Let me start today’s article with an admission: Closed-end funds (CEFs) are my passion—but not only for their 8%+ dividends (often paid monthly).
But I’ll also admit that I’ve flirted with other big-yielding options, and they all came up short. Take exchange-traded notes (ETNs), which came and went years ago. I quickly dipped into these only to get out just as fast.
I also tried master limited partnerships (MLPs), then quickly discovered the tax-filing nightmare involved with them. (MLPs issue a K-1 package to report your income, which is a headache compared to the 1099 form you get from stocks).
That leads me to another high-yielding asset class (besides CEFs) that I continue to flirt with: business development companies, or BDCs.
This post appeared at Dividend Stocks Research.