at the end of every month, i take a look at the performance of various CEF's that i own, might own, and owned. in some cases, they are in invested in different asset classes (debt instead of equity). i like to see if debt is doing better than equity, etc... debt has done quite well over the last six months. (i recently compared charts for the NAV of BWC, AOD, DHF, ETO, MGD, and AVK, using X before and after the symbol).
AOD had been a leader in the equity category for most of this year but it seems like AOD (or XAODX) is starting to lag again. YTD, XAODX is off about 13% versus a reduction of roughly 3% on XBWCX and SPY. BWC's yield is pretty close to AOD's so as of now, you've been better off owning BWC this year.
i noticed that XLP (consumer staples) has lagged the SPY's over the last month or so. i'm thinking that AOD's move into that sector (pep, cl, etc..) may be what held it back recently. of course these same stocks are most likely what made it perform better earlier in the year (compared to the SPY). it is a little early to know whether holding these stocks now is good or bad. good if the market goes down, not so good if the market goes up.
disclosure: as i've noted a few times, i sold half my AOD before year end and the other half just after year end (took a loss). i bought BWC and SPY with the proceeds from the sales.
i was looking at the NAV for AOD. that won't reflect moves to capture the div like the share price will. it is hard to figure out anything by looking at AOD's share price. one week it is at a premium, the next it is at a discount, etc......
I too am looking for a dividend cut but believe it will be about .02 rather than .04. If the Nav can rise to above 7 by year end then a 1.2 div would be in the high range of possible and possibly sustainable. The good news is I think the worst case is a .04 cut is probably as bad as it will get as this would be a 13.7% yield on a 7 dollar nav. JMHO. Good luck to all.
I looked at BWC, which looked good, but I don't like the fact that the board has approved its merger with BFD into BOE, with BOE being the only surviving fund, subject to shareholder approval. Too many things up in the air - I'm afraid buyers of BWC may start getting out early, causing the share price to drop, or the merger may prove costly. I'm waiting to see what happens before buying any of them.
The yield on BWCs NAV is 13.95. The yield on AODs NAV is 23.65. I would not worry about BWC. I think the yield is sustainable and the merger should'nt effect BWC's dividend unlike BFD's dividend which will most likely be reduced to fall in line with the other two funds. Now who was the guy touting BFD a few months ago?