3 Ultra-High-Yield Funds That Are Passive Income Money Machines | Smart Change: Personal Finance

Let your money work for you. That’s the idea behind passive income. There are multiple ways to put your money to work, but some offer greater income than others do.

Closed-end funds (CEFs) stand out as a great alternative for investors to consider. They are mutual funds that can be traded on a stock exchange similar to an exchange-traded fund (ETF). And CEFs often provide exceptionally attractive yields. Here are three high-yield funds that are passive income money machines.

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1. Aberdeen Global Dynamic Dividend Fund

Aberdeen Global Dynamic Dividend Fund (NYSE: AGD) primarily seeks to provide high dividend income. The fund’s secondary investment objective is to generate long-term capital growth. The CEF’s net assets totaled $139.7 million as of July 31, 2022.

With these two goals in mind, the fund’s top holdings make a lot of sense. Those largest positions include dividend stocks that also have solid growth prospects, including Apple, Microsoft, and AbbVie.

The CEF currently offers an ultra-high dividend yield of close to 7.8%. Its net expense ratio stands at 1.18%. Aberdeen Global Dynamic Dividend Fund trades at a 10.1% discount to its net asset value (NAV).

2. AllianceBernstein Global High Income Fund

AllianceBernstein Global High Income Fund (NYSE: AWF) is another CEF that primarily attempts to provide high levels of income with a secondary objective of capital appreciation. This fund adjusts its portfolio risk level based on how markets are performing,…

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