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Stock impact report

EVV: Dividend Cuts Likely To Continue If Interest Rates Decline [Seeking Alpha]

Eaton Vance Limited Duration Income Fund Common Shares of Beneficial Interest (EVV) 
Company Research Source: Seeking Alpha
EVV offers an 8.9% yield and trades at a 6.11% discount to NAV, but faces sustainability concerns as net investment income alone does not cover distributions. Heavy leverage (39.1% of assets) and significant below-investment-grade exposure heighten risks, especially if rate cuts are delayed. Dividend coverage remains challenged, and further rate declines could pressure earnings and lead to potential distribution cuts. alexsl/iStock via Getty Images Overview With the anticipation of interest rate cuts happening over the next twelve months, income funds are in a complicated spot. Eaton Vance Limited Duration Income Fund ( EVV ) provides exposure to a diverse range This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for i Show less Read more
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