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The Incredible 11.2% Dividend Everyone Has Missed

By Michael Foster

Today IaEURtmm going to take you inside the most disrespected, criticized, lambasted and just plain ignored investments on the market today.

Why would I do that?

Simple. Because if youaEURtmre not as rich as youaEURtmd like to be, these unloved income plays are the perfect way to get you there.

IaEURtmm talking about closed-end funds (CEFs) , a group of investments that, with a bit of effort ( which IaEURtmm happy to put in for you ) can hand you big, fast upside, safe cash dividends of 8% and higheraEUR"or both.

So why do so many investors see CEFs as perennial money losers?

LetaEURtms take a look, using a pick every dividend fan should know about (but doesnaEURtmt) as an example: the Delaware Investments Dividend and Income Fund ( DDF ), a CEF with a massive 11.2% dividend yield and boasting a history of outperformance nearly everyone has missed.

Never heard of DDF? IaEURtmm not surprised. It has only $92.9 million in assets under management and a 2.1% expense ratio. Both of these set off alarm bells in most investorsaEURtm minds. Massive fees! A tiny fund!

Worse, if you compare DDFaEURtms return to that of the S&P 500, youaEURtmll see this:

A Complete Dud aEUR

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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