This 17.9%-Yielding Fund Has Maintained Its Payment for Over a Decade. Can That Streak Continue in 2025?

The 17.9% yield of the Guggenheim Strategic Opportunities Fund (NYSE: GOF) is enticing, and as you will see shortly, this fund has an excellent record of distributions to investors. Still, the key questions are: Is it sustainable? Here's the lowdown.It's a closed-end fund, so it doesn't raise new capital from investors. Like many other closed-end funds, it uses debt and leverage to generate higher returns.Digging into the fund's prospectus, strategy, and holdings, it says it aims to "maximize total return through a combination of current income and capital appreciation" by "investing in a wide range of fixed income and other debt and senior equity securities." Continue reading

Apr 7, 2025 - 11:03
 0
This 17.9%-Yielding Fund Has Maintained Its Payment for Over a Decade. Can That Streak Continue in 2025?

The 17.9% yield of the Guggenheim Strategic Opportunities Fund (NYSE: GOF) is enticing, and as you will see shortly, this fund has an excellent record of distributions to investors. Still, the key questions are: Is it sustainable? Here's the lowdown.

It's a closed-end fund, so it doesn't raise new capital from investors. Like many other closed-end funds, it uses debt and leverage to generate higher returns.

Digging into the fund's prospectus, strategy, and holdings, it says it aims to "maximize total return through a combination of current income and capital appreciation" by "investing in a wide range of fixed income and other debt and senior equity securities."

Continue reading