Guggenheim Strategic Opportunities Fund

Guggenheim Strategic Opportunities Fund operates as a diversified, closed-end management investment company. The fund intends to maximize total return through a combination of current income and capital appreciation. It pursues a relative value-based investment philosophy, which utilizes quantitative and qualitative analysis to seek to identify securities or spreads between securities that deviate from their perceived fair value and/or historical norms. The company was founded on November 13, 2006 and is headquartered in Chicago, IL.

The Guggenheim Strategic Opportunities Fund is a top-performing credit fund with an unsustainable distribution policy. The fund's 18% NAV distribution yield far exceeds its 8.9% long-term returns, depleting NAV and making the distribution policy unsustainable. With its premium to NAV once again over 30%, I believe investors should sell GOF to avoid a likely collapse of the premium in the coming quarters.

GOF: Here We Go Again

Advent Convertible and Income Fund

Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust

Guggenheim Active Allocation Fund

NEW YORK, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

Guggenheim Investments Announces December 2024 Closed-End Fund Distributions

Ares Capital

BlackRock Science & Technology

Crescent Capital BDC Inc

Calamos Dynamic Convertible & Income Fund

Calamos Global Total Return Fund

Eaton Vance Enhanced Equity Income Fund II

Eaton Vance Tax Advantaged Global Dividend Opportunities Fund

Eaton Vance Tax-Advantaged Dividend Income Fund

Fidus Investment

John Hancock Tax-Advantaged Dividend Income Fund

JPMorgan Equity Premium Income ETF

JPMorgan Nasdaq Equity Premium Income ETF

Barings Corporate Investors

PIMCO Corporate & Income Strategy Fund

PIMCO Dynamic Income Fund

John Hancock Premium Dividend Fund

PIMCO Corporate & Income Opportunity Fund

Global X NASDAQ 100 Covered Call ETF

Cohen & Steers Quality Income Realty Fund

Royce Value Trust

Global X Russell 2000 Covered Call ETF

Special Opportunities Fund Inc

Credit Suisse X-Links Crude Oil Shares Covered Call ETN

Cohen & Steers Infrastructure Fund Inc

Closed-end funds are special income vehicles, with many positive aspects and just as many weaknesses that take time to be properly understood and evaluated. I discovered their existence about ten years ago, and over time, I became convinced of their worth by developing a personal method of selection based mainly on NAV performance. This is an analytical, data-driven approach which I then extended to other types of securities in my portfolio, namely ETFs and BDCs.

My 9.5% Income Portfolio CEFs And Classic Cars

NEW YORK, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

Guggenheim Investments Announces November 2024 Closed-End Fund Distributions

Alpine Total Dynamic Dividend Fund

Ares Dynamic Credit Allocation Fund

Aberdeen Standard Global Infr Inc Fd

CBRE Global Real Estate Income Fund

Nuveen Real Asset Income & Growth Fund

MainStay CBRE Global Infrastructure Megatrends Fund

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

Invesco Senior Income Trust

Western Asset Diversified Income Fund

As a retired income investor, I focus on high-yield CEFs for reliable monthly distributions and potential capital gains from NAV discounts. Five CEFs to avoid currently: GOF, VVR, ARDC, WDI, IGR, due to high relative premiums or unfavorable market conditions. Recommended CEFs to buy/add: AOD, ASGI, JRI, MEGI, OPP, FSCO, offering high yields and potential for capital gains with favorable market conditions.

Eleven High-Yield Closed End Funds: Five To Watch And Six To Buy

My portfolio includes CEFs, ETFs, a few BDCs and an ETN, for whose selection I have developed over the years a criterion based mainly on NAV performance. In this article, however, I decided to focus on the price of each security in my portfolio, comparing it with the lows and highs touched throughout its history. An overview of the path each one has taken from launch to current market quotation with a personal assessment of the possible room for maneuver from those values.

My 9.5% Income Portfolio-Fifty Shades Of Blue

GOF is a diversified closed-end fund with a strong long-term performance, yielding 13.8% annually since inception. The fund's current valuation is rich, trading at a 32% premium to NAV. GOF's portfolio is credit-heavy, leveraging high-yield debt and securitized loans.

GOF: The Ascending Valuation Is A Problem

NEW YORK, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions*. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

Guggenheim Investments Announces October 2024 Closed-End Fund Distributions

Eagle Point Credit

Oxford Lane Capital

Total Return is a percentage measure reflecting the total performance of a fund, incorporating both capital gains and the effect of dividends reinvested over a specific period. Net Asset Value is the value of an investment fund, determined by subtracting liabilities from assets. The fund's per-share NAV is found by dividing NAV by number of shares outstanding. A positive Total Return with a negative NAV performance creates dissonance in my opinion, whereas having both values positive gives a favorable indication of the quality of a fund.

