Evaluating CEFs: NAV Erosion Is A Bit Of A Concern For BIT


  • The 8% yield of BIT looks very attractive if the distribution can be maintained.
  • I continue my series digging into CEFs beyond the yield with a look at BIT.
  • NAV has been on a slow decline since the fund's inception.
  • I think BIT's distribution is just a bit larger than it can support.
  • Looking for a helping hand in the market? Members of High Dividend Opportunities get exclusive ideas and guidance to navigate any climate. Learn More »

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Investment Thesis

This article will take a look at BlackRock Multi-Sector Income Trust (NYSE:BIT). BlackRock is a great manager of Closed-End Funds and I have liked several of their funds. So I turned to BIT expecting to like it too. With

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This article was written by

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The #1 Service for Income Investors and Retirees, +9% dividend yield.

Beginning on October of 2018 I began working with Rida Morwa and his team at HDO. I both write articles in collaboration with the HDO team and on my own. Contributing authors, if any, will be listed after the bullet points at the start of articles.

My profile picture is an actual picture of me and 4 of my siblings from 1971. I am 9, and the one in the greenish shirt saluting (to keep the sun out of my eyes). My siblings are 8 (brother at far right), 7 (blond sister), 6 (sister in the red shirt) and 3. My grandfather is holding my youngest brother. In this picture, my grandfather is about 4 years older than I currently am.

I have been a software engineer developing applications in various fields for over 30 years. I began investing in mutual funds for my 401(k) back in 1988.I started investing outside of my retirement account a little over 17 years ago. I used to follow a value oriented strategy, but after I saw how that worked less well than I liked during the financial crisis, I began to switch over to a more income based approach.

I had always thought that dividends were important but didn't have a systematic way to evaluate stocks that paid them until I found SA and DGI. Starting around 2010, I have switched my portfolio to a DGI strategy.
One of my most profitable picks turned out to be Freddie Mac, which I originally chose because I liked the dividend and because I once worked there. When it first ran into problems I increased my holdings because it still looked like a good value to me. I eventually managed to buy several thousand shares at a cost of $0.50 (I knew that was a good value) and eventually exited the stock at a price that was $5 a share above my average share cost.
My biggest miss was when I sold out my 100 shares of Apple shortly after Steve Jobs returned but before he had done much to improve the companies outlook. You can see my holdings here :


I am currently contributing articles to Rida Morwa's service High Dividend Opportunities.

Disclosure: I/we have a beneficial long position in the shares of PCI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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