ETY: Discount Widening Presents Opportunity For This Monthly Payer

Eaton Vance Tax-Managed Diversified Equity Income Fund now trades at an 8.3% discount, presenting a compelling entry point. ETY's lagging returns stem from both a widened discount and active management choices that diverge from the S&P 500 composition. Despite underperformance, ETY's 8.35% yield and tax-friendly distributions remain attractive for income-focused investors. I rate ETY a cautious 'buy' due to valuation but recommend dollar-cost averaging given stretched equity markets.

This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More » Lemon_tm/iStock via Getty Images Written by Nick Ackerman, co-produced by Stanford Chemist Since our last update , the Eaton Vance Tax-Managed Diversified Equity Income Fund ( ETY ) has been under pressure. It has delivered about flat total returns, while the S&P 500 Index is up nearly This article was written by Nick Ackerman 16.24K Followers Follow Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.