Author: Michael Foster, Contrarian Outlook

It’s a smart end-of-year buy, as its consistent and growing income stream is a great hedge against uncertainty in 2024.

It offers a big, sustainable income stream, exposure to stocks (or bonds, or real estate) and a diversified portfolio.

As I write, the fund trades at $9.40, but its assets are $11.86. Factoring its dividend yield, fees and discount, it has a negative ownership cost! This is not just a market inefficiency, it’s an illogical mispricing.

Imagine a fund yielding 16.2% that’s likely to keep that high payout steady for years and years. I know it sounds unthinkable, yet we have just such a fund sitting in front of us today — ripe for buying at a discount, no less.

At the end of the day, it comes down to these four key pillars: pricing, dividend sustainability, management and portfolio.