When this CEF started, income investors signed on for an 11% roi. Now my portfolio has been blasted, but I'm getting the same dividend and the same yield. In fact, by adding purchases, I more than make up for my losses because my new shares at much lower price pay the same as my original shares. If the dividend persists, I make out regardless of the NAV.
Good one, Rich. We were trading at a premium to NAV a couple weeks ago, now we're trading at a discount. Discount is much better for long term investors who want to reinvest their divvys. Shares grow so much quicker. I look for the market to stabilize in coming months, and I would love for AOD to do the same. So much is beat down here in this environment that there's got to be a lot of upside room. Remember, no market stays down forever, there will come a day. Jack Vogel said the market is a giant distraction to the business of investing, and he founded Vanguard.
richheim / Great post! You are 100% correct. The talking heads would have you thinking the sky is falling and we should hide unbder our beds. If we have 6 % unemployment--they would never say 94% of us are still working. Wall St. has always operated as a pack,--and always have 100 excuses for the game they play. "It's fully valued, it's over valued, we don't like their forward outlook, of we're in a sector rotation, etc, etc, etc,"..Remember Sports Fans. Wall street is in the business to get your money---and if the market has lost two trillion dollars in this swan dive---Where did that money go??? Hang in there and keep your cards close to your vest. Merry Christmas to all scribes who love the Baby Jesus, and to the other scribes, Happy Holidays.
Tecnnically it's all earned. However as it earns it the NAV goes down so it's really just a technecality. I think the fund is worth holding though. Believe they may be trying some creative ways to hold the income and boost the NAV. They have a CC on the 30th. Should be informative.