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Attractive 5.9% Yield CEF: Non-Traditional Income-Sector Exposure

If you like high income, but worry that your portfolio is too concentrated in traditional high-income sectors of the market, then this 5.9% yield (paid monthly) closed-end fund (“CEF”) is worth considering. This particular high-income CEF gives you important diversifying exposure to high-growth sectors (such as technology—a sector traditionally known for low yield), and it also trades at an attractive price. The price is attractive not only for the current discount to NAV, but because the underlying holdings are positioned for long-term gains—which will help the fund continue to pay you big steady income. It also employs a compelling covered-call strategy, it has a relatively low management fee (important!), and it has a rock-solid management company. In this report, we dive into the details.