5 Deeply Discounted CEFs Paying Up To 10.2%

Amid a pricey market with valuations often detached from fundamentals, dividend investors are seeking value opportunities. The focus shifts to Closed-End Funds (CEFs), which, due to their fixed share structure, frequently trade at discounts to their net asset value, allowing investors to acquire quality assets cheaply. Five specific CEFs are highlighted for their attractive yields and significant discounts. These include the Taiwan Fund (TWN), heavily invested in semiconductors with a 14% NAV discount; Calamos Global Dynamic Income Fund (CHW), a leveraged global allocation fund offering an 8%+ monthly dividend at a 9% discount; ClearBridge Energy Midstream Opportunity Fund (EMO), focusing on energy infrastructure with a 13% discount; BlackRock Muniyield Quality (MQY), a tax-exempt municipal bond fund with an 8% discount; and abrdn World Healthcare Fund (THW), a global healthcare fund yielding over 10% and trading at a rare 4% discount. This is one pricey market, and if you’re hesitant to put new money to work, I am sympathetic. After all, we’re here for the dividends. We want our principal to stay intact, so I understand it doesn’t make much sense buying high if we’re going to collect dividends but then watch the stock market proceed lower. Valuations seem to have decoupled from fundamentals in many cases.