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drdata

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  • Comparing 2 Monthly Income Closed End Funds [View article]
    In general, I am in full agreement with the author. However, EOS is also pretty good in a taxable account as well. Last year, almost all distributions were a combination of qualified dividends and long term capital gains. There was a fragment of non-qualified dividends as well. But, not much.
    Apr 7, 2015. 03:43 PM | 3 Likes Like |Link to Comment
  • Beware Of Convertible Bond Funds [View article]
    The current NAV for NCV is still above where it was at the end of 2011/beginning of 2012 when it reversed course and climbed higher. So, is its current NAV a concern.....yes. But, on the other hand it paid the same distribution right through that low point in 2011, and continues to pay now. Check out the distribution history of NCV on Nasdaq.com. It's really boring. Month after month it pays the same amount.....through up markets and down.

    The thing with investing in any security is that in order to get it at a cheap price, there needs to be a reason for market rejection. You, the investor, need to see value even when the market does not. With the current fearful interest rate environment (omg, the Fed's gonna raise the rate), any bond fund is going to experience price/NAV difficulties. But remember, bonds still pay their coupon rate regardless of current rates. All bonds mature. As they mature, their NAV rises as they approach redemption date. Once redeemed, the fund manager can reinvest in the now higher interest rate environment.....should that come to pass. Coupon rate, maturity, and quality ratings do not change just because the Fed raises the interest rate.

    I believe what we are seeing in bonds is some pricing in of a Fed rate raise. If and When the Fed does raise rates, there will be further drops. I'm keeping some dry powder ready because it will be time to sort through the bargain rack.
    Apr 7, 2015. 01:31 PM | 2 Likes Like |Link to Comment
  • Comparing 2 Monthly Income Closed End Funds [View article]
    Eaton Vance has an excellent article on their website which explains ROC in detail. You might want to read it to get a better understanding of this little understood concept.
    Apr 7, 2015. 12:16 PM | 4 Likes Like |Link to Comment
  • Comparing 2 Monthly Income Closed End Funds [View article]
    Several EV funds switched to monthly distributions in January 2013. I own several of them. Their monthly distributions dropped to exactly 1/3 of their previous quarterly distributions. Could you explain what you mean by significant payout cuts?
    Apr 7, 2015. 12:13 PM | 7 Likes Like |Link to Comment
  • Investing In High Dividend Yield Stocks: A Sucker Bet? [View article]
    The investment does not need to be held for over a year in order for the dividend to be qualified.

    You are thinking of long term capital gains vs. short term.
    Mar 24, 2015. 07:39 PM | 7 Likes Like |Link to Comment
  • Beware Of Convertible Bond Funds [View article]
    NCV and NCZ have been trading at a premium for over 5 years.....and, even before that as well. Once in a while they slip to a discount....not often and not for long. They pay too well, and they pay much too consistently to linger in the market discount rack. I have come to terms with this and purchase whenever the price is down, regardless of exact premium. To me they are just cash cows that pay every month and enable me to have money available for investment purposes when the market drops for some reason. I don't really even consider them for capital gains.
    Feb 22, 2015. 11:24 PM | 6 Likes Like |Link to Comment
  • Is It Time To Dump JPMorgan Stock? [View article]
    'We make money the old fashioned way' was Smith-Barney, I believe.

    EF Hutton was something about 'When EF Hutton talks, people listen.'

    Not trying to invalidate your comment, just trying to remember the commercials......how quickly forgotten. :)
    Feb 21, 2015. 11:02 PM | 1 Like Like |Link to Comment
  • 'Income Growth' Vs. 'Dividend Growth' - The Re-Match [View article]
    So.....SG, you plan on hiring people to help you die? :)
    Feb 10, 2015. 03:41 PM | 1 Like Like |Link to Comment
  • 'Income Growth' Vs. 'Dividend Growth' - The Re-Match [View article]
    I am with you 100% on this concept, Stephen. My portfolio of CEFs may be different than yours, but they are doing the same thing.....cranking out oversized dividends for reinvestment purposes. The dividends replenish my cash position so that I am prepared to take advantage of the next market dip. Before locking into this strategy, I was always faced with a decision about where to find the resources to take advantage of the prices Mr. Market was offering. It was always a case of selling low to buy low. Not any more.

    That's not to say I don't appreciate a DG strategy. I see no reason you can't do both. In fact, the high yielders can provide the extra firepower to help you buy DG stocks more often. The two strategies can be made to complement each other.
    Feb 5, 2015. 07:32 PM | 12 Likes Like |Link to Comment
  • Equity CEFs: Buy Alert On ETY [View instapost]
    Thanks Doug. Picked some up below 11.00.
    Jan 14, 2015. 04:13 PM | Likes Like |Link to Comment
  • Beware Reversion In YieldShares High Income ETF And ETRACS 2x Closed-End Fund ETN [View article]
    In an IRA, ROC has no impact. ROC lowers the cost basis, which in a non-qualified account would affect capital gains when sold. In an IRA, capital gains and/or losses have no effect, so ROC has no bearing.
    Jan 6, 2015. 06:33 PM | 1 Like Like |Link to Comment
  • Retirees, This Is Not Your Father's Retirement Plan: Constructing The 2015 Fill-The-Gap Portfolio [View article]
    Bonds lack the liquidity of bond funds. Bond funds will regain value as their holdings near maturity. When their holdings mature, the fund can reinvest the principle in higher coupon bonds (assuming a rising rate environment). When rates rise the value of existing bonds goes down, regardless of who owns them. Looking at the value of individual bonds in your portfolio gives one a false sense of security. The price shown is the last traded price for that issue.......when could have been months or even years ago. It may not properly reflect the current value at all. And, as far as getting your principle back on an individual bond......probable, but certainly not guaranteed.

    I have nothing against holding individual bonds. I've done it myself. But, in order to do it properly, you must invest in quite a large number to achieve diversification. By doing so, you will have for all practical purposes, created your own bond fund. I ended up selling my individual bonds because I did not have the desire to manage that portion of my portfolio. Your mileage may vary.
    Dec 26, 2014. 08:43 AM | Likes Like |Link to Comment
  • Update: My Reaction To Annaly Capital's Dividend Announcement [View article]
    If it gets back to your entry price, you will have made quite a bit on the dividends. It will have done exactly what you should have expected. So, you will sell at that point because ??? Because it happened to go down in price between the time you bought it and the time you sold it. How dare it do that?
    Dec 21, 2014. 10:09 AM | 5 Likes Like |Link to Comment
  • Eaton Vance Tax-Managed Global Diversified Equity Income Fund declares $0.0813 distribution [View news story]
    It would have been more beneficial to have received this post earlier in the month. Having it arrive on the dividend pay date is not very helpful.
    Nov 28, 2014. 12:07 PM | 2 Likes Like |Link to Comment
  • A 7.3% Income Stream You Likely Haven't Considered [View article]
    Preferred shares are NOT equity. They do not show up in the equity portion of the balance sheet. Owners do not have voting rights. They do, however, show in the liability section. They are subordinate to bonds. They are usually rated a bit lower than bonds issued by the same company for this reason. Look at it this way....they wouldn't have a "par value" if they were equity.

    That being said, JPS and its brother JPC are well managed preferred share funds. I own shares of each. They are steady income producers. I did not, and would not buy them for capital appreciation. They are interest rate driven, like bonds. Both JPS and JPC fell in price in 2013 during the "taper tantrum". They will do so again when interest rates rise. Depending on the situation at the time, such an event may present the investor with a buying opportunity.
    Nov 6, 2014. 05:22 PM | 7 Likes Like |Link to Comment
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