My High-Yield, Zero-Leverage, Low-Cost Diversified Secret Fund

The purpose of this article is to highlight an income closed end fund that could offer an investor's portfolio solid income, a high yield, an efficient expense ratio, and diversification (against a bond heavy portfolio or a basket of bond heavy closed end funds). Highlighted on Morningstar's website, AllianzGI NFJ Dividend Interest & Premium Common Fund (NFJ) seeks current income with long term capital appreciation through investment in dividend paying common stocks, income producing convertible securities, and through utilizing a covered call and options strategy.

Owning NFJ is very advantageous for all the reasons mentioned above, however, do not weight too much of your portfolio on NFJ. Let NFJ serve as an income diversifier in your portfolio from drastic market swings and don't forget to own higher yielding closed end funds for yield type diversification (balance of Bonds and Equities) and higher upside from a yield perspective. I would recommend pairing NFJ with NCZ (and potentially NCV, if the price drops to reflect its fair market price) for efficient yield utilization.

Source: Seeking Alpha

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