High Yield Spotlight

2025 has marked the return of dividend stocks, but more in the sense of conservative stocks falling less than the broader market during a downturn. With the April data coming soon on many fronts, we may soon get confirmation that recession risk is rising and risk-off conditions may be ready to extend for a while. The abrdn Total Dynamic Dividend Fund (AOD) invests in this area of the market.

If you’re worried that interest rates are going to rise, it makes sense to take some duration risk off the table or pivot from longer-term bonds to shorter-term ones. In isolation, that seems logical, but investing in bonds is never about just one factor. Interest rate risk, credit quality and portfolio composition are all variables that one must consider. In the case of the Eaton Vance Limited Duration Income Fund (EVV), there’s another issue to consider - leverage.

Risk remains high and the sharp ups & downs in both stock & bonds are the trademark of a market dominated by volatility, not one demonstrating a firm trend in either direction. For those looking to stick with equities, that could mean choosing dividend stocks over growth. For income seekers, that could mean using this volatility to capture a little extra yield in options. If you want to combine both of these in a single product, consider the BlackRock Enhanced Equity Dividend Trust (BDJ).