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drdata

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  • Zero Leverage, High Yield, Cost Efficiency, And Diversification Does Not Make Up For Returning Capital [View article]
    Just a minor correction: short term capital gains are those things held for a year or less; long term gains must be held for more than a year.
    Apr 3 12:42 PM | Likes Like |Link to Comment
  • Zero Leverage, High Yield, Cost Efficiency, And Diversification Does Not Make Up For Returning Capital [View article]
    Doug Albo has written a number of articles here on SA which highlight and help explain the return of capital issue. Here is a link to one I think might be helpful: http://seekingalpha.co...

    The return of capital portion of the distribution is not taxable. It will, however, lower your cost basis. If/when you sell it, you will have higher capital gains or less in the way of loss than you normally would have. But, you control that aspect.
    Apr 2 11:37 PM | Likes Like |Link to Comment
  • Zero Leverage, High Yield, Cost Efficiency, And Diversification Does Not Make Up For Returning Capital [View article]
    Betalyst, you need to read up on buy-write/option income funds and how they work. You are sounding an alarm when none is needed. Option income funds are supposed to have ROC (or, failing that, LT capital gains). That is their attraction. That is how they are tax advantaged. By you article, NAV should be sinking like a stone. Looking at their chart on cefconnect, that is clearly not the case. It appears to me that NFJ is working exactly like it should.
    Apr 2 02:25 PM | 3 Likes Like |Link to Comment
  • Selecting The Best Emerging Market Bond Funds [View article]
    I am a fan of EHI as well.
    Mar 15 12:43 PM | Likes Like |Link to Comment
  • Are High-Yield Equities Riskier Than Dividend Growth Stocks? [View article]
    High yielders, both bond and equity, may be used to replenish cash more quickly. In turn, the cash flow may then be used to purchase dividend growth. I favor a combined strategy of high yield and growth, but it is not always easy stay disciplined. When high yield gets thrown in the bargain bin, it is hard to resist.

    Last year, in addition to the REITS, bonds and bond funds dropped as well. There were many choice selections for income hunters in the bond universe.

    Feb 26 10:38 AM | 3 Likes Like |Link to Comment
  • Reduce (Or Even Eliminate) Those Pesky Taxes On Mortgage REIT Dividends [View article]
    Short term capital gains are taxed as ordinary income. You need to hold the stock (and collect the dividends if applicable) for over a year to get the long term gains rate. This may be a decent strategy for swing trading, but it does not save on taxes.
    Feb 14 10:07 PM | 4 Likes Like |Link to Comment
  • CEF Strategies: The Sad State Of Municipal Bond CEFs [View article]
    Doug, just wondered what you might think of EXD. It is an Eaton Vance option income muni bond fund. Currently, (12/26), priced just over $14 per share, and yielding over 12%. Thanks.
    Dec 26 10:55 AM | Likes Like |Link to Comment
  • CEF Premiums: Getting All The Risk, But Only Some Of The Reward [View article]
    Recently, a friend asked about PHK. I said that I liked the distribution, but did not like paying such a high premium. In fairness, we looked it up on cefconnect. When we looked at the distributions tab, and clicked on distribution history since inception, we had an "aha" moment. PHK has paid its monthly distribution of .1219 for-freakin-ever. No cutbacks.

    Whether that is worth something to you all depends on your situation. But, at that moment I realized why it has stayed at a premium.
    Dec 25 12:14 PM | 1 Like Like |Link to Comment
  • 12 High-Yield Managed Distribution Policy Funds [View article]
    Does the author not realize that many of the funds listed are buy-write option income funds? Leaving out that little piece of information makes this article highly misleading.
    Dec 17 10:34 AM | Likes Like |Link to Comment
  • Assessing Covered Call Closed-End Funds To Enhance Retirement Income [View article]
    The very nature of B/W Option income funds will prevent them from regaining lost value quickly. By writing Call Options on their holdings, they essentially cap their potential capital gains.....just as you would do if you were writing covered calls on your own stock holdings. There's no magic here. These funds essentially trade capital gains for income. As such, they actually do better in a sideways market.

    If you are interested in capital gains, these funds are not for you. If you are interested in tax-advantaged income, then these funds can be truly great. But, be aware, it's tough to have it all.
    Dec 14 12:36 PM | 1 Like Like |Link to Comment
  • Assessing Covered Call Closed-End Funds To Enhance Retirement Income [View article]
    BOE invests primarily in stock of foreign companies, mainly European. It is not unusual for such investments to have struggled 2009-2012. Eaton Vance funds, EXG and ETY, also struggled for similar reasons. BR chose to delay cutting the dividend for BOE, which ultimately hurt the fund.
    Dec 14 12:06 PM | Likes Like |Link to Comment
  • Assessing Covered Call Closed-End Funds To Enhance Retirement Income [View article]
    I never offered assurance of distribution reliability. You are deliberately misinterpreting and trying to mislead, not me.
    Dec 14 12:01 PM | Likes Like |Link to Comment
  • CEF Weekly Review: Cornerstone Strategic Value Fund [View article]
    Adam,

    Not to disagree with you, but I thought ROC could not take your tax basis below zero. It was my understanding that once you hit zero, the distributions became taxable. Can you shed any light on this? Thanks in advance.
    Dec 9 06:07 PM | Likes Like |Link to Comment
  • Assessing Covered Call Closed-End Funds To Enhance Retirement Income [View article]
    Buy-Write CEF's are owned for income, not capital gains. The fact that the market undervalued them compared to their NAV back in 2008 was an opportunity, not a cause for despair. There were plenty of reasons for despair in 2008, but that was not one of them. I, for one, am willing to take advantage of the market's inefficiencies which appear quite often with CEF's. 'Follow the NAV' should be your CEF motto.
    Dec 7 11:05 AM | Likes Like |Link to Comment
  • Getting Crushed In mREITs? This Stock Is Outperforming Annaly And American Capital [View article]
    I am long WMC and plan to stay that way. The other mREIT that has performed well so far for me is NYMT. Those two have held up better than CYS, IVR, or MTGE.
    Dec 4 06:30 PM | 1 Like Like |Link to Comment
COMMENTS STATS
91 Comments
140 Likes