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  • Prospect Capital: Buy The Dip?  [View article]
    Wall Street, you are absolutely correct. However, Prospect Capital management works for Prospect Capital Management, not Prospect Capital. A serious buy back of shares reduces AUM, which in turn reduces income for PCM. That's simply a non-starter.

    When management interests are not aligned properly with company and shareholder interests, issues abound (pun intended).
    Dec 9, 2015. 06:43 PM | 8 Likes Like |Link to Comment
  • Income Investing And Tax Management For The Retired Household  [View article]
    This may be one reason you don't receive 1099-DIV statements until late February or March.......and, perhaps a reason you receive amended 1099-DIV statements as well. :)
    Nov 20, 2015. 11:02 AM | Likes Like |Link to Comment
  • Comparing The Option-Income CEFs From Eaton Vance  [View article]
    SG - I'm not seeing what you're seeing on CEF Connect. I see where ETV went monthly in 2013 and the divy went to .1108 from the quarterly .3323. It has remained at .1108 ever since.
    Oct 7, 2015. 11:37 PM | Likes Like |Link to Comment
  • Comparing The Option-Income CEFs From Eaton Vance  [View article]
    There were cuts back in the 2010-2011 time frame, but I don't believe there were any cuts in 2013. I think January 2013 was when many of these funds changed over from quarterly dividends to monthly. Is that what you are referring to?
    Oct 7, 2015. 01:03 PM | Likes Like |Link to Comment
  • Comparing The Option-Income CEFs From Eaton Vance  [View article]
    I own shares in several EV funds in my taxable account. The tax advantaged funds do extremely well, providing both income and relief when it comes to Form 1040. But, I want to say that EOS is not too bad either. Looking at my 1099-DIV statement for 2014, the vast majority of income received from EOS was classified as either long term capital gains or qualified dividends. If one is in the 15% tax bracket there is no tax to be paid on LTCG or QD. And, without ROC, the cost basis does not drop, so that future sales are not hit by higher capital gains.

    As always, with taxes, your mileage may vary.
    Oct 7, 2015. 10:45 AM | 2 Likes Like |Link to Comment
  • JPMorgan Chase declares $0.44 dividend  [View news story]
    The paydate is a Saturday?
    Sep 16, 2015. 07:17 PM | Likes Like |Link to Comment
  • Fidelity Equity Dividend Income: I'd Rather Own A CEF  [View article]
    Nuveen also has QQQX, DIAX, and SPXX which are closed-end buy/write indexed option income funds.

    QQQX is indexed to the NASDAQ. DIAX to the Dow 30. And, SPXX is indexed to the S&P 500 just like BXMX. The difference is in the percentage of the portfolio options are written on.

    These funds actually do have a track record as they were all created from mergers of older funds. But, unfortunately without a lot of digging it's hard to see.
    Aug 28, 2015. 01:15 PM | Likes Like |Link to Comment
  • How To Build An Early Retirement, Tax-Free Income Portfolio With Closed-End Funds  [View article]
    Regarding CEFs, 1099s, and taxes: The funds will report the distributions to the brokers, who in turn report it to you via the 1099. However, you can expect corrected 1099 forms later in the tax season. Sometimes, corrections to the corrections. Not that it should deter anyone, but don't expect to file until the last week before April 15th. For TY 2013, I even got a corrected form on April 18th, although it was a small change.

    Most of the covered call CEFs do not use leverage. Many of the bond, muni-bond, and preferred stock funds do use leverage. How much leverage varies by fund.

    If you look at the distribution tab on cef connect, you can see how each fund's distribution is divided up between income, LTCG, STCG, and ROC. Unfortunately, it does not show what percentage of the income was qualified. I have done very well with the Eaton Vance funds, EOS, ETV, ETY, EXG, ETW, and ETB. These are all covered call closed end stock funds. There has been very little in the way of non-qualified dividends from any of them. They all pay monthly, which many other funds have started to change to.

    Recently, I spoke to some friends about closed end funds, the yields, and the tax advantages. Although they were polite and didn't use the term, they all but called me a liar......or, failing that, they accused me of investing in something incredibly risky. There is no free lunch, it's true. Covered call funds are constantly capping their upside by selling calls. If the market becomes a raging bull, covered call funds will not keep pace. Always keep in mind why you invested in this type of investment.....income, not capital gains.

