Eaton Vance Tax-Managed Diversified Equity Income Fund

ETY

Market cap $2.43B

Eaton Vance Tax-Managed Diversified Equity Income offers a strong blend of income and growth, with a 7.5% yield and long-term returns matching the S&P 500. The fund uses a covered call strategy on large-cap, growth-oriented stocks, limiting upside but reducing volatility and drawdowns. ETY has a solid record of nearly 19 years, providing its owners with high income and reasonable capital appreciation at the same time.

I rate ETY a Hold for income-focused, long-term investors due to its 2.57% premium to NAV and strong historical returns. ETY offers a 7.45% yield through monthly distributions, primarily from US stocks and S&P 500 call option premiums, with no leverage or fixed income exposure. The fund's consistent income, solid 10-year total return, and risk management make it attractive, but current valuation limits new buying opportunities.

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.

ETY offers a diversified, tax-managed equity income strategy with a robust 7.69% yield, primarily from equity and option income performance. The fund is overweight in the tech and consumer sectors, with significant AI exposure, positioning it for continued growth as AI adoption expands. ETY's performance has recently outpaced peers and the S&P 500 in the short term, but long-term returns lag behind lower-fee ETFs like SPY on a total return basis.

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-Managed Diversified Equity Income Fund (ETY) offers high monthly income through an option strategy, with a current dividend yield of 8.9%. ETY's portfolio is heavily weighted in Technology, Communication Services, and Financials, with top holdings in Microsoft, Apple, and NVIDIA. The fund trades at a slight discount to NAV, and its conservative dividend payouts have preserved investor capital despite market volatility.

BOSTON--(BUSINESS WIRE)--The Eaton Vance closed-end funds listed below released today the estimated sources of their February 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 amo.

Eaton Vance Tax-Managed Diversified Equity Income Fund has outperformed the S&P 500 Index since our last update, driven by a narrowing discount and strong underlying portfolio performance. ETY employs an S&P 500 Index-esque portfolio with a call-writing strategy, overwriting around 50% of the portfolio to potentially generate current cash flow for the monthly distribution. Despite solid long-term performance, ETY is rated as a 'Hold' due to its valuation, with the discount to NAV narrowing significantly.

BOSTON--(BUSINESS WIRE)--The following Eaton Vance closed-end funds (the “Funds”) announced distributions today as detailed below. Declaration – 2/3/2025 Ex-Date – 2/13/2025 Record – 2/13/2025 Payable – 2/24/2025 Municipal Bond Funds:   Fund Ticker Distribution Change From Prior Distribution Closing Market Price – 1/31/25 Distribution Rate at Market Price Eaton Vance California Municipal Income Trust CEV $0.0500 - $10.14 5.92% Eaton Vance Municipal Income Trust EVN $0.0513 - $10.31 5.97% Taxabl.

The Eaton Vance Tax-Managed Diversified Equity Income is a closed-end fund that primarily invests in large capitalized high-growth equity holdings. It also utilizes call overlay on nearly 60% of its portfolio. ETY offers an attractive 7.8% distribution yield and is currently trading at a small discount of roughly 1%. It is a reasonably good bet on getting consistent high income and still nearly matching the total returns of the S&P500 over the long term.