Eaton Vance Tax-Advantaged Dividend Income Fund

EVT

Market cap $1.85B

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.

Closed-end funds (CEFs) are the last bargains left on the board. CEFs are often confused with mutual funds and ETFs, but they are different because they often trade at discounts to their net asset values (NAVs).

Explore three tax-efficient, high-yield funds suitable for investors of all ages seeking income and lower tax implications in taxable accounts. DNP Select Income Fund offers stable, monthly dividends (7.8% yield) with a focus on essential utilities and a long history of capital preservation. Eaton Vance Tax-Advantaged Dividend Income Fund provides an 8.1% yield, equity exposure, and capital preservation, with most distributions as long-term capital gains.

The Eaton Vance Tax-Advantaged Dividend Income Fund offers a compelling value-oriented alternative to tech-heavy markets, with a strong allocation to financials and some fixed-income exposure for diversification. The fund's -8.29% discount remains attractive for long-term investors, with borrowing costs easing and further cuts expected. The distribution yield is healthy at 8.34%, supported by a balanced payout policy and tax-advantaged income through long-term capital gains and qualified dividends.

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.

With the month of July closing out, we are once again seeing the broader equity markets pushing to new all-time highs. As we enter into new all-time highs, we appear to be looking quite stretched on valuations, and CEF discounts have been narrowing.

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 Dividend Income Fund (EVT) pays a monthly distribution yielding 8.5%, trading at a -8.3% discount to NAV. Eaton Vance's conservative management, quality stock selection, and tax-advantaged dividends make EVT ideal for long-term, buy-and-hold retirement portfolios. EVT outperforms peer funds on total return, offers diversification beyond REITs, MLPs, BDCs, and bonds, and provides reliable, growing income.

Eaton Vance Tax-Advantaged Dividend Income Fund offers an attractive 8.4% yield, tax-advantaged income, and trades at a deeper-than-average 8% discount to NAV, enhancing its appeal. The EVT closed-end fund focuses on value-driven, dividend-paying stocks, with a heavy tilt toward Financials, and has outperformed its benchmark over the long term. Distribution coverage has improved, with no return of capital, and assets have grown, though dividend growth has been modest at 2.54% over five years.