My understanding is that I am getting roughly 62% of a 7.88% return on IGR at a market price of $6.86. Roughly 4.5% does not seem to be a bad return, at the moment. The rest is return of capital. In addition, I own a portfolio of a real asset which is very under valued, in this almost deflationary environment.Consequently, if governments should reflate in their traditional manner, by printing money, that long term these real estate assets should appreciate. Finally, the portfolio is discounted to net asset value by about 20% First of all: 1. Is my understanding as described above fairly accurate? 2. Given the present environment, what are your opinions of this holding?
I've held this now for over 2 years and haven't seen any broker statement showing a return of capital. Either they are not providing the information to the brokers correctly or there really isn't any ROC. The dividend is all ordinary and yields 7% at current pps.
This is a strange holding. Selling at a discount to NAV would indicate a bullish sign for the price. But, having the high dividend include a ROC would tend to be a bearish sign for this holding. High Return ROC diviends can be a huge trap. I am long this holding, but I am also keeping an eye out for trouble. I am guessing the yeild will not hold, either the price goes significantly higher or the diviend gets cut.