A Closed-End Fund Holding Nvidia Yields 11.6%—Tapping America’s ‘Quiet Boom’

With U.S. markets closed for the Fourth of July holiday, a Forbes analysis is drawing attention to high-dividend strategies. The article argues that despite sour consumer sentiment, the U.S. economy is in a “quiet boom,” and it recommends a closed-end fund holding tech giants like Nvidia (NVDA) that yields 11.6%. As of the July 10 close, Nvidia was at $210.96, up 4.03% from the prior close of $202.78, with an intraday range of $201.92 to $211.^[Forbes]

America’s ‘Quiet Boom’: Data vs. Sentiment

Forbes columnist Michael Foster wrote on July 11 that the U.S. economy is experiencing a “quiet boom”—a period of sustained, long-term wealth growth that coexists with widespread public pessimism. The article cites data showing that real incomes for every generation of Americans have surpassed those of the previous generation over the past century. Specifically, disposable income per worker has doubled over 40 years to more than $11,000 annually, while the unemployment rate remains at a low 4.2%.^[Forbes]

Yet consumer confidence lags behind these strong economic numbers. Foster attributes this to higher inflation expectations and lingering financial memories from the pandemic era. This gap between data and sentiment forms the backdrop for the article’s specific investment recommendation.

11.6% Yield Fund: Holds Nvidia and Microsoft, Trades at 12.9% Discount

To tap into this underlying economic strength, Foster recommends the Liberty All-Star Equity Fund (USA). This closed-end fund’s portfolio is concentrated in top U.S. companies, including Nvidia and Microsoft. The article notes the fund offers an 11.6% dividend yield and has delivered strong performance over the past decade.^[Forbes]

Notably, the fund currently trades at a 12.9% discount to its net asset value (NAV). Foster describes this as a potential opportunity, arguing the fund is worth a look for investors seeking both income and growth from America’s long-term economic expansion.

Nvidia Stock Performance and Market Context

Nvidia, a key holding in the fund, has shown strong recent performance. According to Finnhub data as of the July 10 close, Nvidia was at $210.96, up 4.03% from the prior session’s close of $202.78. The stock opened at $202, hit an intraday high of $211, and a low of $201.92. With U.S. markets closed for the holiday, the stock remains at that close with no pre-market or intraday movement.

Dividend Strategy Gains Traction: Barron’s Also Bullish

High-dividend strategies are drawing attention from multiple financial outlets. Barron’s reported on July 10 that dividend stocks including Clorox (CLX) and Verizon (VZ) are flashing buy signals. The article, by Jacob Sonenshine, argues that now may be an excellent time to buy these “safer” dividend stocks, noting Clorox rose 3.75% and Verizon gained 1.41% on the day.^[Barron’s]

Another Barron’s market roundup noted that stocks edged higher on July 10, with SK Hynix making its U.S. market debut, as markets awaited upcoming inflation data and the start of big bank earnings season.^[Barron’s]

Institutional Moves: TSMC Gets Mixed Treatment

In the semiconductor space, institutional moves are worth noting. MarketBeat reported on July 12 that Ferguson Wellman Capital Management Inc. recently established a new position in Taiwan Semiconductor Manufacturing Company Ltd. (TSM).^[MarketBeat] Meanwhile, another MarketBeat report showed that Sumitomo Mitsui Trust Group Inc. reduced its stake in TSMC during the same period.^[MarketBeat] These divergent moves by institutions in the world’s largest chip foundry reflect differing views on the semiconductor sector’s outlook.

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