CET: Good For Capital Growth, But May Not Be Attractive For Income

Central Securities Corporation is a closed-end fund with a long-term record of outperforming the S&P 500, driven by a concentrated, value-oriented equity portfolio. CET avoids heavy technology exposure, instead focusing on financials—particularly insurance underwriters like Plymouth Rock, which accounts for 22.2% of assets and over 50% of income. The fund pays a variable, semi-annual distribution yielding 5.07%, fully covered by investment income and capital gains, but lacks monthly payouts favored by income investors. CET trades at a 15.92% discount to NAV, with a low 0.41% expense ratio, making it attractive for long-term capital growth and portfolio diversification.

Central Securities Corporation ( CET ) is a closed-end fund that aims to grow its investors' capital over time. Historically, it has done a very good job of providing its investors with growth of capital, as this is one of