysts forecast EMO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EMO is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 46.660
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Current: 46.660
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About EMO
ClearBridge Energy Midstream Opportunity Fund Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund’s investment objective is to provide long-term investors a high level of total return with an emphasis on cash distributions. The Fund seeks to achieve its objective by investing primarily in energy midstream entities. The Fund may invest at least 80% of its Managed Assets in energy midstream entities including entities structured as both partnerships and corporations. The Fund considers investments in midstream entities as those entities that provide midstream services including the gathering, transporting, processing, fractionation, storing, refining, and distribution of oil, natural gas liquids and natural gas. Legg Mason Partners Fund Advisor, LLC (LMPFA) is the Fund’s investment manager and ClearBridge Investments, LLC (ClearBridge) is the Fund’s subadvisor.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
