7 High-Yield CEFs That Have Never Cut The Distribution In 10 Years Plus

Damon JuddInvesting GroupFollow5ShareSavePlay(14min)Comments(8)SummaryGuggenheim Strategic Opportunities Fund and six other CEFs have never cut distributions since inception, providing reliable monthly income for compounding portfolios.PIMCO funds PDI and PCN, along with utility-focused UTG and DNP, have weathered major market downturns while maintaining or increasing distributions.Healthcare CEFs THW and THQ offer double-digit yields and have preserved or raised distributions for at least a decade, supporting steady income streams.Reinvesting distributions in these long-term, high-yield CEFs can rapidly grow portfolio income, though investors must remain vigilant for potential distribution cuts.This idea was discussed in more depth with members of my private investing community, Inside the Income Factory. Learn More » Elena Kurkutova/iStock via Getty Images As a recent retiree, I enjoy receiving passive income from my investments each month. By reinvesting at least a portion of those monthly distributions into new shares, I can watch my income grow over time. This strategy is especially effective with securities that neverThis article was written byDamon Judd8.55K FollowersFollowNow retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Since that time I have done considerable research and vowed to make smarter long-term investing decisions after suffering through the Great Recession with minimal losses to my inherited portfolio, after firing my financial advisor.I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security. I also enjoy reading investment/financial and business information and following trends in technology and markets. The human psychology of markets is as fascinating and inscrutable to me as the financial side. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.” Damon RunyonAnalyst’s Disclosure: I/we have a beneficial long position in the shares of GOF, THW, PDI, UTG, DNP 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.