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This Surging 8.2% Dividend Proves The Economy Is Fine

The author argues the U.S. economy is stable and growing, citing Fed data showing retail spending up ~3.1% year-over-year and broadly similar spending trends across income groups. He recommends investors favor stocks — specifically a high-yield closed-end fund, Eaton Vance Tax‑Managed Diversified Equity Income Fund (ETY) — which yields 8.2% and has raised its dividend 23% over three years. ETY holds large S&P 500 names (NVIDIA, Apple, Amazon, Coca‑Cola) and currently trades at a meaningful discount to NAV (roughly 6%), vs. a decade average discount of 1.9%; reversion could imply ~4% price upside plus the 8.2% yield. The piece is bullish on equities, framing ETY’s high yield and discount as an attractive way to capture income and potential capital gains while broader macro worries persist.

Category

US 500

Sentiment

Bullish

Event

Market commentary

Reading time

1 min