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annedonc

annedonc
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  • Buy-Write CEFs Are An Alternative To An S&P 500 Dividend Fund [View article]
    Dr. D has re-stressed a key point when investing in buy-write CEF's, not just excellent yield in such CEF's as ETV,ETW, ETB, etc, but rather for their tax advantaged properties, which translates into a considerably higher (for me, as I approach retirement) AFTER tax return. I am in an upper income bracket and always look at what all investors are interested in from our cash distributions-what you can pocket and spend after federal and state taxes. I don't think you can make a simple buy decision for one's taxable accounts in these days of high (and possibly higher) future taxes without consideration of the tax burden, unless you are in the a very low income bracket. To me, ordinary income distributions vs. the above CEF's ,such as ETV, distributions, equates to an almost 35% swing in my after tax pocketed income. It is important, as LB plans to do (I hope), give the % of calls written on the CEF's portfolio, as this will determine the % of ROC (and lower tax burden).
    Jul 13 07:31 AM | 2 Likes Like |Link to Comment
  • Should You Sell ETW And Buy EXG? [View article]
    A main consideration for my investing in the various EV option/write generous yielding CEF's over the past 2 years is for tax considerations with the non-destructive ROC. Although EXG is shown as writing about 45% options on its portfolio, I have noted that ALL of its income in the past 6 months has been 100% ordinary income (i.e. fully taxable).
    Jun 24 06:25 AM | 1 Like Like |Link to Comment
  • Enhancing Retirement Income With A Portfolio Of Covered Call CEFs: Part I [View article]
    You did not read my post correctly-I said the income for 2014 is 100% ordinary income, not ROC. In the past, about 75% of their distributions have been ROC
    Jun 15 11:21 AM | Likes Like |Link to Comment
  • Enhancing Retirement Income With A Portfolio Of Covered Call CEFs: Part I [View article]
    Thank you for the above topic. IMO this is a good area of investment to consider, particularly if one is interested in not just good income, but also tax advantaged income (as I am) in my taxable accounts. Doug Albo wrote a number of excellent explanatory articles in SA about these type of CEF's about 1 1/2 yrs. ago, and I bought into JLA, ETV, ETW, and EXG. I have done very well with all with both sig. unrealized gains as well as consistent excellent distributions, much of which have been non-taxable (non destructive ROC). But one most be vigilant - (1) now JLA is being consolidated into QQQX by Nuveen, has cut its quarterly distribution this year, but it appears this change will not affect its % of option writing strategy, but we will see, (2) EXG states it has around a 50% options writing strategy (lower than ETV, ETW, ETJ mentioned above), but for the past 6 months, its monthly distributions have dramatically changed from about 75% ROC to 100% ordinary income! That, to me, is a huge swing in my after tax pocketed income from these distributions, and defeats one of the main reasons I bought into EXG. I am not sure why as no explanation that I can see on their web site.
    Jun 15 07:25 AM | Likes Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    As primarily a focused income investor in a high tax bracket, I bought JLA as well as several Eaton Vance option/income CEF's over a year ago, after Doug's in depth look and explanation of these type of CEF's in latter 2012, in large part for their tax advantaged status with their constructive ROC. To say I have been pleased at my buys is an understatement, sitting on a lot of unrealized gains, but particularly when I look at my excellent after tax yield of 9-10%. With my investment strategy, my current take on the merger is negative in that QQQX will sell, as Doug points out, only about half the index options as JLA does, plus its distribution yield will be lower, and both I expect to lead to less after tax income for me.
    May 4 07:12 AM | 1 Like Like |Link to Comment
  • Preferred Stocks With A Pop [View article]
    Ditto on Michael Terry
    Also excellent sources on preferred stock analysis are
    (1) The Yield Hunter
    (2) Doug K Le Du here on SA-see many articles he has contributed
    (3) a blogger who goes by the handle of Lord Xot-posts on siliconinvestor.com and Morningstar discussion area primarily.
    Feb 21 06:43 AM | Likes Like |Link to Comment
  • Citi - At 6.97%, New Preferreds Are Cheap [View article]
    need to troll the SEC site for C
    http://1.usa.gov/1iAvZ2q
    http://1.usa.gov/1iAvWUc
    Feb 8 12:54 PM | Likes Like |Link to Comment
  • Citi - At 6.97%, New Preferreds Are Cheap [View article]
    100% ditto on your QDI philosophy. However, you are not correct-this IS a QDI issue. Below is word for word right out of the prospectus:

