First the bad news. I do think there is a very good chance of a dividend cut which should be announced around early March. Every other buy/write family of funds has cut including Eaton Vance, IQ Investment Advisors and ING so it should not be a surprise if Blackrock cuts for its buy/write funds as well, and not just BGY.
Now the good news. At this rate, there seems to be anticipation of this happening so I believe we may actually see a rally in BGY if its still at a discount on the declaration date. I bought for the first time today and I will actually feel better about the sustainability of the fund if they do cut. JMHO.
first this fund pays quartely not monthly. second yield of 17%correct based on present price and last distribution of .455 which is 1.82 for the year divie. third i expect a haircut of 15%bringing the quartely divie to .3868 bringing yealy yield to 1.5472 u do the math as to yield. this cef is not a winner and i view it as a cd substitute and i feel belongs in tax deferred accounts. if anything u will see minimal cap growth. this is a trading vehicle. nothing more. dreiser139