BlackRock Enhanced Equity Dividend Trust

BlackRock Enhanced Equity Dividend Trust operates as a closed-end investment fund and investment trust. Its primary investment objective is to seek current income and current gains, with a secondary objective of long-term capital appreciation. The company was founded on August 31, 2005 and is headquartered in Wilmington, DE.

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NEW YORK--(BUSINESS WIRE)---- $BBN--Today, BlackRock Resources & Commodities Strategy Trust (NYSE: BCX), BlackRock Enhanced Equity Dividend Trust (NYSE: BDJ), BlackRock Energy and Resources Trust (NYSE: BGR), BlackRock Enhanced International Dividend Trust (NYSE: BGY), BlackRock Health Sciences Trust (NYSE: BME), BlackRock Health Sciences Term Trust (NYSE: BMEZ), BlackRock Enhanced Global Dividend Trust (NYSE: BOE), BlackRock Utilities, Infrastructure & Power Opportunities Trust (NYSE: BUI), Bla.

Certain BlackRock Closed-End Funds Announce Estimated Sources of Distributions

BlackRock Enhanced Equity Dividend Fund (BDJ) is trading at a historically attractive discount level, making it a candidate for a potential investment. BDJ utilizes a covered call strategy and benchmarks the Russell 1000 Value Index and MSCI USA Value Call Overwrite Index. The fund's distribution yield is 8.41%, and its monthly distribution has remained reliable and steady (seeing a couple of increases) for over a decade.

BDJ: Discount Staying Wide, Staying Attractive

BlackRock Enhanced Equity Dividend Fund uses option writing to enhance distributions and seeks dividend growth. BDJ currently sells at a 10% discount. BDJ has shown poor total returns compared to other equity funds and growth-oriented equity funds. Three other funds are used to illustrate that point. While BDJ provided enhanced income compared to many equity funds, its poor total return compared to those same funds and growth-oriented equity funds earn it a Sell rating.

BDJ: Enhanced Income Comes At A Cost

BlackRock Enhanced Equity Dividend Fund offers a high yield of 8.36% and invests primarily in common equities, providing income-focused investors with upside potential. Compared to other covered call and enhanced equity funds, the BlackRock Enhanced Equity Dividend Trust has a higher yield and less aggressive option strategy. The fund's performance has trailed the S&P 500 Index, but its distribution track record and consistent income make it an attractive choice for investors seeking a high level of current income.

BDJ: Good Covered Call Fund For Those Looking To Own A Portfolio Of Dividend Stocks

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Schwab US Dividend Equity ETF

Creating a "lazy" dividend portfolio with just a few picks is not recommended, as it lacks diversification and exposes the portfolio to significant risk. Funds that provide stable dividends may not always deliver consistent returns, as the underlying assets and market conditions can change. The top-performing stocks in the market tend to change over time - difficult to predict which stocks will continue to outperform in the future. Diversification is key to managing risk.

Warning: Don't Be Lazy With Your Retirement Portfolio

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Calamos Convertible Opportunities And Income Fund

DNP Select Income Fund Inc

Eaton Vance Enhanced Equity Income Fund II

Energy Transfer LP Unit

Flaherty & Crumrine Preferred Securities Income Fund Inc

Guggenheim Strategic Opportunities Fund

Tekla Healthcare Investors

New American High Income Fund

India Fund Inc

Kayne Anderson MLP Investment

Main Street Capital

Barings Corporate Investors

Annaly Capital

Nuveen Municipal High Income Opportunity Fund

PIMCO Dynamic Income Fund

John Hancock Premium Dividend Fund

Cohen And Steers Total Return Realty Fund

Cohen & Steers Reit And Preferred Income Fund Inc

2023 year-end review of our 8% Income Portfolio. This high-income portfolio earned over $29,000 in distributions amounting to over 14% yield-on-cost basis and roughly 8.6% on average portfolio value. We will provide updates on trades during the year, dividends collected, and overall performance. As usual, we will compare the performance with a traditional 60:40 stock/bond portfolio.

