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Buy This 6.7% Yielder Before the Fed Raises Rates

JRO is designed to adjust its dividend as interest rates change

   

Nuveen Floating Rate Income Opportunity Fund (JRO) — This closed-end fund is designed to adjust its dividend as interest rates change. Thus, it could be an ideal hedge or investment in a period when the Federal Reserve backs away from supporting a low-interest rate scheme.

The fund invests at least 80% of its managed assets in adjustable-rate loans. It currently pays a monthly dividend that equals $0.876 annualized, for a 6.7% yield.

JRO is in a bull market with support at its 200-day moving average and bullish support line. Buy this fund at the market in anticipation of higher interest rates.

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chart key 300x84 Buy This 6.7% Yielder Before the Fed Raises Rates


Article printed from InvestorPlace Media, http://investorplace.com/2013/06/trade-of-the-day-nuveen-floating-rate-income-opportunity-fund-jro/.

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