The trick is to trade these. Was a good buy down around $5 late 2012 or so. Feel free to sell it now or hang around for a div or two. There will probably be a rights offering coming, not sure exactly when, as this scheme needs fresh capital to keep going. Don't hang around too long, buy again when it gets crushed on the new rights offering.
I bought in Dec at 5.32. Price is now 5.46 and I have gotten one dividend and I am looking forward to many more. I do not get all of this negative karma. I was in ARR and it was not panning out.
Good luck to all. Use you own DD before buying anything. Jim
Well, one of the benefits is that you do not get taxed on the portion of the dividend that is a return of capital (it will, however, lower your cost basis).
So, in an extreme example, let's say that dividend is currently 25% yeild and it is 100% ROC. After 4 years you would have a free share in the fund, with so far paying zero taxes on it. Now the fifth year would be taxable.
Only you can answer that question…as every ones financial situation and goals may be different…but the estimated ROC is about a third of distribution, not 50%....and like any investment….there’s no free lunch…gl