Cohen & Steers REIT & Preferred Income Fund Inc. Message Board
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...Yahoo says RNP annual.....
...Dividend is $2.02 for a 15% yield! Do they know something we do not?
...Cohen and Steers are doing a great job...see CNS price of late!-
Actually, if you go to their website, it indicates a distribution of 6.6%. However, I have learned the hard way that this does not = dividend on most of these closed end funds. If you read the fine print it indicates this payout may be partly a return of capital, which means they are giving you your money right back after they skim the 2%-3% fees they charge. I learned the hard way with BTO. They are simply taking your money investing in the same things you can and charging you to do it! You would be better off simply buying their stocks, taking the dividends and avoiding the management fees. I own mostly stocks or ETF's that pay dividends and small or no fees. I happen to own this one as another mistake. Won't make it again!!
- 4 Replies to CajunTrader
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Wow, if you would have taken Cajun's advice last summer, you would have forfeited a 35 % gain in 3 months--$13.50 by Oct. 1st vs. $10 last June.
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<...You would be better off simply buying their stocks, taking the dividends and avoiding the management fees>
Not really because the assets are leveraged. They borrow at <3% and invest in yield twice that producing more income than individual REITs/pfs can produce. The fee for diversity,expertese, and leverage is about 1.7% -
Your rate of return depends on what you paid for your shares. Current dividend is approximately 6.6%. My dividend is about 7.6% because I bought my shares below $10.50 ($.80 divided by $10.50 equals 7.6%.) If you do the math, you'll see I have a 14%-15% gain on my investment. For anyone interested in buying, wait for a dip to maximize your "personal" dividend. You can also trade to increase your return. I will sell some above $12 and buy back in the next dip below $11. In the current uncertainty and with Obama ready to attack individual companies, I like the diversity of RNP vs. owning the individual holdings. Cajun Trader's idea of buying a basket of RNP holdings would be even better. Need to do your homework, though, if you are not paying RNP to do it.
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Thanks for helping me decide whether to buy this thing. I think I'll take a pass.
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This is a miscalculation. In reality they pay about 3%. Check the numbers
- 2 Replies to rruhlmd
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I think it is closer to 7%. They have been paying quarterly dividends of 20 a share. That's 80 cents a year. Share price is around $11 right now.
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Always cross check Yahoo's figures with another source. They are handy and great for screening, but they can be wrong for various reasons.
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Actually, we know something they don't know. We know they're wrong.
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