I am only guessing but believe there will not be a dividend cut for the next 3 months. The rising market is lifting the NAV even with large payouts. If things hold and firm a dividend cut while likely this year should be smaller and sustainable. I still think we will be at .10 per month by year end and I can live with that( and hope to for several years) Any thoughts? GLTA.
AOD looks ok but would never pay a
a premium to NAV to this type of
fund. AOD is priced at a 10% premium.
There are many good funds selling
at a good discount to NAV.
see ETFCONNECT FOR SCREENS
Thanks - Nuveen looks good and they seem to be a well-regarded CEF company, particularly for bonds. Right now I've got some Nuveen, BlackRock, Pioneer, Evergreen, Eaton Vance, and Alpine funds, and one Nicolas Applegate; it'a a mixture of stock and bond funds.
Eaton Vance and Nuveen both won awards at that CEF/ETF conference I went to last week. BlackRock won an award at a conference I went to in the fall (for "best wealth management.")
I think the main thing I have to keep my eye on with CEF's is any potential NAV erosion if they over-distribute and include any return of capital. Maybe I'm wrong, but I anticipate this to be less of a concern with the bond funds than with equities.
Remember in another post we were discussing that proposed merger of BWC and BFD into BOE. I saw an article that says so far it has not happened due to lack of shareholder votes - they will try to get more votes and reconvene in early June.
I like some of nuveens cefs. Very low leverage and double digit yields. The preferred funds are weighted A-. Unfortunately some now sell at a premium but the funds have room to double from here. Check out jrs,jpc, jtp, jps, jhp. Right now JPC with leverage coverage of 354% as opposed to the 200% required, a 12.5% yield and a 20% discount looks interesting. Average credit quality of BBB-. If things hold together then the income is secure and the NAV will rise.
no need to discuss divy cuts for aod at this time ...its a moot point divy will hold at .12 as long as nav and market dont tank back to BELOW march lows.... aod's nav however has not recovered off the lows like some other cef's i own. the divy will be increased from .12 at some point where the nav is above 12...so we have a ways to go....in the mean time sit back and enjoy a 20% yield! if we just stay flat in nav and share price WE WIN!
I'm happy with my CEF's - they've gone up, some substantially, and pay a good income -I have moved most of my portfolio into 18 different CEF's since that low point in March. I think I may just keep things like this for the income.
I'd be interested in some opinions as to whether others think this is a safe strategy going forward.
I doubt they will cut the dividend this May. If market conditions deteriorate they may cut later on, but probably not below .10. I don't think that will happen though - based on what we've seen with the price of this and other CEF's lately, the bulls may be getting ready to run.