Unlocking Dividend Potential: 3 Essential Steps to Evaluating Closed-End Funds
ByAinvest
Monday, Jan 26, 2026 9:36 am ET1min read
USA--
This article discusses the benefits of investing in closed-end funds (CEFs) with high yields and sustainable payouts. The author presents a three-step "buy test" for CEFs, focusing on portfolio quality, discounts to net asset value (NAV), and dividend payouts. The Liberty All-Star Equity Fund (USA) is used as an example, with an 11.4% yield and 14% annualized return over the last decade. The article highlights the importance of portfolio construction, discounts, and dividend payouts in making informed investment decisions.
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