XAI Madison Equity Premium Income Fund has seen a name change along with a change in the adviser, though the fund's objective and investment policy remained unchanged. The fund continues to carry a significant cash-like position that we've seen since around 2019, with risk-free rates dropping, this cash position may make less sense going forward. Despite the latest underlying weakness in the portfolio caused by overall increased market volatility and declines, MCN still doesn't appear like a bargain.
MADISON, Wis., Sept. 03, 2024 (GLOBE NEWSWIRE) -- The Madison Covered Call and Equity Strategy Fund (NYSE:MCN) (the “Fund”) declares its quarterly dividend of $0.18/share. The dividends will be payable September 30, 2024, to shareholders of record on September 17, 2024. The ex-dividend date will be September 17, 2024. If it is determined that a notification is required pursuant to Section 19(a) of the Investment Company Act of 1940, as amended, such notice will be posted to the Fund's website after the close of business three business days before the payable date. If a distribution rate is largely comprised of sources other than income, it may not reflect Fund performance.
MADISON, Wis., June 03, 2024 (GLOBE NEWSWIRE) -- The Madison Covered Call and Equity Strategy Fund (NYSE:MCN) (the “Fund”) declares its quarterly dividend of $0.18/share. The dividends will be payable June 28, 2024, to shareholders of record on June 14, 2024. The ex-dividend date will be June 14, 2024. If it is determined that a notification is required pursuant to Section 19(a) of the Investment Company Act of 1940, as amended, such notice will be posted to the Fund's website after the close of business three business days before the payable date. If a distribution rate is largely comprised of sources other than income, it may not reflect Fund performance.
Madison Covered Call and Equity Strategy Fund has experienced a decrease in its premium since our last update. MCN's portfolio has transitioned to a value-focused strategy, with healthcare, financials, and energy as the main allocations alongside a significant cash position. While the fund's valuation has improved, I believe there are more attractive call-writing alternatives available in the current market.
Madison Covered Call and Equity Strategy Fund has delivered strong performance compared to the benchmark, despite following a more value-oriented strategy. MCN offers diversification for investors with heavy exposure to stock indexes like the S&P 500 while yielding nearly 10%. The Fund's stable distribution policy and low exposure to the technology sector make it an attractive investment option.
The Madison Covered Call and Equity Strategy Fund offers a 9.92% yield, higher than most equity funds. The MCN closed-end fund has slightly underperformed the S&P 500 Index in the past two months but has a higher yield. The MCN fund's covered call options strategy provides income but sacrifices some upside potential in a strong bull market.
The Madison Covered Call and Equity Strategy Fund offers a high level of income and potential for upside compared to fixed-income funds. The MCN closed-end fund has underperformed the S&P 500 Index over the past two months, but its distribution partially offsets share price declines. The fund employs a strategy of writing covered calls on stocks in its portfolio to generate income, resulting in a higher yield than peer funds.
The rapidly rising cost of living has strained the budgets of many Americans. Wages have not kept up with the rising prices, forcing people to see alternative sources of income to maintain their lifestyles. Madison Covered Call and Equity Strategy Fund offers a high level of current income and gains through a covered call strategy.
MCN has been able to reduce losses relative to the market. This would be thanks to its call-writing strategy plus holding a significant portion of its portfolio in money markets.