Decided I didn't want this thing after reading a WSJ article claiming a large portion of your dividend is a return of your own money. Anyway of knowing how much of the 18% is return of capital and how much is actually from fund investment earnings? Kind of a hokie way of hiding the actual dividend and how much management fees are being charged. I'm surprised they haven't been sued doing this.
That's what I wrote about on Dec 28:
LONG TERM = ZERO % return ! ! !
That is what the result would have been , had a person bought this stock in early 2008 for the lowest possible price, around $ 15, and kept it and accumulated dividends for all of those years. From Jan 2008 through Dec 2013 they paid a total of $ 9.79 in dividends. Add to that the current share price 5.12 = $ 14.91, so you would have even lost money over a 6 year period. (Not considering re-investment of dividends) Even a CD would have paid more than that in 6 years !
Which leads to the next question : Since share price has been on a non stop downhill trend, how low will the next leg down take it ? Right around 4.50 I would guess
Funny that you post this on Dec. 28…….and deem this CEF as worthless……and here you are again Feb 18…..with the same song and dance……do you usually waste your time on worthless stocks???....also seems funny how you pick a time when the market was most volatile…..just prior to the worst market crash in decades……every stock in the market took a hit during the crash…some more than others…..and some didn’t even survive like Bear Stearns, Lehman Brothers to name a few…..anyone that chose to hold during that time frame…without averaging down or reinvestment of divvys, or participating in the RO’s afterward…..would have been as stupid as the OP of this tread…..now how about if they waited til Oct 20, 2008 and bought at the low@ $6.25…..what do you say about that???
Your math is right but your thinking is wrong. These days to buy and hold is suicide, so if you know how to trade you can make big money on CFP, if you buy at SO, keep for 5-6months sell and than repeat. NO CAN LOOSE.
The article in the WSJ may be technically correct. Without reading the article and analyzing the written word I cannot say. I will say that I averaged over 20% net return on my Scottrade account in 2013 and the overwhelming amount of the account was in CFP. That being said you do not learn much without having skin in the game and watching the numbers. I have and I am going to continue to have the majority of my account in CFP or some other closed end fund. Once again, as stated below, it would be helpful to be a little more careful with your 27,000 bucks. Good luck! Check back in here once in a while for what will hopefully be healthy dialog! Happy Trails!
Sentiment: Strong Buy
Really?.... just to make $50 bucks ?......well, all I can say is either you are the biggest liar…..or the biggest fool…..or perhaps both…..cause no one in their right mind would risk over $26,400 on something without doing DD first…..LOL
Sounds as though you have not had any experience in CEF's . Most if not all pay some money in ROC
(your own money) and that money is deferred at tax time. Good luck if you continue and CFP pays less
ROC than the other Cornerstone funds.