Buy This 6.7% Yielder Before the Fed Raises Rates

by Sam Collins | June 11, 2013 1:34 am

Nuveen Floating Rate Income Opportunity Fund (JRO[1]) — 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.

06 11 13 jro 300x186 Buy This 6.7% Yielder Before the Fed Raises Rates
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chart key 300x84 Buy This 6.7% Yielder Before the Fed Raises Rates[2]

Endnotes:
  1. JRO: http://studio-5.financialcontent.com/investplace/quote?Symbol=JRO
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

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