The Adams Diversified Equity Fund employs a fundamental, technical, and quantitative analysis with a bottom-up stock-picking approach. They target outperforming the S&P 500 Index.
The article takes a look at ADX and measures its performance against its proclaimed goal; outperforming ETFs like SPY.
Whether ADX achieved its goal of outperformance depends on what investors did with their dividends and the time period. Understanding the calculations also matters.
While not always the case, ADX investors should reinvest their payouts to achieve the best return from their investment in this CEF. This is commonly referred to as DRIPing.
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The Closed-End-Fund reviewed here, the Adams Diversified Equity Fund (NYSE:ADX) is managed by Adams Express, a firm that dates back to 1854! The CEF was launched in 1929, just weeks before the market crash; how is that for timing! Several years ago, I wrote NotDRIPing High-Yield Securities Is Costly To Your ROI, which examined if skipping dividend reinvestment made a difference. When comparing the ADX CEF against the SPDR S&P 500 Trust ETF (SPY), we see that one decision makes a huge difference.
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I have both a BS and MBA in Finance. I have been individual investor since the early 1980s and have a seven-figure portfolio. I was a data analyst for a pension manager for thirty years until I retired July of 2019. My initial articles related to my experience in prepping for and being in retirement. Now I will comment on our holdings in our various accounts. Most holdings are in CEFs, ETFs, some BDCs and a few REITs. I write Put options for income generation. Contributing author for Hoya Capital Income Builder.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of JEPI either through stock ownership, options, or other derivatives.I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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