By George Spritzer:

This report covers several equity closed-end funds that seek to pay out a high level of qualified dividend income (QDI) to shareholders. Three of the recommended funds seek to own stocks with strong rising dividend levels that allow them to offer attractive yields and are currently available at attractive discounts to net asset value. These funds should benefit if the demand for dividend paying stocks continues in 2012.

I also discuss three equity income funds to avoid, primarily due to excessive valuation.

Three CEFs to Consider

1) Eaton Vance Tax Advantaged Dividend Income Fund (EVT)

  • Total Common Assets: 1.31 Billion
  • Expense ratio= 1.20%
  • Leverage: 25.43%
  • Discount= -10.18%
  • Annual Distribution Rate (market price) = 7.99%

Portfolio Overview

Domestic stock

50.6%

Foreign stock

18.0%

Preferred Stock

27.5%

Cash and Other

3.9%

Investment Strategy: EVT uses a multi-strategy approach toward maximizing dividend returns. Its base strategy is to own stocks with high stable


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