As the United States marks its 250th anniversary, an underappreciated development is unfolding within its economy.

A subtle expansion.

It is another reason to celebrate this month, and we will do exactly that. We will also prepare for the next phase of America's steady growth run by highlighting a closed-end fund delivering more than 11.6%.

The chart that appeared in The Economist two years ago illustrates the long-term wealth creation of the US economy.

The crucial detail appears on the left side of the chart. It shows that over the past century each generation of Americans has begun its career with higher earnings than the one before, and the figures are adjusted for inflation.

However the data is examined, the country continues to grow wealthier across generations.

This positive outlook may seem unusual amid the negative headlines, yet the numbers remain clear. Updating the picture with current figures shows Americans' inflation-adjusted disposable income has risen steadily and now stands near $11,072 per person annually, double the level of four decades ago.

That increase is notable. Even with recent concerns about employment, the unemployment rate holds at 4.2%, indicating solid job prospects for most workers.

Still, a gap exists between these positive statistics and consumer attitudes, which appear in the chart below.

The blue line tracks the steady climb in disposable income, interrupted only briefly during the pandemic. After returning to its upward path, consumer sentiment, shown in green, has stayed low for years following the end of restrictions. Lingering effects from the temporary income surge during COVID may contribute to this mood.

Inflation remains above the levels seen in the 2010s, and many economists now expect an average rate near 3% rather than 2% going forward. Even so, Americans continue to earn and spend more, extending a century-long pattern.

An 11.6% Payout With an American Focus

The achievements of the past 250 years are remarkable, especially given the century of rising prosperity that followed.

The Liberty All-Star Equity Fund (USA) offers one way to participate, highlighted by its fitting ticker symbol. The fund provides holdings in major US companies including NVIDIA, Microsoft, Alphabet, and Amazon.com.

Beyond technology, positions in Capital One Financial, Visa, and Humana also rank among its largest. The fund converts portfolio gains into the 11.6% distribution, which has increased alongside market advances.

USA's Growing Distribution

The fund targets an annual payout equal to 10% of net asset value, which explains the variation in the distribution over time.

That distribution trend follows the fund's results. Over the past ten years its market-price total return has more than tripled, while its net-asset-value total return has stayed close behind.

USA Advances Higher on Both Measures

The right side of the chart shows the net-asset-value return narrowing the gap with the market-price return, producing a 12.9% discount to net asset value, a level last seen in 2017 and at odds with the fund's long-term record and rising payout.

USA Returns to 2017 Pricing

The lasting impact of the high distribution should not be overlooked. The next chart compares two hypothetical $100,000 investments made a decade ago: one that reinvested distributions and one that used them for spending while relying on price gains.

Both outcomes proved favorable.

USA Delivers Strong Results Regardless of Distribution Use

The investor who spent the distributions still saw the initial holding grow to $116,230. The investor who reinvested now holds a position valued at $317,610.

The example shows how a fund such as USA can capture America's long-term expansion, whether income is needed or reinvested.

Four Additional Patriotic Yields Above 10% as America Reaches 250

This steady expansion extends beyond the overall economy and includes advances in specific areas.

Pharmaceutical research benefits from artificial intelligence that shortens development cycles and supports higher future sales. Manufacturing gains from AI-driven robots that adjust operations instantly, lowering expenses and improving output quality.

Closed-end funds allow investors to access these sector advances while collecting substantial income.

Four such funds currently stand out. They yield 10% on average and, like USA, trade at discounts that may not last.

As sentiment shifts from caution to expansion, those discounts are likely to close and the largest gains may pass.

Acting now helps capture the current opportunity. Additional details appear in the linked Special Report that names the four funds yielding 10%.

Further USA Research:

Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.