    Certain Federal Tax Considerations

    "Dividends paid to individual U.S. holders generally will be taxable at the preferential rates applicable to long-term capital gains subject to certain conditions and limitations. Dividends paid to corporate U.S. holders generally will be eligible for the dividends received deduction, subject to certain conditions and limitations. Dividends paid to non-U.S. holders generally will be subject to withholding of U.S. federal income tax at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. For more information, see “Certain U.S. Federal Tax Considerations” beginning on page S-18. "
    Feb 8 12:32 PM | Likes Like |Link to Comment
  • Citi - At 6.97%, New Preferreds Are Cheap [View article]
    Well, if you review the payment history of common dividends and preferred dividends of a number of banks (which only issue non-cum preferreds now), it is reassuring that there is a long history for many of these banks of reliable payments for both over many yrs., (even during the credit crisis) without any suspension of payments on preferreds. And remember, the common dividend is not paid unless the preferred dividend is satisfied. I think it is ideal to have a cumulative feature, but it just is not going to be case if you consider buying into banking preferreds. I think there are a number of very risk acceptable good QDI yielding buys in this area of such as FRC, FNB, MS, BPFH, and C that have come out in the past several months IMO. Personally, I would not consider the non-cum feature the be all and end all if everything else about the preferred satisfied my risk assessment.
    Feb 8 08:06 AM | 3 Likes Like |Link to Comment
  • JPMorgan: 6.70% And Cheap To Peers [View article]
    See a recent SA article in Nov. by Doug K Le Du-past 10 year data shows that variable rate prefereds that float at the IPO have significantly less income/return as compared to fixed rate preferreds. Newer preferreds such as those issued in recent months, FNB-E, C-K, MS-E, and MS-F that are fixed rate for 10 years, then are callable and float after that time period, most likely would be called if the interest rates after the 10 year fixed period were higher (most likely will be the case as compared to the very low rates now) so the investor would not benefit from rising yields once the fixed rate ended. The issuer almost certainly would call these if the higher rate exceeded the initial coupon yield.
    Jan 26 08:07 AM | Likes Like |Link to Comment
  • Assessing Covered Call Closed-End Funds To Enhance Retirement Income [View article]
    What about total return? A lot of distributions (a plus-are tax advantaged) over that time. Can everything be simply summed up as just the price change on any investment in one brief paragraph on evaluating an investment product? I doubt many equity or debt issues, whether income producing or not, did not experience a significant drop in and around 08. Doug Albo has written IMO an excellent series on these buy/write CEF's, favorably mentions ETW. Morningstar also much + to say (below)


    Last Price
    $
    11.88
    Day Change
    0.11 | 0.93 %

    As of Fri 12/06/2013 4:00 PM EST | USD

    Last Closing
    Share Price Day Range 52-WK Range 1-Year
    Z-Statistic Market
    Value Total Leverage
    Ratio
    11.77 11.77-11.90 10.61-12.06 0.53 1,253.5 mil 0.00 %
    Last Actual
    NAV Last Actual NAV
    Date Last Actual
    Disc/Prem 6-Month Avg
    Disc/Prem 3-Year Avg
    Disc/Prem Total Dist. Rate
    (Share Price)
    13.02 12/06/2013 -8.76 % -8.84 % -11.45 % 9.83 %
    As of 12/06/2013
    More...
    CEF Price
    ETW
    -
    Zoom: 1D 5D 1M 3M YTD 1Y 3Y 5Y 10Y Maximum

    XNYS:ETW:-0.10|-0.83%







    Premium Content
    Morningstar's Take
    ETW

    This fund has a good track record against its world-stock peers on a risk-adjusted basis. Absolute returns are strong over the five-year period, thanks in part to the fund's lower-than-average loss in 2008. As the market rebounded, the fund has struggled to keep pace, mostly due to the call strategy, which provides additional income for distributions but limits upside potential. Overall, performance has been decent and volatility of returns has been low. The fund also has a lower-than-average expense ratio. Finally, we appreciate the efforts Eaton Vance and its board have taken to narrow this fund's persistent discount (its discount narrowed a bit to 11% from over 14% since the actions were announced). Overall, ETW has earned a Morningstar Analyst Rating of Bronze.
    Dec 7 07:05 AM | Likes Like |Link to Comment
  • Gundlach: Time to buy interest rate risk [View news story]
    RS, with all due respect, and I enjoy your articles as a rule, if you think Gundlach as been "wrong basically forever", either you have some type of animosity towards him that prevents an appreciation of his long term bond record (see Barrons "The King of the Bonds" in 2011), or you have developed a profound case of being non-informed. Such a statement makes me very wary of your usual insightful dialogue..
    Nov 30 10:12 AM | 21 Likes Like |Link to Comment
  • The Wonderful Wizard Of O [View article]
    I always have thought Brad does an excellent job of his analyses in the equity reit area. However, IMO, I feel there has been little restraint on what entry price at which to purchase - it seems like no matter what the price of the reits favored, it is an acceptable time to buy. I have no doubts O is an excellent company, and, in fact, have owned the common in the past, and am currently a long time owner of the E and F preferreds. But, an investment fact of life is, that even with outstanding companies such as Realty Income, there are always worse and better entry prices to consider before jumping in. When O was at its all time high >50 earlier this year, I was surprised at the buy rec. at that point. I have also great respect for MT at Rubicon, and consider his input very highly-I think he puts forth a more consistently critical view of investment ideas, including the timing of a buy, which to me is always an extremely important factor. MT was right last year, and I suspect he is right again.
    Sep 5 06:47 AM | 4 Likes Like |Link to Comment
  • mREITs - Where From Here? [View article]
    Also very glad to see you back in the saddle at SA with your well thought out opinions, particularly in the fixed income area of investing such as reits, mreits, and particularlly the preferred issues of these and other equities.
    May 31 11:13 AM | Likes Like |Link to Comment
  • 9 New Preferred Stocks Provide Increased Principal Protection [View article]
    Boss,
    My experience with Scottrade has been the same, BUT you can place a buy order on these OTC trading new preferreds, you just have to go through the broker (thus a broker assisted fee) for a limit order at an entry price you are comfortable with. Another non-discount broker I use does not have this limitation, and I can bypass the broker in placing my order. The otc market is not predictable, is inefficient, and may seem irrational (buy orders may be filled at lower prices that your buy price) so your order may or may not be filled. Be patient and often will be filled if your order is above that current ask price. Do not use a market order-a risk of being seriously burned.
    Apr 16 06:33 AM | Likes Like |Link to Comment
COMMENTS STATS
46 Comments
53 Likes