Boost Your Income! Why This Closed-End Fund Surpasses Vanguard's High Dividend Yield ETF

Are you tired of watching your investment portfolio fluctuate with the market's ups and downs? Do you wish you could generate a steady stream of income, regardless of the market's performance? Look no further than Cohen & Steers Quality Income Realty Fund (RQI), a closed-end fund that has consistently outperformed Vanguard's High Dividend Yield ETF (VYM) in terms of dividend yield, consistency, and growth. Let's dive into the reasons why RQI might be the perfect addition to your investment portfolio.



First and foremost, RQI offers a significantly higher dividend yield than VYM. As of 10/13/2023, RQI boasts an annualized forward dividend yield of 8.00%, compared to VYM's 2.61%. This means that for every $100 you invest in RQI, you'll receive $8 in dividends annually, compared to just $2.61 from VYM. That's a substantial difference that can make a significant impact on your overall income.

But it's not just about the quantity of dividends; it's also about the consistency and growth of those dividends. RQI has a 5-year average distribution growth rate of 5.50% and a 10-year average distribution growth rate of 6.20%. This means that not only has RQI been paying consistent dividends, but it has also been increasing those dividends over time. In contrast, VYM has a 5-year average dividend growth rate of 7.00% and a 10-year average dividend growth rate of 8.00%. While VYM's growth rate is impressive, it's important to note that RQI's higher dividend yield more than makes up for the slight difference in growth rate.



Now, you might be wondering how RQI is able to offer such a high dividend yield and consistent growth. The answer lies in the fund's investment strategy and portfolio composition. RQI primarily invests in equities and preferred securities of real estate companies, including REITs. This focus on real estate allows RQI to generate a steady stream of income through rent and other property-related revenues. Additionally, RQI employs fundamental analysis to identify undervalued and high-growth potential investments, further enhancing the fund's income-generating capabilities.

In contrast, VYM is an ETF that tracks the performance of the FTSE High Dividend Yield Index, which consists of stocks with high dividend yields. While VYM's diversified portfolio offers a degree of stability, it may not be able to match the income-generating potential of RQI's focused real estate strategy.

Another factor to consider is the use of leverage by RQI. While leverage can amplify both income and capital appreciation, it also introduces special risks and costs. RQI's use of leverage can potentially enhance its returns, but it also increases the fund's volatility and expenses. This is something to keep in mind when considering RQI as an investment option.

That being said, RQI's higher dividend yield, consistent dividend growth, and focused real estate strategy make it an attractive option for income-oriented investors. If you're tired of watching your portfolio fluctuate with the market and wish you could generate a steady stream of income, consider adding Cohen & Steers Quality Income Realty Fund to your investment portfolio. With its impressive dividend yield, consistent growth, and focused real estate strategy, RQI has the potential to surpass Vanguard's High Dividend Yield ETF and boost your income to new heights.

So, what are you waiting for? Say goodbye to market volatility and hello to consistent, high-yielding income with RQI. Your future self will thank you!