Adams Natural Resources Fund

PEO

Market cap $568M

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.

Adams Natural Resources Fund offers diversified energy, materials, and mining exposure, trading at a 10.9% discount to NAV. PEO is concentrated in oil & gas, with major holdings in Exxon Mobil and Chevron, and benefits from secular energy demand trends. The fund provides an attractive 8% minimum distribution yield and is among the lowest-cost natural resources CEFs, despite recent underperformance versus peers.

For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight the ten best CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select 10 CEFs every month from around 500 closed-end funds.

For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.

BALTIMORE, July 18, 2025 (GLOBE NEWSWIRE) -- On July 17, 2025, Adams Natural Resources Fund, Inc. (NYSE: PEO) declared a distribution of $0.51 per share payable August 26, 2025 to shareholders of record on July 28, 2025. The distribution is optionally payable in additional shares of common stock (default) or in cash by specific stockholder election received before 4 p.m. (ET) on August 15, 2025, the valuation date. The issue price for shares will be the Fund's closing NYSE market price on the valuation date.

PEO offers a stable, covered distribution and low leverage, making it a reliable vehicle for extracting dividends from energy and materials equities. While a simple XLE/XLB ETF blend outperformed PEO, the fund's narrowing discount to NAV and structural stability support our revised rating. Retail investors seeking a one-stop-shop for inflation hedging may find PEO's 0.65% expense ratio justified, despite cheaper ETF alternatives.

BALTIMORE, July 17, 2025 (GLOBE NEWSWIRE) -- Adams Natural Resources Fund, Inc. (NYSE: PEO) announces the Fund's investment returns for the first half of 2025. The total return on the Fund's net asset value for the first half of 2025 was 2.3%, with dividends and capital gains reinvested. The comparable figures for the S&P Energy Sector and the S&P 500 Materials Sector were 0.8% and 6.0%, respectively. Our benchmark, which is comprised of the S&P 500 Energy Sector (80%) and the S&P 500 Materials Sector (20%), returned 1.8%. The total return on the Fund's market price for the same period was 3.1%.

For income investors, closed-end funds remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.

Traditionally, a large portion of equity returns has come from two factors - reinvested dividends and compounding. We present two income-focused approaches: a fund-based portfolio for hands-off investors and a stock-plus-ETF portfolio for active investors. Both strategies target a 6% income yield, capital preservation, and inflation-beating growth, but differ in maintenance ask and risk profiles.

For income investors, closed-end funds, or CEFs, remain an attractive investment class that covers various asset classes and promises high distributions and reasonable total returns. CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.