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This Unloved Strategy Could Unlock 7%+ Dividends And 22%+ Gains In 2023

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There’s a quiet shift happening in closed-end funds (CEFs)—and it’s primed to give those who buy now some very nice upside in 2023.

And that’s in addition to the rich 7%+ dividends CEFs hand us.

That trend is a shift toward share buybacks, which you likely know about from the stock world. Buybacks work similarly with CEFs, but with an extra punch: they keep CEFs’ discounts to net asset value (NAV) from getting too wide—and they can even narrow those discounts, slingshotting the share price higher as they do.

In other words, by helping close CEFs’ discounts, managers have some control over the fund’s market price in a pullback, and they can amplify its gains when the market turns higher.

The buy-rated equity funds held by our CEF Insider service will be among the biggest beneficiaries of this new buyback spree, particularly those managed by BlackRock, the world’s biggest investment firm, as we’ll see shortly.

BlackRock’s Aggressive Buyback Move a Positive Sign for ’23

As I write this, BlackRock is leading the way on the buyback front, snapping up over $100 million worth of shares across 15 of its CEFs in the last quarter of 2022.

When a…

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