Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund

ETO

Market cap $479M

Eaton Vance's top taxable closed-end funds offer attractive yields, discounts to NAV, and strong long-term returns, making them appealing for income-focused investors. Current market volatility has widened discounts to NAV, creating buying opportunities which I highlight in the article. I prioritize funds trading at an 8%+ yield and significant NAV discounts, with a preference for those using tax-advantaged strategies and diversified asset mixes.

The Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund is a global equities CEF, leaning toward U.S. equities. ETO sports a strong 7.3% distribution yield. Capital gains are generally positive, and NAVs have grown since inception. It generally trades close to NAV, currently with a 8.0% discount to NAV. This seems like a good buying opportunity.

Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund remains a buy due to its attractive 9% discount to NAV and resilient income strategy. ETO offers a 7.4% monthly dividend yield, strong payout consistency, and exposure to high-quality global equities like MSFT, NVDA, and AAPL. While ETO underperforms traditional ETFs like SPY in long-term capital appreciation, it excels as a stable, income-focused fund for retirees and income investors.

For those who adopt a dividend strategy, having a “thermometer” with which to measure the real performance of our stocks is an immense advantage. This thermometer is NAV, a simple line on a graph that anyone can observe and understand without the need for calculations or interpretations. If it grows over the years, it means that the security earned its distributions: if it goes down, it means that it paid them at the expense of NAV.

I rate ETO a Buy for income-focused, long-term investors due to its 7.64% yield, monthly distributions, and global diversification. The fund trades at a -7.53% discount to NAV, offers tax-advantaged dividends, and has a strong 10-year total return of 165%. ETO outperforms peer funds on total return, but investors should consider stock market risk and leverage before investing.

Caring about dividends can increase our returns, but caring about NAV can save our portfolio. Return and NAV protection must go hand in hand, because there can be no sustainable return without protecting the value of the underlying assets. As far as I am concerned, the way to protect my portfolio is to favor only securities with a positive NAV over time.

Eaton Vance's top taxable closed-end funds offer reliable monthly income, strong long-term returns, and are managed by highly skilled teams with proven track records. I prioritize funds trading at a discount to NAV with distribution yields near or above 8%, focusing on both income and capital appreciation potential. For total return, EOS and EOI are top picks; for dividend income, EVT (domestic) and ETG (global) provide diversification and attractive yields.

BOSTON--(BUSINESS WIRE)--The Eaton Vance closed-end funds listed below released today the estimated sources of their June distributions (each a “Fund”). This press release is issued as required by the Funds' managed distribution plan (Plan) and an exemptive order received from the U.S. Securities and Exchange Commission. The Board of Trustees has approved the implementation of the Plan to make monthly, as noted below, cash distributions to common shareholders, stated in terms of a fixed amount.

Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund offers a high 7.82% yield from a globally diversified, equity-heavy portfolio, with tax-advantaged distributions that help if using a taxable account. The ETO closed-end fund is currently favoring foreign equities, which have outperformed U.S. stocks year-to-date, and benefits from a weak U.S. dollar environment. Equities are probably a better holding than bonds right now, given the market's increasing reluctance to finance developed-market nations.

I'm just going to come out and say it: If you want to be financially independent (and who doesn't?), you must own closed-end funds (CEFs).