Liberty All-Star Growth Fund Offers 9% Dividend at Discount

The closed-end fund's portfolio of blue-chip stocks trades at a 9.8% discount to net asset value.

Feb. 1, 2026 at 9:39am

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Michael Foster, lead research analyst at Contrarian Outlook, is recommending the Liberty All-Star Growth Fund (ASG) as a compelling investment opportunity. The fund, which pays a 9% dividend, is currently trading at a 9.8% discount to its net asset value (NAV). Despite concerns about a potential market bubble, Foster argues that the fund's strong long-term performance and stable dividend make it an attractive buy, especially with the current discount.

Why it matters

In an environment of market uncertainty, the Liberty All-Star Growth Fund offers investors a high-yielding investment option with a portfolio of blue-chip stocks trading at a significant discount. The fund's ability to consistently outperform its NAV over the long term suggests the current discount may narrow, providing potential upside for investors.

The details

The Liberty All-Star Growth Fund holds a portfolio of large-cap US stocks, including NVIDIA, Microsoft, and Apple, as well as mid-cap companies like FirstService and Ollie's Bargain Outlet. Despite the fund's strong 11.5% annualized NAV return over the past decade, its market price is currently trading at a 9.8% discount, allowing investors to buy the fund's underlying assets for around 90 cents on the dollar. This discount helps reduce valuation concerns as the market continues to rise, and it also supports the fund's ability to maintain its 9% dividend, which is lower than the 8.1% payout based on NAV.

  • Over the last three years, ASG has delivered about a 12% total NAV return.
  • ASG has posted an 11.5% annualized NAV return over the last decade.

The players

Liberty All-Star Growth Fund (ASG)

A closed-end fund that holds a portfolio of US blue-chip and mid-cap stocks.

Michael Foster

The lead research analyst at Contrarian Outlook, who is recommending the Liberty All-Star Growth Fund as an investment opportunity.

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What they’re saying

“Remember that recession we were told had a 100% chance of happening back in 2022? Well, we're still waiting for it.”

— Michael Foster, Lead Research Analyst (Forbes)

“When you account for the AI effect, the 13.4% return the S&P 500 has put up over the last 12 months (versus its long-term average of 10.6% annualized) makes sense. The market is simply telling us that it's pricing in a bit of extra juice from this new tech.”

— Michael Foster, Lead Research Analyst (Forbes)

What’s next

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