Adams Diversified Equity Fund

ADX

Market cap $2.91B

Adams Diversified Equity Fund (NYSE:ADX) has distributed income to shareholders since 1929, making it one of the oldest closed-end funds in the United States.

Adams Diversified Equity Fund boasts nearly 100 years of outperformance, surpassing SPY in total returns over comparable periods. ADX avoids the typical NAV decay of closed-end funds, with its NAV climbing 190.8% since the 1990s and total returns exceeding 2980%. The fund's managed distribution policy pays a sustainable 8% of NAV annually, aligning payouts with fund performance and avoiding over-distribution risks.

This 7-fund, all-funds portfolio targets a ~8% income yield and market-matching growth with passive, diversified exposure across equities, bonds, energy, utilities, and real estate. The portfolio has delivered a trailing 12-month yield on cost of 9.42% and an annualized return (CAGR) of 14.67%, outperforming the S&P500 with 20% lower volatility. This strategy is designed for retirees seeking high, consistent income and reduced volatility without sacrificing long-term growth potential.

Adams Diversified Equity Fund offers an 8% yield and direct exposure to high-quality equities, making it attractive for retirees seeking income and growth. ADX mirrors the S&P 500 but skews toward technology, with top holdings like NVDA, AAPL, MSFT, and GOOG, and avoids leverage or complex strategies. I am upgrading ADX to a buy, citing its strong long-term performance, self-correcting 2% NAV-based quarterly distributions, and potential for tax-efficient income.

Adams Diversified Equity Fund (NYSE:ADX) has been paying dividends since 1929, making it one of the oldest closed-end funds in the country.

The Iran conflict has, of course, sent oil prices spiking. And the tensions in the region are unlikely to end soon.

Adams Diversified Equity Fund currently trades at a ~3.8% discount to NAV, far below its historical double-digit discounts. ADX's ~8% managed distribution is now heavily reliant on return of capital (ROC), with 78% of Q1 2026's payout sourced from ROC. The fund's discount advantage has eroded, reducing its appeal for new buyers and offering no offset to lagging price performance.

BALTIMORE, Feb. 12, 2026 (GLOBE NEWSWIRE) -- The Boards of Directors of Adams Diversified Equity Fund (NYSE: ADX) and Adams Natural Resources Fund (NYSE: PEO), two of the nation's oldest closed-end funds, announce the election of Steven G. Chambers as an independent director of the Funds, effective February 12, 2026.

My income portfolio prioritizes resilient, high-dividend securities with long-term positive NAV trends rather than trading based on unpredictable short-term price movements. Therefore, I focus on funds that have demonstrated value creation since launch, especially those with at least a decade of performance history, with its accompanying ups and downs. In this article, I show how the NAVs of all my securities behaved during the worst moments of their existence and how they largely rebounded.

Many retirees invest in high-yielding funds where the income looks irresistible, but the risk is hiding in plain sight. One overlooked factor can quietly destroy long-term retirement income. There is a far more reliable way most retirees completely ignore.