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Passive Income from Closed-end Funds


woody closed-end funds

Consider my time away from the PI-Quest a writing hiatus. I’ve still been on the quest but I haven’t made much time for writing. I don’t intend to write at the frequency I did when I started but since there are still visitors to the site pretty much every day. I should probably give the occasional update and my thoughts on the subject; closed-end funds will be the topic for today.

Many of the things that people write about for making passive income don’t work or require a certain amount of specialized skill that isn’t optimal for people who aren’t used to it already. What’s been working the best and most consistently for me has been investing.

My favorite products that have been making me the most money have been closed-end funds (CEFs) which payout a monthly dividend.

Without going into too much detail right now, I’ve been investing in a couple of PIMCO CEFs (PTY and PDO), and Cornerstone Strategic Value (CLM). The PIMCO funds pay around 7% and CLM currently pays around 14%.

Fund – Shares – Monthly Div – Monthly PI
CLM – 300 – $0.16 – $48
PTY – 400 – $0.13 – $52
PDO – 100 – $0.12 – $12

These CEFs have also been rising in value so it’s monthly dividends plus the percentage increase in value. They’re actually doing pretty well as investments. PDO in particular is pretty new and has increased about 2% in the week that I’ve owned it.

My holdings for these three closed-end funds alone amount to $1,344 per year in passive income. I didn’t buy them all at once. Instead, I have been buying them a bit at a time over the past couple of years.

Anyway, if anyone has questions about passive income or just finance questions in general, feel free to leave feedback. Your question could be the subject of a future post.

Cheers and good luck with your quest.

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Tags: CEF, closed-end funds, income

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