Bought some more of this. Morningstar rates this Four Star. Yields 7.75% tax free. Has over 150 holdings. As long as Pioneer ok, MAV looks strong. Maybe has to pay out the 8 cents per month for a year to get back credibility. Comment please.
Fred...any hope they will ever raise the dividend again? see more reductions?
Before I bought, I looked at Mav dividend history and it showed past reductions followed by increases during past 10 years. Thx.
Arbata ( pronounced with a Roolllling R ) Arrrrrbata !
you are correct.
the top CA munis are pcq, pck and nzh.
the top national munis are pml, pmx and ktf or nev.
though i like nzf and nvg.
top taxable CEFs are pdi, dmo and then maybe pko and pcn.
if you like preferreds, then ffc and dfp and pfd
We shall see. I still think it's the BEST market traded municipal divi payer out there and that should account for a premium.
Seriously? Look at the history. I wouldn't be surprised to see this trade in the 13s. This was not panic selling, it was simply a fund adjusting to the reality of the new yield. With the significant premium that this fund carried, it deserved that type of sell off. This fund usually trades around a 7% yield. Would not be surprised to see it back there again, particularly since interest rates are expected to increase later this year. Wait until the distribution is paid and those shareholders that don't realize there was a divy cut yet start to digest the news...
I won't be surprised to see this back over $15 within a couple of months. Panic sellers caused a great opportunity to buy MAV here. Smart $$$ buying the panic. MAV will continue to give great monthly income over the long term.
Well, When Pioneer cut the div on PHT it came as a bit of a shock as PHT never had a div cut that I know of so I looked at other Pioneer CEF's and found that they cut the div on all of them except MAV.
I couldn't see how they could cut the div across the board without cutting MAV as well, it just didn't make sense. I've been looking to take a position in MAV for a while but resisted. I got in at 13.80 after the cut.
HNW Div cut from .16 to .135 in Nov 2014
MHI Div cut from .095 to .085 on 11-14
MHI Div cut from .085 to .070 on 05-05
PHD Div cut from .065 to .055 in Aug 2014
PHD Div RAISED from .055 to .060 on 05-05
PHT Div cut from .1375 to .115
MAV Div cut from .095 to .080 on 05-05
Which website is that Mike? I use cef-connect, but their info is usually outdated, and seems to come from the same source as morningstar.
I wrote a long reply on how to check (what website to go to ) on if a CEF is overearning its monthly distribution, or not ....and i see it was Removed/Deleted.
Are these really not Free Discussion message Boards ?
Are there people that don't like that i'm explaining on how to educate yourself on these CEFs ?
Are they preferring that we stay ignorant of this information ?
Now that I read up on it a little bit more...apparently here's the reason: "MAV’s May distribution of $0.0800 per share represents a 15.8% decrease from the $0.0950 per share distribution paid in April. The prolonged low interest-rate environment has reduced the yields of securities throughout the municipal bond market. As a result, the Funds’ maturing and callable higher yielding securities have been replaced with new securities with lower yields, reducing the Funds’ income. This change better aligns the Funds’ distribution rate with its current and projected level of earnings and reserves.
Don't you think this is short term panic though? I mean 6.5% approx. dividend that's federal tax free and paid monthly, I just don't see any other product out there that's comparable...a money market certainly isn't. I think $$$ will flow back in pretty quickly after the panic settles don't you think?
A sizable monthly distribution cut/ reduction announcement.
On May 5 pioneer announced that MAV will no longer be distributing $.095/share to shareholders, but rather, $.08/share.
The market will always react negatively to this kind of news/change.