SCD: Unique CEF Could Be Well-Positioned To Outperform In The Current Environment

Power HedgeInvesting Group LeaderFollow5ShareSaveCommentsSummaryLMP Capital & Income Fund (SCD) offers a 9.63% yield, higher than broad equity indices and most peers, with a sustainable distribution profile.SCD's overweight energy allocation (14.05%) positions it for potential outperformance amid elevated oil prices and ongoing geopolitical tensions.The fund's NAV per share has risen 12.49% over three years, indicating strong distribution coverage and prudent management.SCD trades at an 8.14% discount to NAV, slightly above its long-term average, but remains attractively valued relative to intrinsic worth.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 » halbergman/iStock via Getty Images The LMP Capital & Income Fund (SCD) is a closed-end fund that income-seeking investors might find to be very attractive today. One reason for this is that the fund invests in a portfolio of equity securities but still manages toThis article was written byPower Hedge16.1K 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 no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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. I am long various energy-focused funds that may include any of the companies mentioned in this article. I exercise no control over these funds and they may change positions at any time without my knowledge.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.