EVV: Good In Concept But Distribution Sustainability Is A Big Concern

We Are

Without a doubt, one of the biggest problems facing most Americans today is the incredibly high level of inflation that has been permeating the economy. For the past year, there is no month in which the consumer price index has increased by less than 6.5% on a year-over-year basis:

Trading Economics

This has caused real wages to decline for 21 straight months and has pushed many families to drain their savings or resort to credit cards to pay their bills and keep themselves fed. Others have been resorting to second jobs, as 81% of Generation Z members and 77% of Millennials have entered the gig economy or are strongly considering doing so to obtain the extra money that they need to feed and clothe themselves.

Fortunately, as investors, we do not have to resort to such drastic actions to obtain the extra money that we need to keep the bills paid and feed ourselves. This is because we can put our money to work for us to obtain higher incomes. One of the easiest ways to do this is to purchase shares of a closed-end fund that specializes in the generation of income. These funds are nice because they provide easy access to a professionally managed portfolio of assets that can usually deliver a higher yield than any of the underlying assets possesses.

In this article, we will discuss the Eaton Vance Limited Duration Income Fund (NYSE:EVV), which is one closed-end fund (“CEF”) that can be used for this task. This fund yields a whopping 11.59% at the current price, which is certainly enough to turn anyone’s head. It is also substantially higher than the 1.54% yield of the S&P 500 Index (SP500), but this is hardly unusual for a closed-end fund. As the fund certainly looks impressive at first glance, let us have a deeper look at it and see if it could be a good addition to a portfolio today.

About The Fund

According to the fund’s webpage, the Eaton Vance Limited Duration Income Fund …

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