"Closed-End Funds (CEFs) Offer High Dividends and Potential Price Gains Despite Mainstream Investor Disinterest"

A woman was spotted using her smartphone to scan barcodes while shopping at a supermarket. Closed-end funds (CEFs) are being recommended as a top income investment due to their high dividends and potential for price gains. The strategy involves buying CEFs trading at discounts to net asset value (NAV) and selling them at par or a premium. The Liberty All-Star Growth Fund (ASG) is highlighted as a growth stock-oriented CEF with an 8.5% dividend and a 10% discount to NAV, making it cheaper than it has been in nearly a decade. The article also discusses the impact of the Federal Reserve on CEF discounts and prices.The article examines the Nuveen NASDAQ 100 Dynamic Overwrite Fund (QQQX), which generates income by selling call options on its holdings and supports its 6.8% payout. Despite the fund's strategy potentially causing underperformance during volatile times, QQQX outperformed during the pandemic due to overselling by investors. The article highlights the inefficiencies in closed-end funds (CEFs) and how discounts on QQQX and ASG have remained since the pandemic panic, as mainstream investors have lost interest in CEFs due to higher yields in savings accounts and CDs.Due to the Federal Reserve's aggressive interest rate hikes, many mainstream investors have lost interest in closed-end funds (CEFs), causing them to sell off their CEFs in favor of higher yielding savings accounts and CDs. However, this is not logical as CEFs still offer higher yields and compounding benefits. The Financial Times has even published columns asking readers to explain CEFs, indicating a hidden market of people who love them. With the Fed expected to cut rates, high-yield savings accounts and CDs will yield less, making discounted CEFs with 8%+ yields more attractive to investors.