First Trust Enhanced Equity Income Fund Boosts Quarterly Distribution to $0.35 Per Share

The First Trust Enhanced Equity Income Fund (FFA) has announced an increase in its quarterly distribution, raising it to $0.35 per share. This move reflects the fund's managed distribution policy, which aims to provide a high level of current income and gains, with capital appreciation as a secondary objective. The fund invests in a diversified portfolio of U.S. stocks and writes covered call options to enhance income.



The fund's distribution rate is now 6.72%, with a distribution frequency of quarterly. This increase in distribution is a testament to the fund's consistent performance and its ability to generate high current income. The fund's 5-year annualized total return stands at 7.73% as of November 29, 2024, demonstrating its long-term growth potential.

The fund's portfolio is diversified across various sectors, with top holdings including Microsoft Corp, Apple Inc, and NVIDIA Corp. This diversification helps mitigate risk and ensures stable income generation. The fund's annual portfolio turnover is 26.00%, indicating a moderate level of trading activity.

The First Trust Enhanced Equity Income Fund's managed distribution policy has contributed to its consistent performance and high yield. By writing covered call options, the fund enhances its income while limiting downside risk. This strategy, combined with its diversified portfolio, allows the fund to generate high current income and potential capital appreciation.

Investors seeking high current income and long-term growth should consider the First Trust Enhanced Equity Income Fund. Its managed distribution policy, diversified portfolio, and covered call options strategy make it an attractive option for income-oriented investors. As the fund continues to perform well and increase its distributions, it remains a strong contender in the closed-end fund space.