Big Discounts, Bigger Income
I love to collect massive dividends, and I love them to be on sale. Don't miss stretching your dollar as far as possible. We examine two wonderful opportunities.
10 Best CEFs This Month: Average Yield Of Nearly 9% (August 2025)
For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight the ten best CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select 10 CEFs every month from around 500 closed-end funds.
ADX: Discount Narrows Further, Likely Limiting Outsized Gains Moving Forward
ADX's shift to an 8% managed distribution policy has continued to narrow its discount, making it more attractive for income-focused investors. The fund's performance has outpaced the S&P 500 in share price returns, but future upside due to discount contraction is likely to be limited. ADX's portfolio closely mirrors the S&P 500, with heavy tech and Magnificent 7 exposure, but with fewer holdings and higher turnover to help fund its payout.
5 Best CEFs This Month For Yields Up To 13% (July 2025)
For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.
How To Build A $150,000 Portfolio For High Income Before Fed Rate Cuts
Cash yields may vanish within 12 months if Trump pressures Fed to cut rates by 300 basis points. High-income CEFs like UTG, BUI, and ADX offer equity-based, rate-sensitive yield without excessive leverage or junk padding. MLPs ET and EPD provide tax-advantaged ROC income with long-term power demand tailwinds from AI and data centers.
ADX: Solid Equity CEF But Expensive (Rating Downgrade)
ADX offers high income and blue-chip exposure, but its current valuation is less attractive, trading at the lowest NAV discount in a decade. The fund prioritizes distributions over capital appreciation, making it best suited for income-focused investors rather than those seeking growth. Recent changes to the distribution policy provide more consistent payouts, but tax efficiency remains a concern for non-tax-advantaged accounts.
ADX Looks Like A Dream, Until The Cycle Turns
ADX is a solid closed-end fund combining growth exposure with high-income distributions, but current valuations make it a risky bet this late in the cycle. The fund has a long-term track record dating back to 1929, having weathered major downturns like the Great Depression, World War II, stagflation and multiple bubbles. ADX trades at a discount to NAV, providing a slight value alpha, but this does not offset the elevated risk of investing in an overvalued market.
The Adams Diversified Equity Fund: An Underrated Investment With Some Minor Risks
I initiate coverage of Adams Diversified Equity Fund with a buy rating for its strong income and total return profile. ADX has outperformed the S&P 500 over the past decade, driven by concentrated large-cap tech exposure and consistent 8% annual payouts. The fund's diversified portfolio, focus on tech, and commitment to income make it well-positioned for continued solid returns as the economy strengthens.
ADX: The Right Balance Of Income And Active Growth
ADX offers a compelling blend of capital growth and healthy dividends, with a committed 2% quarterly payout and historically generous yields. The fund's active management provides outperformance over passive peers like SPY and dividend/value ETFs, with only marginally higher volatility. ADX avoids option-writing strategies, striking a better balance between income and capital preservation compared to typical income funds.
The Latest Debt Downgrade Is Our Shot At Cheap 9% Dividends
This latest US debt downgrade is a buying opportunity for us contrarians. I say that because we had the same (profitable) setup the last three times the ratings agencies took Uncle Sam's credit rating down a peg.
ADX Brings Forth 95+ Years Of Investment Wisdom
ADX offers diversified exposure to high-quality, large-cap equities, with a disciplined, research-driven investment process and strong historical outperformance. The fund is heavily weighted in technology, with top holdings like Nvidia, Microsoft, and Amazon positioned for potential growth. ADX's closed-end structure, low 0.50% expense ratio, and current 8.2% discount to NAV present an attractive entry point for investors.
ADX: Nearly 10% Yield, Good Discount, And Solid Past Performance
Adams Diversified Equity Fund (ADX) is a closed-end fund that invests in a diversified portfolio of equities of large-cap U.S.-listed stocks, with nearly 30% weighting to technology stocks. ADX uses no leverage and does not employ derivative strategies. ADX's past performance is solid, especially its long-term performance. In some ways, this fund is a proxy for the S&P500 in terms of capital appreciation, with the benefit of nearly 10% income.
