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0 -0.00161500815660685 -0.00163132137031006 -0.00163132137031006 -0.000309951060358893 -0.00114388254486156 0.000815660685154958 0.00161500815660685
Stock impact report

3 Telltale Signs An 8%+ Dividend Is Built To Last [Forbes]

Liberty All-Star Equity Fund (USA) 
US:NYSE Investor Relations: all-starfunds.com
Company Research Source: Forbes
The older man has a thoughtful expression on his face, while the younger man is looking at him intently. ... More getty There are plenty of reasons to buy closed-end funds (CEFs) , but the one that most investors love most is pretty obvious. The income! The average CEF yields 8.6% as I write this. And while most investors have been conditioned to believe that this level of payout is unsustainable, this is not the case with CEFs. Many of these funds sport yields of 8% or more and haven't cut payouts in years, even decades. In fact, several have grown their dividends in that time. The reason why is simple: The stock market gains around 10.6% per year on average. So a CEF that invests in stocks and pays 10.6% per year can maintain payouts, theoretically, since the fund is just handing that profit to shareholders as a dividend. Of course, returns don't arrive smoothly every year, which is why portfolio construction, discounts and care around dividend payouts all matter. Show less Read more
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