- We extended our promotion over the holiday weekend, but this is the last call and the promotion is ending on Wednesday, January 6.
- Let's start 2021 right with our focus on sustainable income.
- Despite the pandemic, our income grew in 2020 - without adding capital or stretching for yield.
Our membership is exceptionally popular because we help you:
- (1) Identify the most profitable CEF and ETF opportunities.
- (2) Earn a ~8% dividend yield together with capital appreciation.
- (3) Avoid the overpriced funds that can sink your portfolio.
For more information about our Biggest Sale of the Year, click here.
Start 2021 right - a focus on sustainable income
Start 2021 right with a focus on sustainable income! Despite the pandemic, our closed-end fund model portfolios have grown their incomes in 2020, without adding new capital or stretching for yield.
Our focus on sustainable income and not chasing yield is what has allowed our portfolios to (1) grow their total return value, (2) avoid overpriced funds, and (3) side-step unexpected distribution cuts, which are frequently accompanied by significant drops in the share price causing both income and capital losses to investors.
Here are just two examples from the last year:
Tortoise Energy Independence Fund (NDP):
The third biggest loser in premium was Tortoise Energy Independence Fund (NDP), which lost -5.79% in premium last week. The catalyst was the massive -77% distribution cut, from $0.4375 to $0.10 per share, which we predicted in our Weekly Roundup two weeks ago:
Price action of NDP after the distribution cut. Note the price falling much more than the NAV over this time period, indicative of a collapsing premium.
The Stone Harbor Emerging Markets Income Fund (EDF) and Stone Harbor Emerging Markets Total Income Fund (EDI):
This article was released to our members during market hours on April 22 warning them to sidestep the announcement (or short) the funds in anticipation of a possible cut. After the market closed, EDF announced a -53% reduction in distribution, from $0.17 to $0.08 per month, while EDI announced a -47% reduction in distribution, going from $0.1511 to $0.08 per month.
Price action of EDF and EDI after the distribution cut. Note the price falling much more than the NAV over this time period, indicative of a collapsing premium.
Current portfolio yields
These are our current portfolio yields:
- Income Generator portfolio: 8.10% yield
- Tactical Income portfolio: 7.55% yield
- Taxable Income portfolio: 5.79% yield (with a focus on tax-free/tax-advantaged income)
Note that the above yields are with all three portfolios having between 6-8% in cash, ready to take advantage of opportunities when they arise.
Tired of seeing distribution cuts in your CEF portfolio? Try us out to see what our newsletter can do for you.
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CEF/ETF Income Laboratory: Profitable CEF and ETF Income and Arbitrage Ideas
Whether you're a novice or experienced closed-end fund ("CEF") and exchange-traded fund ("ETF") investor, the "Income Lab" is the right place for you. Our goal is to help you benefit from income and arbitrage strategies in CEFs and ETFs, all without having to be an expert, because we do the heavy lifting for you. If that sounds like something you'd be interested in, we hope you'll consider joining us here at CEF/ETF Income Laboratory.
We would love for you to join us. We are sure that you will enjoy our service and benefit from what we have to offer!
Stanford Chemist, Nick Ackerman, Alpha Male, Juan de la Hoz and Dividend Seeker
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.