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5 Best CEFs This Month For A 9% Yield (April 2024)

Central Securities Corp outperformed the S&P 500 as an actively managed closed-end fund. The fund has benefited from a highly concentrated portfolio with an overweight exposure to the financial sector and insurance industry. We urge caution towards the fund which could be prone to wider swings of volatility in a shifting market environment.

Closed-end funds (CEFs) are incredible wealth generators, combining huge (8%+, in many cases) dividends, with the potential for stock-like price gains.

For income investors, closed-end funds remain an attractive investment class that covers a variety of 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.

For income investors, closed-end funds remain an attractive investment class that covers a variety of 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.

Central Securities Corporation is a closed-end fund that operates a highly concentrated portfolio, including a large investment in a private insurer. Organized in 1929, Central has an excellent track record, earning 5-Stars from Morningstar over the 3, 5 and 10 year periods (and overall), making it a worthwhile holding for investors. Conservatively managed for the long run, Central is willing to hold blue-chip securities for decades, allowing them to compound without interruption.

For income investors, closed-end funds remain an attractive investment class that covers a variety of 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.

Everybody loves a bargain, including investors who can buy closed-end funds at discounts. A big advantage of discounts is that you have more assets working for you than you had to pay for. That means your investments earn a higher yield than they would have if you'd had to pay full price.

Central Securities Corporation is a closed-end investment company with a high dividend yield and a history of outperforming the S&P 500. CET's top holdings include Plymouth Rock Corporation and Progressive Corp, with close to 27% of its assets tied to the insurance industry. Despite outperforming markets in the long run, CET trades at a deep discount to its assets.

Central Securities Corporation: 7.1% Yield, Massive Price Discount