EOD: This Fund Still Makes Sense For Income-Seeking Investors

Power HedgeInvesting Group LeaderFollow5ShareSavePlay(39min)CommentsSummaryThe Allspring Global Dividend Opportunity Fund (EOD) offers an 8.96% yield, blending global equities (80%) and high-yield bonds (20%) for robust income.EOD’s distribution coverage is strong, supported by capital gains, selective covered call writing, and leverage, with net asset value up 23.16% over two years.The fund’s quarterly, variable distributions have generally increased recently, aligning with its 9% NAV-based payout policy and supporting purchasing power preservation.EOD trades at an 8.01% NAV discount, near its historical average, and remains competitive versus peers despite a slightly lower yield than the median.Equities are likely to do a better job at preserving wealth than bonds going forward, and as such, this fund's large equity allocation looks attractive.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 » Getty Images The Allspring Global Dividend Opportunity Fund (EOD) is a closed-end fund that provides investors with a way to earn a very high level of current income while retaining their equity exposure. This could be a very attractiveThis article was written byPower Hedge16.07K FollowersFollowPower 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 a beneficial long position in the shares of LGI either through stock ownership, options, or other derivatives. 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.