The First Trust Dynamic Europe Equity Income Fund (FDEU, Financial) has announced a monthly dividend of 12.1 cents and is also paying a special dividend of 20.75 cents. The dividends are payable on Oct. 16 with an ex-dividend date of Oct. 2.
The fund has been paying a monthly dividend since 2015. The special dividend of 20.75 cents is only the fund’s second special dividend. The first special dividend was for 23.50 cents and was paid in July 2017. The fund is currently trading at $19.21 with a forward dividend yield of 7.55%. Year to date, the fund has gained 23.84%.
The fund seeks a high level of income from investments in European stocks. The fund’s objective also manages for capital appreciation. The fund holds at least 80% of its portfolio in equity securities of European companies. The companies have varying market capitalizations and the investments include a range of income paying assets such as common stock, preferred stock, depositary receipts and real estate investment trusts. The fund also uses derivatives to hedge currency exposure and add additional income.
As of July 31, the fund’s top three holdings were: Enel S.p.A. (MIL:ENEL, Financial), ING Groep N.V. (XAMS:INGA, Financial) and Bayer AG (XTER:BAYN, Financial).
Managing through the challenges of Brexit, the fund has gained 19.83% over the past year. Its holdings are still highly concentrated in the U.K. with 28% of the allocation. However, it also holds 18% of its portfolio in France, 12% in Germany, 11% in Italy and 10% in Switzerland.
The Fund is structured as a closed-end fund and was launched in September 2015. It invests across all industries with the highest allocation to financials at 21%.
It currently has 17.2 million shares outstanding with a market cap of $332.4 million. First Trust Advisors L.P. is the investment advisor, but the fund is also subadvised by Henderson Global Investors (North America) Inc.
Disclosure: I own FDEU.
