LMP Capital and Income Fund

SCD

Market cap $368M

The article presents a rigorously screened list of 10 top closed-end funds, or CEFs, for income investors, offering an average 9.7% yield and -10% NAV discount. Selections emphasize sector diversification, long-term outperformance, sustainable distributions, and attractive valuations, with a focus on both equity and credit-oriented CEFs. CEFs are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone.

The LMP Capital and Income Fund (SCD) offers a 9.34% yield, surpassing major equity and bond indices, with a focus on high-dividend equities and limited bond exposure. SCD's portfolio is 88.2% common stocks and 14.6% convertible preferreds, providing inflation resilience and capital appreciation potential versus traditional fixed income. Despite underperforming major indices recently, SCD outperformed over five years, aided by energy MLPs and midstream equities with superior yields and tax advantages.

The Fund's estimated sources of the distribution to be paid on December 31, 2025, and for the fiscal year 2025 year-to-date are as follows.

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

This month's top 10 closed-end funds (CEFs) offer an average yield of 9.5% and strong long-term performance across diverse asset classes. 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.

LMP Capital and Income Fund offers a 9.7% yield, focusing on income generation through a diversified asset mix, but has underperformed recently. SCD trades at an 8.68% discount to NAV, yet remains near the higher end of its historical price-to-NAV range, making accumulation less attractive. Earnings are inconsistent, with recent net investment income declines and reliance on realized gains, impacting NAV growth and dividend sustainability.

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

This month's top 10 closed-end funds offer an average yield of 9.25% and strong long-term performance across diverse asset classes. 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.

NEW YORK--(BUSINESS WIRE)--Category: Distribution Related.

We've got a frankly, bizarre dynamic setting up in stocks right now.