Clifford

Boulder Growth & Income Reckoning with Questionable Shareholders

BIF "Yields" 32% which is of course not yield, it is a return of capital. When will these closed end funds get real on yield. with the discount, a real yield would be closer to 5-10% which would be enough to attract real investors. With the current yield, why not put my money in a money market and ask my brokerage to "Pay" me 32% out of interest and principal annually. It is insane, but because many do not understand the difference between yield and return of capital we are doomed to watch a sad and steady decline in NAVs and an ever increasing "dividend" in these funds. I would not invest in BIF with the current payout strategy even though the discount is attractive.