The 8% Income Portfolio: 2023 Year-End Review

Aberdeen Standard Global Infr Inc Fd

Eaton Vance Tax-Advantaged Global Dividend Income Fund

John Hancock Tax-Advantaged Dividend Income Fund

NXG NextGen Infrastructure Income Fund

Western Asset Investment Grade Income Fund

PIMCO Dynamic Income Opportunities Fund

Cohen & Steers Tax-Adv Pref Secs and Inc Fund

Cohen & Steers Real Estate Opportunities and Income Fund

Cohen & Steers Quality Income Realty Fund

Reaves Utility Income Fund

I have a total of 41 positions in my closed-end fund portfolio, with the top ten positions making up 36.52% of the portfolio. We have four new names making their way to my top ten list since the prior update, but three were already positions that have simply grown to be larger allocations. Closed-end funds overall look to be a place of opportunity as discounts remain historically wide across both equity and fixed-income-focused funds.

My Top 10 Closed-End Fund Holdings: December 2023

BlackRock Enhanced Equity Dividend Fund has seen a sharp recovery from the October lows as the fund's discount tightened back up. That said, the fund's discount is still attractive relative to its historical level and could still be considered an attractive opportunity for a long-term investor. BDJ focuses on dividend-paying stocks and utilizes a covered call strategy, providing potential for capital gains to fund its distribution even in a flat or slightly down market.

BDJ: Value-Oriented Portfolio With Attractive Discount And Distribution Yield

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Morgan Stanley China A Share Fund Inc

Blackrock Debt Strategies Fund Inc

Eaton Vance Municipal Income 2028 Term Trust

First Trust Mortgage Income Fund

Blackrock Floating Rate Income Strategies Fund Inc

Templeton Global Income Fund

Western Asset High Income Fund

Western Asset High Yield Defined Opportunity Fund Inc

Western Asset Investment Grade Defined Opportunity Trust

Nuveen Mortgage Opportunity Term Fund

Deutsche Municipal Income Trust

Morgan Stanley Emerging Markets Debt Fund

Nuveen Municipal Credit Opportunities Fund

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

PIMCO Access Income Fund

Putnam High Income Securities Fund

PIMCO Income Strategy Fund II

Templeton Emerging Markets Income Fund

Stocks were up slightly as the jobs report shifted the narrative towards 'higher for longer.' The payroll report came in stronger than expected, but the narrative was that it was a hawkish report, meaning higher rates for longer. Discounts for CEFs continue to tread water, with real estate and interest rate-sensitive bond sectors performing well, while emerging market equity and convertibles performed poorly.

CEF Weekly Commentary | December 10, 2023 | High Quality Opportunities

ArrowMark Financial

Calamos Strategic Total Return Fund

Morgan Stanley India Investment Fund Inc

Barings Participation Investors

Neuberger Berman MLP Income Fund, Inc.

LMP Capital and Income Fund

Tekla World Healthcare Fund

For income investors, closed-end funds remain an attractive investment class that covers a variety of asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.

5 Best CEFs This Month For 10% Yield (November 2023)

BlackRock Enhanced Equity Dividend Fund offers a current distribution yield of 8.94%, higher than the S&P 500 Index's 1.44% yield. BDJ's recent performance has been disappointing, with a decline in share price since June 2023. The fund focuses on dividend-paying equities and employs a covered call strategy to enhance distributions, making it appealing to income-focused investors.

BDJ: A Relatively Safe Way To Earn Income And Still Invest In Equities

Virtus AllianzGI Diversified Income & Convertible Fund

Eagle Point Credit

Eaton Vance Tax-Advantaged Dividend Income Fund

For income investors, closed-end funds remain an attractive investment class that covers a variety of asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records, pay high distributions, and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.

5 Best CEFs This Month For 10% Yield (October 2023)

Nuveen AMT-Free Municipal Value Fund

SPDR S&P 500 ETF Trust

SPDR S&P Biotech ETF

Health Care Select Sector SPDR Fund

September was the worst month for equities in 2023, but that's simply creating buying opportunities for the long-term investor. I added to four different positions in my CEF portfolio this month, though they are all familiar names that I've already owned. The theme this month was once again avoiding taking on leveraged funds, and none of the four funds take on any leverage in the form of borrowings.

4 Closed-End Fund Buys In The Month Of September 2023

Liberty All Star Equity Fund

5 Best CEFs This Month For 9% Yield (September 2023)

BlackRock Enhanced Equity Dividend Trust is a covered call-writing fund, which has now dropped to an attractive discount. BDJ has a simple approach, a low expense ratio, and a value-oriented portfolio. The fund has a steady and reasonable distribution rate, backed by the underlying dividend payers and capital gain potential.

