EOD: Distribution Growth Is Nice But Sector Allocation Might Not Be Ideal

Summary The Allspring Global Dividend Opportunity Fund offers a 9.31% yield by blending global dividend equities and junk bonds, with a U.S.-centric portfolio. EOD is overweight technology and underweight energy/materials versus the MSCI ACWI, potentially limiting upside as energy outperforms and interest rates rise. The fund’s distribution is variable, targeting a 9% yield on average NAV, and has been well covered by net investment income and realized gains. EOD currently trades at a 9.12% NAV discount, more attractive than its five-year average, and has outperformed the MSCI ACWI on a total return basis recently. Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More » Silver Place/iStock via Getty Images The Allspring Global Dividend Opportunity Fund ( EOD ) is a closed-end fund that invests in a combination of common equities and junk bonds issued by corporate entities that are located in both the United This article was written by Power Hedge 16.25K Followers Follow Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields. He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.