    One idea for your portfolio: have something like SPY for capital gains to go along with your income stream. When the market goes on a tear, sell some SPY to generate reinvestment cash. Bonds, preferreds, utilities, MLPs and so forth are not always correlated with the S&P 500. There may be bargains available. OTOH, when the S&P 500 is down, it may be time to buy more SPY from the dividends generated from the income funds.
    Aug 10, 2015. 11:01 PM | 3 Likes Like |Link to Comment
  • Prospect Capital: Reconciling Different Points Of View  [View article]
    Waiting for PSEC management to "unlock value" for you, the shareholder, is like 'waiting for Godot'. If and when it comes, it will be of dubious value. Meanwhile, other opportunities pass by.
    Jul 21, 2015. 05:57 PM | 3 Likes Like |Link to Comment
  • Should You Buy Prospect Capital Corporation? COO Grier Eliasek Gives Some Very Interesting Answers  [View article]
    craig, I believe you have unlocked the value of the current carrot being dangled before investors eyes. :)
    Jul 19, 2015. 03:49 PM | Likes Like |Link to Comment
  • Should You Buy Prospect Capital Corporation? COO Grier Eliasek Gives Some Very Interesting Answers  [View article]
    gm, I don't think anyone is faulting the PSEC management for their ability to grow the business. They have grown the business substantially. They have worked hard and, perhaps they should be commended for doing a wonderful job. They have greatly increased AUM and have been rewarded. If, by doing all of this the shareholders would have seen rising dividends and a rising stock price, I don't think there would be any furor over the fees. However, there's the rub. The dividends have not risen, but have suffered dramatic cuts twice. Every time management makes a move it always benefits management....sometimes it even benefits the shareholders. The problem is that it appears that the benefit to shareholders is an afterthought or an accident, not the foremost reason for the move. But, it always benefits management....always.

    PSEC management manages its shareholders with a carrot and stick philosophy. The deceptive lure of better things to come just around the corner for the shareholder is put forth, while management lines its pockets every chance it gets. The game has gotten old. The shareholders are now aware of how the game has been played and they aren't happy. Management is still desperately trying to play the game, but the shareholders aren't cooperating. Management needs to get off their collective high horse, lose a little arrogance, do what is right for the shareholders and the business for a change. Will that happen? Is current management capable of doing that? I have my doubts.

    The beat goes on.
    Jul 15, 2015. 09:27 PM | 8 Likes Like |Link to Comment
  • Zweig Fund - Solid Equity Fund Available At A Discount  [View article]
    I first bought ZF back in the 2009/2010 time frame. I added to my position over time during price dips. It sits over in the quiet corner of the portfolio where it gradually increases in price and spits out dividends every quarter. I've made about 10% in capital gains (over and above total purchase price), more if you consider cost basis which has dropped due to occasional ROC. In addition, the total dividends received equates to roughly 33% of purchase price.

    It's kind of a 'no muss, no fuss, and no drama' type of investment. Small wonder that it doesn't get much press here on SA. :)
    Jul 6, 2015. 10:33 PM | Likes Like |Link to Comment
  • Prospect Capital: Heads Managers Win, Tails Managers Win  [View article]
    RG, you have a much greater faith in current PSEC management than I have.
    Jun 18, 2015. 01:52 PM | 1 Like Like |Link to Comment
  • Prospect Capital: Heads Managers Win, Tails Managers Win  [View article]
    RG.....ask yourself this: with all of the growth of assets under management, has the individual shareholder benefited? Have the dividends risen? How about the share price? Faith and trust in management?

    Other than as a trading vehicle, PSEC has not benefited the shareholder as it should have. But, management.....that's another story.

    Actually, the best thing would be if we (retail investors) could invest in the PSEC management company. Then (and only then) would shareholder's and management's interest be in sync.

    But, wait.....that's sort of like an internally managed BDC....hmmmm.

    Jun 17, 2015. 11:53 PM | 4 Likes Like |Link to Comment
  • Prospect Capital - Lies, Distortions And The Truth  [View article]
    PSEC has become a battleground stock.....no matter which side of the fence you are on, articles flow forth on all manner of opinion. As a retired individual seeking consistent income, I owned a good bit of PSEC, but have recently sold. The reasoning came down to this: if I did not already have it in my portfolio, would I initiate a position? The answer for me was 'no'.....or as they say here in NC..'hail no'. The other half of the reasoning was that there are plenty of other income producing securities that don't have falling prices and questionable management. They also don't seem to generate a plethora of articles attacking or defending the company and its management, basically because there is no need.

    While reading PSEC articles here on SA is entertaining and somewhat enlightening, that is not a good reason to invest in it. Prospect Capital may very well get things turned around and the price and dividend will rebound.....it's just that I don't give current management a snowball's chance in Hades of accomplishing that task.

    Jun 10, 2015. 07:21 PM | 5 Likes Like |Link to Comment