Two segments of the market that have struggled to keep up over the past year - international stocks and dividend stocks - have slowly been making a comeback. That potentially presents a window of opportunity for covered call strategies to outperform. The BlackRock Enhanced Global Dividend Trust (BOE) is one fund on my radar that may be able to take advantage of all of these factors.

In high yields, returns have been solid and outperformance has been steady, but spreads are incredibly narrow suggesting limited upside. That’s why funds that can be flexible and change with conditions can be so valuable. The PIMCO Dynamic Income Fund (PDI) has the ability to remain nearly unconstrained, having the ability to invest in all sorts of fixed income assets from all around the world.

Credit spreads are back to multi-year lows and the prospect of multiple rate cuts from the Fed this year has a lot of folks believing that conditions for junk bonds might even improve for these issuers before they get worse. I’m not one of them, but I think we do need to acknowledge that sentiment is what it is at the moment. Which leads me to the Pioneer Diversified High Income Trust (HNW).