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  • mike57dk mike57dk Feb 3, 2010 11:01 PM Flag

    Good news...bad news

    just a quick review of the performance data on BGY :

    price on 12/31/08 -$8.49

    price at the close today - $10.75

    dividends paid in 2009 -$1.82

    Holding period rate of return ( 13 months )

    $2.36 price appreciation + $1.82 tax advantaged dividend distribution =$4.08 per share

    4.08 / $8.49 = +48.06% rate of total return ..over 13 months ..

    This is an INCOME play ..but Capital Appreciation also helps drive the overall performance ...last year even MORe than the dividends ...

    The abberration in pricing seems to occur in the dividend payment month when the price is driven way up by the dividend hunters ...If we had used the 52 week high in our example ...the performance would have been MUCH better ...but that would have been artifical ...since we knew that the price increase was temporary at best ...something we will likely see again in late Feb-early March as the dividend-only folks journey back into the stock ...

    If we see a global economic recovery ...the rising tide will lift our mutual fund boat ....made especially sweet by a super strong tax-advantaged dividend flow ....


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    • If you check the NAV performance vs. price performance, which is something I also look at, this fund has not done badly, despite the high yield. All the Blackrock quarterly payers have big price swings between ex-dividend dates. BCF is another example.

      I'd buy this over something like IGD, where even ING admits the NAV underperformed due to their handling of the options strategy.

    • mike
      not everyone bought at the low
      some paid more than the price now.
      as for dec 2008 i purchased gdf.
      i sold out recently at the high.
      i did much much better than bgy.
      however it was in a tax deferred account.
      even so still much better.
      using dec 2008 i think unfair.
      imho this just aint a growth story.
      people buy here for the divies.
      they let the tail wag the dog.
      there are much better issues ,imho,to buy for a combo of growth and income.
      just my opinion.
      good investing.

5.71+0.01(+0.09%)Oct 21 4:02 PMEDT