Three Top Corporate Bond Funds Offer Yields Above 9%
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Corporate bonds are booming due to high demand and record fund inflows. Yields have surged with the Fed rate hikes.
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Three corporate bond CEFs - PTY, DHY, and EVV - offer 9%+ dividend yields that are well covered due to low default rates.
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PTY has outperformed in the past decade with its aggressive trading strategy. DHY and EVV take less risk but benefit more now from higher yields.
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DHY and EVV trade at discounts, making their high yields more sustainable. Their portfolios could gain if rates fall.
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Buying DHY and EVV now, before other investors bid up their prices, provides income potential and possible future capital gains.