When AWP sold its original offering, I believe the price to the public was 20/ share.
Today's extra payment, along with last year's extra, probably reflects that fact more than any other.
I originally bot AWP for 5 and change, a horrible discount from the fund's offering price.
The monthly divi of .03 made for a 7.2% return on the stock @5, but closer to 2.5% based on that original 20 dollar offering price. This year, the extra has the same effect, although the monthly divi is now .033 and the price of AWP shares have moved up about 40%.
If the managers did/do a half decent job of investing the original fund assets, there is still plenty of room on the upside for AWP stock, as well as room for meaningful monthly divies.
After recently reversing my opinion about AWP and deciding to sell, which I posted here in several threads, this morning I updated some research I'd done on my monthly dividend paying CEFs, what I was going to sell and what I was going to buy.
The charts shocked me.....and have temporarily put my "sell AWP" opinion on hold. See:
You can fiddle with the default 200 day timeline using the slider at the bottom of the chart, but I'll save you the effort. I double checked the same symbols at Morningstar because I couldn't believe my eyes - they and Stockcharts are one of the few free charting services on the web that report "total returns", i.e. the % gain shown includes dividends and cap gain payouts.
The stunning results show that over both a 3 month period (chosen to include the effects of the recent fed budget announcements) and a 1 year period AWP has come in at #1 and #2, respectively. My once steady as a rock PPT has nosedived because of the interest rate hike fears and is only going to get worse, so that's going on the sell block after a few up days, and HYB may follow. I'm definitely going to buy some DHF, which was flip-flopped with AWP, #1 over 1 yr and #2 over 3 months.
Still haven't found a second replacement CEF that pays monthly divs and isn't sensitive to interest rates, which I am sure will be going up sooner or later, so I may buy some stocks instead. Currently on my watch list besides DHF (rated 4 stars by Morningstar) are:
SDRL: already own some, but it still has at least another 30% upside plus it yields ~7%, also is Zacks #1 rated buy for 2011
LAQ: a CEF focused on Brazil (they just paid a whopping $10 special Dec div, a 28% yield!)
GLNG: another John Fredriksen company. They're involved in storing, shipping, and distributing Liquid Natural Gas (LNG), which is going nowhere fast in the USA but growing at amazing rates globally, they also pay a 7% div to boot.
P.S. If anyone has any good ideas on a fund to replace my HYB feel free to chime in!
NMM which is safer than NM Also, if you want to read up on a great story read about SSW.
These are all shipping stocks, but very different from each other. Much like GLNG is different. JF is the man though.
If you want a wild card that could make you rich (no dividends for some time to come), but an amazing story, look into FCO.TO They are going to rock. The Idaho Cobalt projuect, coupled with REE, Uranium, and processing is a killer combo when China is cutting off all of our supplies.