Thinking about shifting some retirement funds into this fund. Is that yield for real? (I am new to utilities). I am looking to add some dividend paying funds to my account. I am 'only' 48 and don't need the income per se but am thinking they could offset some market fluctuations and are better than bonds for what I am looking to do.
.07 cent distribution per share every month since January 27, 2000. Your yield is the .84 cents divided by your share price. So if you bought today your yield would be 14.33%. Be aware that the distribution has been mostly a Return of Capital from 2007-2011 and prior to that was a mix of ROC, Investment Income and Short Term Gains.
Ahhh, that's the slight nuance I was expecting (that the dividend wasn't entirely income from the holdings but return of capital). Anybody know of a good, low cost, dividend paying fund that truly is paying out only income from the holdings?
I just thought there may be some 'hidden meaning' in how they calculate it. But with such a high yield and the fact this fund is at a historically low price - this seems like a no-brainer buy for someone seeking the safety/hedge of dividends. is it not?