It's at 15.02 here on Dec 12, 2014. oh you wrote that for end of 2013.
It's earning the same as mhi now. .083 and still distributing .095
I'd prefer MHI at the current prices ( for mhi and mav
I have a bunch of MAV & MVF shares. My portfolio value dropped $14,000. yesterday. MVF did lower the next div. by .003, but MAV did not change their next distribution. There have been warnings about Muni CEF's holding Tobacco Tax Bonds as well as Puerto Rico Bonds. I did a quick check of their portfolios and neither show any of these issues are held.
They do fluctuate quite a lot based on rate moves. Look at their 25 year charts and you will see it there. I own for the income, nearly 8% for me based on my cost.. I still have a decent profit position in both of these. I use all of the monthly, transferring it out as soon as it is deposited. If anyone else watching here hears of the reason for the crash, let us hear from you. I see no reason for panic, though it is discouraging to see the dist. drop probably due to the portfolio mgr. making some changes.
It has a consistent yield of .095/mo, near 8% at current SP; but it has not increased in quite awhile. There was perhaps a bit of premium in the SP because it was raising the divvy prior to 2012. From a tax perspective especially, it may be smart to sell and buy back later. Tax on capgain but not on yield plus very unlikely to go back up now but may fall further, on technicals.
No news that I see; but went down on large volume. Perhaps on rumor or institutions? Perhaps we will find out in the next day or so? I am in no hurry to buy; with the large down volume recovery anytime soon is unlikely. More likely is a continued slump untill the news, if any, is known. Looking at the chart, it is due for a big fall.
Well as a retiree who lost a major part of his savings in 401k during 2007-2008, I am very cautious – maybe over cautious. Rates may not rise very soon if I listen to Ben Bernanke, but again there is no guarantee that he or his follower doesn’t change the policy if they see it as required. So I need to be alert. Hedging through ETF which short treasuries is a good idea. I will consider to start buying TBT and add to my position overtime. Taxing of dividends from municipal bonds would reduce the income of many retirees who have already lost a portion of their savings. I can only hope that they don't mess with munis.
I don't think rising interest rates should be of too much concern anytime soon with the Fed making it clear they will continue to do what they can to keep rates down. To protect against rising rates I have hedged by buying a little of an ETF which shorts treasuries and goes up when rates go up. The danger to the price of MAV and other Muni ETF's is the talk of reducing the tax exemption fo Mun's. The odds of this are about 30% according to most analysts of some reduction being passed in the future. I'm willing to bet against any major reduction being passed for now.
I have both MAV and MHI since 2011 when their prices were around $13. Since then I added to my positions when the prices dropped sharply. The tax fee dividend was a good portion of my income and the principal has gown over 10%. But now, I am getting concerned about upcoming rising rates.
MAV has been a good fund for me also but you need to take a closer look at the financials. For the last year MAV's NII has averaged .078 versus a dividend of .095. That has not been too much cause for concern since MAV had a large reserve of undistributed net investment income. However that reserve has gone from .68 to .389 to .279 as of their last financial report. You might want to lighten up on MAV and consider buying some MHI which is covering its dividend. As good as MAV has been, things change and the financials don't lie. If the current trend continues look for MAV to reduce its dividend to .08 or .078 just after its next financial report.
As I expected the Tax exemption for muni interest remains safe for 2013. Now with the higher tax rates MAV is a great buy even in the high 15's. In my experience and as one of my advisors in a recent article stated it sometimes does no good to look at lengthy analysis of fundamental issues when at the end of the day it is about whats going on in the market and what the market is saying. The market has been saying high yield muni ETFs like MAV still has legs in this perfect storm for Munis.
MAV closes the year above $15 as I expected and will continue to trade above $15 in 2013. There will be temporary dips to $14 when talk of amending the tax benefits of Muni's scare investors but we could also see a spke above $16 when these fears are resolved. My other Muni investments have done well over the years but MAV has been my best high yield Muni investment.
Sentiment: Strong Buy
Comparison of MAV's 2011 and 2012 Semi-annual report...
CATEGORY 1: NET INCOME PER SHARE AFTER PAYMENT TO PREFERRED SHAREHOLDERS (i.e., dividends available to pay to common shareholders):
10,997,891 – 242,936
---------------------------- = 0.4607 / 6 = .0768 per month
23,345,818 shares out
13,974,264 – 231,184
---------------------------- = 0.5923 / 6 = .0987 per month
23,204,288 shares out
Result: Very Negative: 22.2% decrease.
CATEGORY 2: UNDISTRIBUTED NET INVESTMENT INCOME (UNII)
(i.e., ability to maintain a stable dividend):
-------------- = .280
-------------- = .663
Result: Negative: 58% decrease.
CATEGORY 3: CHANGE IN OVERALL OPERATING EXPENSES EXCLUDING MANAGEMENT FEES (i.e., Efficiency by which the fund is run to maximize income for common shareholders independent of fund assets):
1,946,858 – 1,382,372 = 564,486
1,883,324 – 1,297,821 = 585,503
Percent change in 2012 from 2011: -3.6%
CATEGORY 4: QUALITY DISTRIBUTION (i.e., Relative risk of the portfolio)
Investment Grade: 47.3%
Below Investment Grade: 52.7%
Investment Grade: 54.1%
Below Investment Grade: 42.8%
Result: Negative. Lower quality and lower income
CATEGORY 5: LEVERAGE, AMT, DURATION
2011 vs 2012...
LEVERAGE: 33.3% vs 32%, neutral
AMT: 19% vs ?
DURATION: 7.9 yrs 9.5, negative
Where did you get your income figures? I am looking at the semi annual report for Pioneer Municipal High Income Advantage Trust September 30, 2012. Net investment income is $10,997,891, not 12,944,749 as you show above. The correct math is $10,997,891 - $242,936 = $10,754,955/23,345,818 = .460680.
Divide .460680 by 6 months = .076780 which is almost .02 below the current dividend. It appears to be only a matter of time before MAV reduced its dividend to .08 or .078.