3 Closed-End Funds to Maximize Dividend Payments

Three closed-end funds stand out for their high dividend yields while diversifying away company-specific risk, according to a recent article. Eaton Vance Risk-Managed Diversified Equity Income Fund (ETJ) provides a 9.3% yield, combining traditional stocks with short-dated options on the S&P 500. NYLI CBRE Global Infrastructure Megatrends Term Fund (MEGI) offers a 9.9% yield, focusing on sectors like decarbonization and digital transformation.

Ares Dynamic Credit Allocation Fund (ARDC) leads with a 10.9% yield, investing in high-yield bonds and related products. Each fund has distinct fees, strategies, and risks, such as MEGI's 2033 liquidation date and ARDC's exposure to below-investment-grade debt. Despite these considerations, high-yield closed-end funds can be a more compelling source of dividend income than individual stocks due to their diversification, ease, and regular monthly distributions.