Western Asset Inflation-Linked Opportunities & Income Fund

WIW

Market cap $545M

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

We review the CEF market valuation and performance through the first week of September and highlight recent market action. CEF market action was mixed, with most sector NAVs rallying but discounts widening. Nuveen adjusted distributions across its tax-exempt CEF suite, with unleveraged muni funds seeing hikes and leveraged funds facing cuts, reflecting a trend toward normalized payouts.

WIW offers an attractive 8.3% dividend yield, supported by its consistent monthly distributions. The fund's strategy focuses on inflation-protected securities, providing a defensive approach in uncertain economic environments. Current valuation metrics suggest WIW is reasonably priced relative to its historical averages and peer group.

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

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

Maybe you've heard some variation on this fear in the last few years:

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

Western Asset Infl-Linked Opps & Inc Fd is a leveraged closed-end fund focused on inflation-linked securities, offering current income amid rising inflation forecasts for 2025. The WIW closed-end fund boasts an 8.77% yield, monthly dividends, and a history of dividend growth, with 100% of recent distributions covered by net investment income. WIW trades at an 11.46% discount to NAV, near its 5-year average, providing an attractive entry point for investors seeking inflation protection.

I rate Western Asset Infl-Linked Opps & Inc Fd a Buy for income-focused investors seeking an 8.74% yield and monthly distributions, trading at an 11.5% discount to NAV. The fund's high investment-grade credit quality, 30% leverage, and low turnover enhance its income potential and risk-adjusted returns. Strong Q1 2025 performance, diversified inflation-linked and emerging market holdings, and expected Fed rate cuts provide further upside.

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