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Zweig Total Return Fund, Inc. ( Message Board

  • dreedva dreedva Apr 3, 2008 3:21 PM Flag

    Slow Self Liquidation

    I own 6000 shares of ZTR. And, like clockwork it pays out a nice monthly distribution--which is why I'm in it.

    But, am I the only one here who notices ZTR does not cover its distribution with portfolio earnings? (I did see a very early post noting the same.) Thus the 10% distribution, through return of capital, appears to be a slow, but sure, self-liquidation, by ZTR. I guess that's all right if it can drag it out for a lot of years.

    Any thoughts?

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    • the price adjusted for dividends has increased on a steady basis, generally, over the years

    • 1990 - .08 share price - 10.00
      1994 - .07
      1999 - .06
      2001 - .055
      2006 - .04
      now - .039 share price - 4.20

      at this rate stock will be - 1.75
      and pay .015 in 18 years

      Martin Zweig should be assamed that his name is still on this LOSER.

    • I was thinking the very same thing. I guess they call it gambling. It appears to be somewhere in the middle of it's high and low. Not sure where you bought in, but now might be an "ok" time.

    • I acquired 20k shares 9/07 at 4.87. Through April, I have received approx $5,760 in dividends. As of today (4/23 - $4.64), I have an unrealized loss (excluding div) of $4,600. In the next 12 months, I anticipate additional div of $9,600, for a total of $15,360. The stock has taken a $0.23 dive during a market that appeared on the brink of chaos and collapse.

      I have $1.4m spread out over roughly 50 div-paying closed-end funds, and receive dividends of a little over $12k per month. Over time, there are dramatic fluctuations in share price. I generally don't trade unless the shares began trading at an elevated premium. Over the last 2 years, I am approaching almost $300k in dividends. My portfolio value, without reinvestment, is showing a net unrealized loss for the past 24 mns of about $22k. It was much better toward the end of last summer, and much worse just the last few months. It is slowly coming back. By the end of this year, I expect a modest positive appreciation in value. And my div total will be over $400k for the 3 year period.

      My point: if you are going to invest for the dividend, do so for the long term. ZTR has a long history, and I am more than confident that in 10 years, they will be plugging along, paying out a steady 10%. If you are not happy here, go throw you money way in GOOG, where you can drop from $700 to $400 in a flash.

    • It is like a card game..hold or fold. I elect to hold due to dividend and due to recommendations by 2 services I belong to. So for the time being, I hold.

    • The chart I posted is adjusted for dividends. Dividends don't mean anything if they're not supported by earnings.

      You are AT BEST basically paying them a fee to at best return your own capital to you.

      They have proven they have no longer have an edge and have severely underperformed the market for years.

      Anyone who is currently in and who wouldn't use the first moderate uptick to get out is just not that bright.

    • I don't worry about the divy, but about the sometimes extreme price fluctuation. Rattles my cage.

      handy man

    • I also own in the neighborhood of around 6000 shares, but am becoming quite hesitant to continue to reinvest my divvy's in this stock....look at the history of declining dividend payments....I just wonder how secure this payout is going to be in the coming months.
      I am into this stock to help secure my retirement...any thoughts as to the strength of the dividend's future with this company?

    • Here's a fun chart for you..

      Nothing like paying these people to dramatically underperform, nice racket!

11.87-0.25(-2.06%)May 27 4:02 PMEDT