I hope this turns out better than GMR. Added to GMR position just before earnings release and my A$$ is still sore. Lying scumbags galore out there. Now went into this for some monthly income and really hoping this divvy continues. Any thought?
The 0.156 is very very consistent, I don't see that changing any time soon.
What I'm wondering is if we'll see an extra windfall divy in December. The one in '07 was very nice (35 cents or so). Didn't get one last year, probably for obvious reasons....
"How would you know...?...buy 50 shares of stock...receive .156c per share at said dist date...go to your phone and dial 1-800-992-0180 and ask them that exact question for that specific month in question"
Thanks for that, I guess that answers my question, but indulge me to whine some more. . .
I'm amazed with all the reams of accounting required that there appears to be no defined term for the amount a fund is paying as dividends from what it earns on call premiums.
For a fund to pay out it's dividends from it's assets is a Ponzi scheme.
I also own GMR. It went right back up today to the same price when the dividends were announced. I own CHSCP it pays 50 cents per quarter and the stock price however hardy moves above $27.00. It a fortune 200 company and it makes millions per quarter. Dividends are safe for the next 20 years. Preferred shares only. $25.00 buy back "if' the compamy every goes bankrupt which it won't. They deal in grain and oil. Read their website to get the real story. Amazing company. It CHS Inc. ticker CHSCP.
You might note that the original investors in IGD
paid $20/shr. and have been receiving a 9.6% return on that sum. The stock is now yielding 14.4% despite the 10% premium because the net asset value is still down. However, NAV has been rising since February so you know the distributions were not a return of investment but the results of the option strategy.
Regarding the discussion of return of capital, the fund should provide this info at least annually.
Most will post it more frequently. I don't know about this fund since I don't own it.
It's a (hopefully temporary) way to keep the payout constant.
Good luck, UCS
We own ETF funds that do ROC. Two write us and say so, With others that I suspect are doing so; I call their investor relations phone and usually are told that I will find out when the year end financial report is finalized. Draw your own conclusion whether they are withholding info to investors.
galopagos...thanks for the info...looks like a beautiful place you have there...do you work on the island or retired...?...sweet, pretty good life I would think...clean air, low population, low stress, simple life I'd guess...I hope someday somehow I can find paradise like that...glta!
"...how can an investor know when the payout he's getting is coming from covered call income as opposed to the cef returning my own money..."
***you forgot 2 other possible scenarios...capital appreciation of stock that the CEF has sold or dividends that they have received from the portfolio of stocks (short and long term cap gains)...
How would you know...?...buy 50 shares of stock...receive .156c per share at said dist date...go to your phone and dial 1-800-992-0180 and ask them that exact question for that specific month in question...was it a div or roc...that way you will have an EXACT answer to your question...glta!
Well, thanks for not calling me a moron, I've been on some boards. . .
I know how covered calls work. And I suppose if you don't care if your stock gets called away, and you don't care about buying it back at a higher price, this is an interesting way to make income. I also know of a miserable Covered Call fund, MCN, which was a mistake that I'd like not to repeat.
My question still stands, if the accounting term "return of capital" is used when a covered call CEF returns income from selling covered calls, how can an investor know when the payout he's getting is coming from the covered call income as opposed to the cef actually returning my own money. The net asset value?
If there's somewhere I can find the information without offending the greybeards I'd appreciate a hint.