BDJ: Deep Discount Creating A Long-Term Opportunity

BlackRock Enhanced Equity Dividend Fund is trading at a more attractive discount due to its portfolio outperforming market price results, presenting a potential opportunity for investors. The fund provides exposure to the value-oriented sectors rather than a tech-heavy weighting; it helped provide downside protection last year. The fund's lack of leverage and covered call strategy can help reduce volatility, which also means no worrying about rising borrowing costs for this fund as interest rates climb.

BDJ: Discount Widens For This Attractive Covered Call Fund

The stock market has largely recovered from a rough 2022, driven by the "Magnificent Seven" tech stocks that have boosted the Nasdaq and S&P 500 averages. The CNN Fear and Greed Index currently reads 80, indicating "Extreme Greed", and there are concerns about market breadth if the "Magnificent Seven" are removed from the S&P 500. BDJ, a closed-end fund that partially hedges its portfolio, is suggested as a good way to hedge against a down market while providing global equity exposure.

BDJ: A Solid 8% Yielding Covered Call CEF With A Reasonable Expense Ratio

The BlackRock Enhanced Equity Dividend Trust has underperformed the S&P 500 since we last covered it in September 2022, delivering -3.4% in total return compared to the S&P 500's 7.0% total returns. BDJ's recent performance lags peers, including the Global X S&P 500 Covered Call ETF and the JPMorgan Equity Premium Income ETF. BDJ's underperformance vs. call-write peers is due to the fund's sector allocation, which can tilt significantly away from market weights. This can lead to periods of over/underperformance.

BDJ: Lagging Call-Write Peers Due To Mismatched Sector Exposures

Investors today are desperately in need of income due to the rapidly rising cost of living in both the United States and many other nations. BDJ invests in a portfolio of high-yielding dividend stocks and then writes call options against individual stocks to synthetically boost their yields. The fund enjoys much less volatility than the market on average, which could be appealing to those investors concerned with principal protection.

BDJ: High Distribution Yield And Less Volatility Than Most Funds

BDJ has been a long-term position in my closed-end fund portfolio. The fund is attractive and delivers dependable monthly distributions.

BDJ: An Attractive Covered Call Fund, But Valuation Gives Pause

BDJ invests in dividend-paying common stocks and employs a covered call strategy to earn income for its investors. The fund managed to beat the S&P 500 Index over the past twelve months and still paid out a higher yield.

BDJ: This Covered Call And Dividend Income Fund Is Solid, Just Watch The Price

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Alpine Global Dynamic Dividend Fund

Calamos Convertible And High Income Fund

Delaware Investments Dividend and Income Fund

Delaware Enhanced Global Dividend & Income Fund

Stone Harbor Emerging Markets Total Income Fund

Eaton Vance Tax-Managed Buy-Write Opportunities Fund

Eaton Vance Tax-Advantaged Bond & Opportunity Stategies Fund

First Trust / Aberdeen Emerging Opportunity Fund

Gabelli Convertible and Income Securities Fund

Gabelli Multimedia Trust

Eagle Capital Growth Fund Inc

Ivy High Income Opportunities Fund

Macquarie Global Infrastructure Total Return Fund Inc

BlackRock MuniHoldings Fund

BlackRock MuniAssets Fund

Nuveen Municipal Income Fund Inc

Invesco Municipal Income Opportunities Trust

Pimco California Municipal Income Fund II

Pimco California Municipal Income Fund

Pimco Municipal Income Fund

Pimco Municipal Income Fund II

Pimco Municipal Income Fund III

3 out of 23 CEF sectors positive on price and 6 out of 23 sectors positive on NAV last week. PIMCO muni CEFs cut.

Weekly Closed-End Fund Roundup: PIMCO Muni CEF Distribution Cuts (January 1, 2023)

BDJ has been holding up meaningfully better than the broader market due to a covered call and value-tilted strategy. Unfortunately, other investors have seemed to notice and pushed the fund's discount to trade near parity with the NAV for months.

BDJ: Attractive Strategy For Current Environment

Closed-ended funds are losing popularity amid the rise of thematic and style-based ETFs. However, BlackRock's Enhanced Equity Dividend Fund looks like a winner. We believe the fund's allocation is favorable in today's market, with large-cap, value, low-volatility, and high-dividend assets being favored among risk-off investors.

BDJ: Giving It The Benefit Of The Doubt

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The volatility had continued since earlier this year when we last looked at my top ten CEFs. With closed-end fund discounts widening, there seem to be more opportunities in the space overall.

My Top 10 Closed-End Fund Holdings: October 2022

News for BlackRock Enhanced Equity Dividend Trust ETF (BDJ)