My 9.5% Income Portfolio-The View From The Top

NEW YORK, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

Guggenheim Investments Announces September 2024 Closed-End Fund Distributions

Guggenheim Strategic Opportunities Fund operates as a closed end fund that generates its earnings through a mixed portfolio of fixed income assets and equities. The large 13.8% dividend yield makes GOF appealing for income investors, but I question the sustainability of the distribution due to weak coverage. GOF has outperformed the S&P 500 with a 37% YTD return through a combination of price appreciation and high income.

GOF: Distribution May Be Under Threat If There Are No Improvements

NEW YORK, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

Guggenheim Investments Announces August 2024 Closed-End Fund Distributions

NEW YORK, July 01, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

Guggenheim Investments Announces July 2024 Closed-End Fund Distributions

Guggenheim Strategic Opportunities Fund trades at a 23.86% premium to NAV, with a distribution rate of 16.2% and total leverage ratio of 22.6%. The fund has a history of trading at a premium and strong performance, outperforming high-yield and aggregate bond ETFs. The fund's portfolio includes various fixed-income instruments, bank loans, high-yield bonds, and preferred securities, but may face downside risk in riskier credit scenarios.

GOF: Why I'm Downgrading This 16.2% Distribution Rate To A Sell

NEW YORK, June 03, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

Guggenheim Investments Announces June 2024 Closed-End Fund Distributions

Doubleline Opportunistic Credit Fund

BNY Mellon High Yield Strategies Fund 

DoubleLine Income Solutions Fund

Western Asset Global High Income Fund

Eaton Vance Limited Duration Income Fund

Gabelli Dividend & Income Trust

Western Asset High Income Fund

Barings Participation Investors

Six years ago, I wrote my first article on investing, in which I outlined the criteria that had guided me when constructing my first income portfolio. I have tried to retrace here the steps leading up to that article and then subsequent developments in creating my current portfolio. Today, I favor CEFs and ETFs that, in addition to providing regular income, show a positive NAV performance since inception, thereby demonstrating their ability to also generate value over time.

Building A 10% Income Portfolio Today

Blackrock Health Sciences Trust

DNP Select Income Fund Inc

Gabelli Global Utility & Income Trust

Gabelli Utility Trust

Leggett & Platt

Reaves Utility Income Fund

Closed-end funds tend to cut their payouts over time due to negative consequences of leverage during market crashes, leading to potential permanent capital destruction. Today, we are looking to revisit the six funds that have inceptions prior to the 2008/09 Global Financial Crisis that have still never cut their regular distributions. A long history of no-cuts can be important for income-focused investors, but we also examine coverage and valuations to determine whether they are worth exploring further.

Closed-End Funds: 2024 Revisit Of Funds That Never Cut Distributions With Inception Pre-2008

Guggenheim Strategic Opportunities Fund suffered a severe drop in price due to market volatility in October 2023. There may be an opportunity for new investors to buy if the premium is reduced in the coming months. GOF offers a monthly distribution with an average yield of about 15% and has never cut its dividend.

GOF: Back To Holding For The 15% Distribution

NEW YORK, May 01, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

Guggenheim Investments Announces May 2024 Closed-End Fund Distributions

Reinvesting shares at a discount in high yield funds can accelerate future income growth and preserve invested capital.

Closed End Funds That Offer A Discount To Reinvest

NEW YORK, April 01, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

Guggenheim Investments Announces April 2024 Closed-End Fund Distributions

Surrounded by the smoothness of the Tuscan landscape, I have always thought that the pursuit of harmony in human activities is the first step toward happiness. I also chase a balance in investments, seeking to create a portfolio whose securities provide a steady cash flow over time and grow the nominal capital invested.

My 9% Income Portfolio - Harmony In Investment

The Guggenheim Strategic Opportunities Fund has been praised for its double-digit dividends, but I am now limiting my stake in GOF and phasing it out of my CEF portfolio. GOF is a mixed bag of assets with a growing allocation to stocks, and it has performed well against its benchmark. Recent performance has been spurred on by a rise in premium, and the trade I recommended in November has come to a close.

GOF: Rethinking Opportunistic Credit, Despite Heavy Payouts (Downgrade)

The Guggenheim Strategic Opportunities Fund has been performing well at market price so far this year, up 17%, but its NAV performance has been extremely underwhelming comparatively. As a result, GOF is now at the top of my list of CEFs that have seen their market price far outperform their NAV, which is a red flag near term. With GOF back to a 20%-plus premium and an NAV only up 1.5% year-to-date, GOF is extremely overpriced and will have a hard time covering its 18.0% NAV yield.

Downgrading Guggenheim Strategic Opportunities Fund From A Buy To A Sell At $14.70

NEW YORK, March 01, 2024 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have declared their distributions. The table below summarizes the distribution schedule for each closed-end fund (collectively, the “Funds” and each, a “Fund”).

News for Guggenheim Strategic Opportunities Fund ETF (GOF)