It's my 11th year as well and never worry about it as DIV reinvestment takes care of lot of things along with accumulation of no# of shares
I feel the same after 12 years. I never have sold. I don't withdraw. The lower it goes the more shares your divvy will buy. Relax, it has NEVER failed me
I have had it for a long time as many others and still reinvest my dividends, but know they are there if I need them. It's heavy energy so my thought would be you got in at a good time, although long term it is up and down. The monthly divined also helps.
This is a dividend fund and not a growth fund. I've been in for close to 20 years and found it to be a $2.00 - 2.50 fund. II've seen a high of 2.80 and I've seen a low of 1.38. If you are in a position to reinvest your dividend you will accumulate a lot of share which will in turn give you more dividend each month.
pretty good long term performance-but this fund has energy and junk bonds in it--energy and junk bonds have been underperforming for months now--and unless oil comes back big this is going to languish--fortunetly it pays a nice dividend
I may not have the best understanding, but factors seem to be: 1-performance of main holdings (RDS A, GEC etc), 2- performance of markets overall, 3-lose 1c at start of every month for div payout. Note that many of the maijor holdings are energy related, so as oil has struggled of late, this has mirrored that.
I seem to remember in past years, it being quite a bit less volatile to daily movements (kind of: markets drop 2%, FKINX drops 1%) but in recent roller-coaster days, we had one day when it went -6c which reflected the full-on 3% market loss. I was then disappointed to see it only creep back up in the subsequent rebound days, at a slower rate than the indices and major holdings. That I can't explain.
Remember also it is seen by most as a dividend-bearing fund, rather than a capital growth fund.
I just got in about a month ago mainly for the dividends but I am concerned about the growth of this fund anyone out there that has had this fund for a while can tell me what affects this fund up or down so I can have a better idea what I have gotten into, should I stay in or get out
energy and jun bonds, and for awhile because of rate fears, utilities and other dividend paying stocks dropped. Anything that has an equity income base has been hit hard due to energy stocks,
I don't understand why this fund has been hammered the past year. I think they use this fund to prop up other funds. For example the closed end fund FT pays over 7.50 in dividends every month and the nav hasn't been hit nearly as hard.
I have also had this for a very long time and it's my largest single holding. Although I don't like seeing the value fall like this it's when I have made the most money. I still reinvest dividends and it buys a lot more at these prices.
perhaps some perspective. i have owned this fund for 15 years ( or so). in 2007 it reached $2.81. then it was crushed during the crisis and landed at 1.48. it slowly recovered to 2.59 a year ago. now it again has been chrushed but at a higher level.
my point this is a volatile fund that pays wonderful and consistent dividends. it cut dividend once during the crisis. to say it will never come back is too pessimistic imho.
it will recover once ( god knows when) the oil crisis abates.
it is my largest holding. i am more interested in dividends than capital appreciation . if you need the latter, this fund is not for you.
i got out of fkinx and 100% out of franklin templeton as the div is 010 now and fees to high and my broker whom got me in is upset because he is soon to sell his private business and is mad because he lost my account which makes his customer base a bit smaller to his buyer. I have been sittin on the sidelines since dec 2014 and also will go into ETFs with vanguard after the interest rate hike that may or may not happen.
It's the low interest rate and dividend stocks are hot so the price has been bid up and the yields are low. That is what the fund manager is having to deal with now. It is a lousy time to be an income investor, but it is what it is, we just have to deal with it.
g.ramz has a good point about this fund. It is an income fund. I looked at this fund about 10 years ago while researching funds to put in a Roth-IRA. The NAV then was around $2.50 a share. The NAV in 10 years from now will likely be around $2.50. But if you're re-investing your monthly dividend, then your share total will be what is higher. Let's say you own about 1000 shares. Each month it's dividend will work out to adding about 4 shares to your share amount. I didn't buy this fund back then, but I am buying it now in my 401k. If you want your NAV to double or triple in 10 years, buy a growth fund of some sort.
$200 per month buys fewer shares when prices are high, and more when share prices are low. The average share price is potentially lower than if you had invested sporadically and depended on market timing. Stay with this Income Fund