i hear ya on the monthly vs. quarterly...even though the amount is the amount so to speak i purposly as a income investor have about half my portfollio paying monthly (so i can pay bills) and half quarterly (so i can buy more stock)...this to me is just a cop out by c&S and they should know better...especially the headline on the press release! It should have read C&S SLASHES DIVYS ON ALL CEF'S!! DVM and UTF are the most disappointing cuts. While I knew all the funds divys would get a haircut especially anything to do with reits a nav on a utility fund drops 60%????????? DVM a non leveraged fund gets a over 50% divy cut??? ONE WORD FOR C&S >>>MISMANAGEMENT!! look at eoi, gdv, pdt, to name a few
MISMANAGEMENT?!! Not so fast. Look at Citi, Merrill, Lehman, Wachovia, Freddie, Fannie, GM, Ford. If you want to talk about mismanagement, we can examine these pillars of the US economy. These will be costing us taxpayers over a trillion in the coming years.
In these times of financial upheaval, I'm not sure what Management is all about--except for excessive compensation and bonuses. Every financial institution is in some sort of trouble. DVM just holds a basket of the stocks of those and REITS (another area of disaster right now.) Considering some of the big names mentioned above, DVM isn't doing super bad.
Due diligence on our part would have told us that the div could not hold. The basket of holdings couldn't support it.
Like others, I sorta hoped DVM managers might do a better job of navigating the troubled waters. Didn't happen!
And, like many others, I was holding DVM for generous monthly distributions--I'm retired. SO, with the hefty cut and change to quarterly distributions, I shall probably be looking for an opportunity to lighten up considerably on DVM. That said, the discount to NAV really is very large, but may stay that way for a long time.
Finding unleveraged funds with good monthly distributions is going to become a tough endeavor for a while. Bummer!