Three closed-end funds have provided investors with monthly dividend checks yielding between six% and 12% per month [1, 2].
These funds offer a high-income alternative for investors seeking regular cash flow, though the reported yields vary significantly across financial reporting sources.
The funds have maintained these monthly payments for over 20 years [1]. To generate this level of income, the funds utilize closed-end fund discounts and floating-rate loan collateral [2].
Reports on the exact yield percentages differ between financial outlets. One source said the monthly yield range is six% to eight% [1]. Another source said the range is higher, from eight% to 12% per month [2].
Further discrepancies appear in specific fund performance data. Some reports suggest individual fund yields of 13% and eight% per month [3], while other data suggests the yield is simply over 10% per month [4].
Closed-end funds differ from open-end mutual funds because they issue a fixed number of shares through an initial public offering. Because they trade on exchanges, they often trade at a discount or premium to their net asset value, a mechanic these funds use to enhance income generation [2].
Investors typically look for these types of vehicles during periods of market volatility to secure a steady stream of income that is not solely dependent on equity price appreciation.
“Three closed-end funds have provided investors with monthly dividend checks yielding between six% and 12% per month”
The use of floating-rate loan collateral and fund discounts allows these vehicles to produce yields far exceeding traditional dividend stocks. However, the wide variance in reported monthly yields—ranging from six% to 13%—suggests significant volatility or differing accounting methods that investors must evaluate against the risk of capital erosion.
