These Huge Yields (Up to 9.1%) Have a "Secret" Discount Set to Vanish
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Importance of Closed-End Funds (CEFs): The article emphasizes that owning closed-end funds is crucial for achieving financial independence due to their high average yields of 9.1% and potential total returns exceeding 10% annually, driven by discounts to net asset value (NAV).
Highlighted CEFs: Three specific CEFs are discussed as undervalued opportunities: Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (ETO), Eaton Vance Tax-Managed Buy-Write Income Fund (ETB), and John Hancock Financial Opportunities Fund (BTO), each offering attractive dividends and significant growth potential despite current market pricing discrepancies.
Analyst Views on BTO
Wall Street analysts forecast BTO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BTO 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.
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 36.220
Low
Averages
High
Current: 36.220
Low
Averages
High
About BTO
John Hancock Financial Opportunities Fund (the Fund) is a closed-end management investment company. The Fund's primary investment objective is to provide a high level of total return consisting of long-term capital appreciation and current income. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of United States (U.S.) and foreign financial services companies of any size. These companies may include, but are not limited to, banks, thrifts, finance and financial technology companies, brokerage and advisory firms, real estate-related firms, insurance companies and financial holding companies. The Fund may invest up to 20% of its total assets in common and preferred equity securities and other preferred securities of foreign banking, lending and financial services companies, including securities quoted in foreign currencies. The Fund's investment adviser is John Hancock Investment Management LLC.
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.
