Closed-Ended Fund Offers Double-Digit Monthly Income
Let’s face it, 2024 and now 2025 haven’t been kind to income investors chasing stability. Between interest rate whiplash, inflation headlines, never-ending noise from the Federal Reserve, and wild rate predictions from big banks, it’s been tough to figure out where to park cash and get paid without constantly looking over your shoulder.
The so-called dividend aristocrats, real estate investment trusts (REITs), business development companies (BDCs), and even utility stocks have been all over the map. But there’s a corner of the stock market that has been have quietly doing its job: I’m talking about closed-end funds (CEFs) that have been paying consistent monthly income.
One of those hidden gems is Advent Convertible and Income Fund (NYSE:AVK).
AVK stock isn’t the hottest name in town these days, and it’s not trying to be, either. But, what Advent is doing is delivering double-digit monthly income—and it has been doing so for a very long time. AVK hasn’t skipped a payment since 2003. During this time, there have been several major stock market crashes, economic slowdowns, big moves in interest rates, and so on.
What Does Advent Convertible and Income Fund Do?
Advent Convertible and Income Fund is what’s called a CEF. This simply means it’s a professionally managed investment fund that holds a collection of income-generating assets. The main goal with CEF generally is to provide investors with a steady stream of income and some potential for long-term growth as well.
Advent Convertible and Income Fund focuses on two main types of investments:
- Convertible securities, which are like regular bonds, but they come with a twist—an investor can choose to convert them into shares. So, if the company’s stock does well, a shareholder gets to benefit from that upside.
- High-yield income securities, which are bonds issued by companies that are a bit riskier than big-name firms. Because of the extra risk, these bonds usually pay higher interest rates to attract investors.
On top of all of this, Advent also uses leverage—which basically means it borrows money to invest more. The idea is that if the fund’s investments do well, this borrowing could boost returns. (Source: “Overview,” Guggenheim Investments, last accessed August 4, 2025.)
22 Years Without Missing a Monthly Payment
When building a dependable income stream, consistency is everything. Anyone can promise a high yield, but very few deliver it month after month or year after year, especially through market chaos.
That’s where AVK stock stands out.
AVK stock has paid monthly dividends without interruption since 2003. That includes the 2008 financial crisis, the COVID-19 market crash, the Fed’s aggressive rate hikes, and everything in between. While other funds have cut, paused, or restructured their payouts, Advent just kept sending checks.
Make no mistake, this kind of track record doesn’t happen by accident. It’s the result of experienced management, disciplined asset selection, and a strategy designed with income in mind.
At the current price, AVK stock has a dividend yield of 11.56%, paying $1.41 on an annual basis.
Chart courtesy of StockCharts.com
AVK Stock: Getting $1.00 for $0.97
One of the unique features of CEFs is that one can buy them at a discount to their net asset value (NAV). Think of it as buying $1.00 worth of assets for less than a dollar.
As of the time of writing, AVK stock trades at about a 3.71% discount to NAV.
That means investors are getting access to a portfolio of income-producing securities at a markdown. Over time, this discount can close, adding another layer of capital appreciation on top of the already juicy dividend yield. The 52-average discount on AVK stock has been around 3.25%.
In other words, you aren’t just getting paid to wait with AVK stock; you are actually getting paid quite well, and you might get capital upside, too.
The Lowdown on AVK Stock
If your goal is steady monthly income and you don’t want to keep guessing what the market’s going to do next, AVK stock deserves your attention.
No, this fund isn’t going to double or triple in price. It’s not chasing headlines or trying to be the next artificial intelligence winner. AVK is built for one thing: income. And it’s been doing its job quietly and reliably for over 22 years without missing a single monthly payout. This kind of track record is rare.
However, it’s important that income investors are aware that AVK stock comes with its own unique risks. Three of the biggest risks are as follows:
- Leverage risk: This fund borrows money. This can work both ways—gains can get bigger, but so can losses.
- Credit risk: A big portion of the fund’s portfolio is in high-yield bonds, which means there can be steep losses if defaults increase.
- Interest rate risk: If rates get volatile, bond prices (and the fund’s NAV) could take a hit.
With that said, for investors who understand these dynamics and want a high-yield monthly income stream, AVK stock offers something rare: professional management, reliable distributions, and a discount to NAV.