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Eaton Vance Tax-Managed Diversi Message Board

  • keltus1952 keltus1952 Feb 23, 2014 12:55 PM Flag

    ETY....2013 distributions...

    I've held it since May 2013 in my regular account.......got my 1099 from Chase Inv. Services......no ROC.

    Source of dists was about 1/3 what they called 'dividend' buy was probably short term cap gains. The other 2/3s was Cap Gains Distributions which is Long Term Capital gains. Not what I wanted in my regular account.
    Trying to hold my regular income down due to my OBAMACARE subsidy, which is significant, and is greatly affected by my current income.
    Not an Obama fan, but this health insurance is saving me about $325 a month this year.
    Also held EOS all year, no ROC there either.
    For those looking for ROC.....I think the best place now is CEFs that hold MLPs. Now holding some FEI, NML, and CEN. All pay monthly and yield in the 7%+ area.

    Kel

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    • Hey folks ... regardless of your political persuasion, I fail to see why this post has harvested 7 negs??? I thought it was quite sane, to the point, and definitely on-topic.

    • Yeah ...ETY management made a late decision to use up ALL $450,000,000 capital loss carryforwards on their books since 2009 ....and recharacterize the fiscal 2013 distributions as capital gains...and dividend income ...
      The rep told me that the capital gains rate for most investors is still 15% or 20% depending on income bracket ...and you have to earn more than $200,000 to trigger the new ' Pelosi ' tax of 3.9% on so called unearned income ...so the $1.00 per share distribution made in 2013 would still be " Tax Advantaged " as the fund name states ...
      I note where the fund immediately reverted back to its 80% ROC policy in subsequent dividend distributions ...so this may have been a one time thing ...they wiped out all of their carryforward losses in one swoop ...so it would be difficult to replicate that again ...unless of course they had new losses to offset.

      On a simple YTD basis - ETY is showing a Total return of + 3.66% Versus a YTD Total return from the S&P 500 of - 0.34% ...That is a significant amount given the short time line ...

      ETY achieved a 2013 Total return of +28.36% ....and is up + 3.66% so far this year ...paying a 9% annualized dividend compounding monthly thru reinvesting ...and still at a 9% discount to NAV ...and after the fund has retired over 3,000,000 shares thru share buybacks in the last 12 months alone ...

      They will be using ' positive ' ROC in 2014 ...dividends that don't destroy the NAV ...

      Too hard for me to let go of this fund ...as I believe we have some strong upside potential ...at least for 2014.

 
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11.41-0.14(-1.21%)Sep 30 4:04 PMEDT

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