Key Details
Price
$20.22Last Dividend
$0.10Annual ROE
17.41%Beta
0.77Events Calendar
Next earnings date:
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Nov 15, 2024Next split:
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BlackRock Enhanced Capital and Income Fund offers investors an attractive discount, with the potential for some of that discount to be realized with tender offers. The CII fund's tech-heavy portfolio aligns with its benchmark, the Russell 1000 Index, but they also utilize a covered call strategy. The covered call strategy and strong underlying portfolio performance have led to attractive and stable monthly distributions for investors.
The BlackRock Enhanced Capital and Income Fund offers a 6.21% yield, higher than money market funds and U.S. Treasuries, making it attractive for income-focused investors. Despite recent underperformance, the fund's net asset value increased by 10.63% since the previous article, suggesting potential for a future distribution increase and share price appreciation. The fund's tech-heavy portfolio and covered call strategy balance income and capital appreciation, but investors should ensure proper diversification due to high-tech exposure.
BlackRock Enhanced Capital and Income Fund (CII) is a closed-end fund that utilizes a covered call strategy. CII has a rather concentrated portfolio, with top holdings in the tech giants, though it isn't unlike the broader market these days. The fund continues to trade at an attractive discount to its NAV, which makes it an appealing choice to consider.
BlackRock Enhanced Capital and Income Fund prioritizes reliable income with consistent distributions and capital appreciation. CII uses an option writing strategy on holdings to generate income, reduce volatility, and maintain a diverse portfolio across sectors. CII offers a high dividend yield of 6.1%, with steady growth in dividends since 2016, making it a strong long-term income investment option.
BlackRock Enhanced Capital and Income Fund Inc is a closed-end fund that primarily focuses on investing in U.S. listed company equities. Additionally, it engages in writing call and put options to generate income. Although the fund has a strong track record of performance over the long term, its yield may be slightly lower compared to other funds in the same category. Despite this, we consider it to be an appealing option for income investors who prioritize higher long-term growth potential over a slightly lower yield of around 6%.
BlackRock Enhanced Capital and Income Fund (CII) trades at an attractive discount relative to its long-term level and has strong performance thanks to its tech exposure. CII implements a covered call strategy, which can limit upside potential but brings in options premiums for higher distribution rates. The fund's distribution yield is 6.23% and, naturally, primarily relies on capital gains from its portfolio, which has not been a problem lately.
CII: Decent Income Fund But Don't Expect Much Growth Without Reinvesting Distributions
The Nasdaq and S&P 500 had recently entered correction territory and that volatility pushed some tech-oriented funds to some attractive discount levels where they remain. BlackRock Enhanced Capital and Income (CII) and Eaton Vance Tax-Managed Buy-Write Opportunities Fund (ETV) have put up solid results and provide monthly distributions to investors. CII and ETV both have an option writing strategy with tech-heavy portfolios.
BlackRock Enhanced Capital and Income Fund (CII) is a solid choice for long-term income investors, offering attractive returns and a steady monthly distribution. However, the fund's narrow discount and even recently trading at a premium to its net asset value should put investors in a more cautious approach. CII's tech-concentrated portfolio has contributed to its performance, and this has helped it pay out a solid monthly distribution to investors over the years.
The BlackRock Enhanced Capital and Income Fund offers a solution for generating additional income to offset rising inflation. The fund's yield is currently 6.41%, higher than the S&P 500 Index or U.S. Utilities Index. The fund's portfolio includes large positions in Microsoft, Alphabet, and Amazon, which may pose risks during a market correction.
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