When it comes to dividend cuts, closed-end funds (CEFs) aren’t much different from stocks: investors tend to hit the sell button as soon as a cut is announced, leaving those who hang on with a shriveled income stream and a hit to the value of their investment. In fact, sometimes a selloff in response to a dividend cut can be worse with CEFs because investors mainly look to them for income, with the average CEF yielding 7.5% today. This is obviously a situation we want to avoid, which is why I’m writing you now: we’re going to look at two recent CEF dividend cuts to see what they can tell us about dodging said cuts.… Read more