Closed-end Fund Income Investing

chiguy · Apr 12, 2006

Quote from optioncoach:

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.

thanks

toucan · Apr 15, 2006

Hi... This is a really great topic and discussion. I have read what everyone has written and am interested in researching more. I have looked at the etfconnect website and the yahoo finance website..... Other than the etfconnect and yahoo websites... Where are you all getting information that can be used to compare stocks.... for example... some of you have discussed leverage.... I can't seem to find consistent information... etfconnect has some links to stock fund websites or other information.... but comparable information can be spotty.

Thanks in advance for your replies... A great topic and discussion.

Toucan

tradinstox · Apr 15, 2006

hey optioncoach, any opinion on HYB? thanks in advance for
reply.

drsteph · May 8, 2006

Reasonable Article on thestreetdotcom about widening discounts in april, felt to be due to selling for cash due to tax payment reasons.

Notable for Herzfeld comments, and an analyst at Wachovia named Mariana Bush who I've not heard of before. She picks her top ten CEF's.

1. TYN
2. BGR
3. MFD
4. GDV
5. UTG
6. EVN
7. FEN
8. DCS
9. NAI
10. FGF

Link to full article:

http://www.thestreet.com/_yahoo/fun...ml?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

GTG · Jul 11, 2006

I was looking at INF, an Indian stock cef. I noticed that both MSN and finance.yahoo.com say that it has a 12.90% dividend yield:

MSN
yahoo

But when I look on etfconnect it says it has only a 0.27% yield.

Could someone please explain why the numbers are different?

GTS · Jul 11, 2006

Look at the dividend history, http://www.etfconnect.com/select/fundPages/global.asp?MFID=10498#Dividend History. The dividend payments are not regular so it all depends how you calculate it. Looks like that large payment in Jan 06 was not a typical event so I wouldnt rely on that for calculating the yield.

Babak · Jul 11, 2006

dividend is lumpy - not consistent so they probably have different look back periods which cause different yield numbers:

http://finance.yahoo.com/q/hp?s=IFN&a=01&b=15&c=1994&d=06&e=11&f=2006&g=v

EDIT:lol... we typed it at the same time

El OchoCinco · Jul 12, 2006

Hey all, sorry for the long hiatus from this thread but in a week or so I will be more active in the coming weeks if people are stil interested in keeping this going. I have not had much time the past few months to update my portfolio but have too much idle cash behind my credit spreads now and will need to rebalance and add more funds

stay tuned.

nlslax · Jul 12, 2006

Looking forward to it.

GTG · Jul 12, 2006

will be more active in the coming weeks if people are stil interested in keeping this going.

I'm definately still interested. The recent market volatility has made me very interested in increasing the percentage of my capital I put into CEF's.

I recently sold BGT at a profit, because the discount to NAV had closed since I bought it. Coach, do you generally sell your CEF's when the discount closes, or do you just hang on and continue to collect dividends?