Closed-end Fund Income Investing

Because I am lazy to look it up myself, what is the yield on that fund?

Quote from drsteph:

So I'll just note for the group that BGR's nav has been recently rising, while its discount has been dropping.

NAV as of 4/11/06 :30.74
Share price today: 26.84
Discount of about 13%, which is close to its max discount ever.

Undoubtedly held back by Natural gas, and I'm guessing someone sitting on the bid at 27.00 (since high is 26.95, making it convenient to manipulate, as you know). Volume is light too.

Taking a look at the annual report, if I am reading it correctly, there does look to have been a decent amount of UNII even back as of 10/31/05. That was at a NAV of $28. Nav now almost $31, as you see above. No long term cap gains paid as the fund had not been in existance a year as of 12/31/05.

Not sure about why the discount is so large for an energy providor, but so be it.

Just posting for information's sake.
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Wow, that seems low for such a deep discount. If it was trading at par, it would be around the t-bill rate. I assume this is more a cap appreciation play than pure yield?

Quote from drsteph:

yields 5.6% on ETF connect, yahoo says 5.7%.
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Quote from chiguy:

nope....long from a long time ago...probably should have done the calc...sorry
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's ok... can't do the premium thing, sorry! I'm too cheap.

And I thought you were from chicago....
 
The premium is high but the yield is quite nice. My worries about such high premiums is that if the dividend is cut at all or the NAV dips for any reason, the price could drop 5% fast.

If you were long this fund for some time then it is a great hold as even giving back some unrealized capital gains on a pullback is compensated by the healthy yield you are collecting over time. However with the premium at its year high, I would not touch it as a new entry right now.
 
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