Cornerstone Progressive Return Fund (AMEX: CFP) has paid a monthly distribution of $0.0854 each month since January 2013. For 2012, they paid a monthly distribution of $0.091. Per the Board of Trustees statement on August 9, 2013, the fund will pay $0.0854 in October, November and December 2013. A very steady distribution that is currently yielding 19.9%. A solid performance by any standard, and, they can keep paying, because they are providing a part of the company's earning and a return-of-capital. This means while you maintain the number of shares you own, you are getting the part of the profits of the company and part of your initial investment back.
The company has offered to the current stockholders the opportunity to buy additional shares once a year at lower than market price. See the May 16, 2013 Record Date for Rights Offering. This allows the investors to increase their shares, while saving money. The company benefits with more capital to invest in new opportunities. I would strongly recommend this opportunity every year.
The company's financial picture includes a high/low year-to-date of $4.61 to $6.25 and with the current price of $5.16 in midday trading on October 31, 2013. There are 25.27 million shares outstanding and a market cap of 130 million. The company invests in other companies and products allowing a better return from choosing selected investments than generic market wide products. See the latest semi-annual report for the fund's holdings.
The Company's self-description includes:
Cornerstone Progressive Return Fund is a diversified, closed-end management investment. The Fund's investment objective is to provide total return. The Fund pursues its investment objective through investing primarily in the equity securities of U.S. and non-U.S. companies. The Fund invests primarily all of its assets in equity securities of U.S. issuers, non-U.S. issuers whose securities trade on a U.S. securities exchange or over the counter or as ADRs or other forms of depositary receipts, such as IDRs, which trade in the United States, closed-end investment companies and ETFs. The Fund pursues current income, as a component of total return, by investing in distribution-paying equity securities and U.S. dollar-denominated debt securities.
As of October 25, 2013, the fund's net asset value is $4.42 and is currently trading at a premium due to the investor's value of the high distribution. With the current stock price of $5.16 that is a 16.74% value in the stock price over the NAV. Over the last 3 years, the total assets of the fund have grown from 57 million in 2010, to 79 million in 2011 and near 119 million in 2012. Through June 2013, the assets totaled dropped to $109 million mostly due to the decrease in value from the effects of the Federal Reserve Chairman's statement to stop or curtail QE3.
Cornerstone Progressive Return Fund has created a well-managed, productive fund that pays well now and potentially for long-term distributions. If the investor buys into the annual purchase opportunity at below market price, the return would be even greater. We recommend this investment for its long-term outlook and positive cash flow.
See my Instablog for more information.