5 Eaton Vance Stocks for 2023: Discover Underrated Gems

Introduction:

Are you seeking high-yield stocks to diversify your portfolio and earn passive income? Look no further than Eaton Vance, a renowned investment management firm. With a track record of over 90 years, Eaton Vance has consistently delivered exceptional returns to its investors. In this comprehensive guide, we'll explore five underrated Eaton Vance stocks that have the potential to soar in 2023.

1. Eaton Vance Senior Floating-Rate Fund (EFL):

EFL is a closed-end fund that invests in senior secured floating-rate loans. These loans typically offer higher yields than traditional bonds, making EFL a compelling option for income-seeking investors. According to Morningstar, EFL has a yield of 8.21%, significantly higher than the average yield of 4.78% for its peers.

2. Eaton Vance Tax-Managed Global High Yield Bond Fund (EGY):

EGY is a mutual fund that invests in global high yield bonds. By combining global diversification with high yield potential, EGY offers a unique opportunity for investors to enhance their income and potentially reduce risk. As of December 31, 2022, EGY had a yield of 6.63%.

3. Eaton Vance NextShares:

NextShares are a series of closed-end funds that provide investors with the potential for enhanced dividend yields. By utilizing a "covered call" strategy, NextShares aim to generate income while reducing the volatility associated with traditional dividend-paying stocks. According to the company, NextShares have an average yield of 10.90%.

4. Eaton Vance Enhanced Equity Income Fund (EOI):

EOI is a hybrid fund that invests in a combination of stocks, bonds, and convertible securities. By diversifying its portfolio across asset classes, EOI aims to provide investors with a balance of income and growth. As of December 31, 2022, EOI had a dividend yield of 7.32%.

5. Eaton Vance Municipal Income Trust (EVN):

EVN is a closed-end fund that invests in municipal bonds. Municipal bonds are typically issued by state and local governments and offer tax-free income to investors. As of December 31, 2022, EVN had a yield of 4.74%.

Conclusion:

Eaton Vance offers a diverse range of stocks and funds that cater to the needs of income-oriented investors. The five stocks highlighted in this article have the potential to generate high yields and enhance the diversification of your portfolio. Before investing, it's essential to conduct thorough research and consult with a financial advisor to determine which stocks are right for your individual investment goals and risk tolerance.