I just started buying into these closed-end high income funds for the dividend yields. CIK is my first buy. I bought it for several reasons: 1. The yield 2. Good daily volume (liquidity) 3. The premium over NAV was one of the lowest verses the other high yield funds.
Question. Am I using the right judgement factors in assessing these fund's performance? Are there other, different factors that would be more beneficial. Also, what fee based services, if any, are any of you using to provide analysis on these type of funds. I would appreciate any input. Thanks.
I don't use any fee services, but have found cefa.com useful.
Would highly recommend that you visit the TEI board if you are new to closed end funds (CEFs) and look for Skelly's post. Covers a wide range of high yielding CEFs, Real Estate Investment Trusts (REITs), oil/gas royalties, and high div stocks.
I like what I see in CIK but am a novice with regard to closed end funds. What are the costs of buying into this type of fund? also what is the frequency of the dividend payments? Thanks in advance to the board.
You buy it like any listed stock thru a broker or online. Div. has been same for 5 yrs. BUT, they are losing money so now div. would appear to be eating into NAV and should be considered to some extent a return of principal. Early to mid Sept. is when one firm does a "redo" or update on their exam of closed end funds. I am waiting till then to add to my position and hope div. isn't cut to more realistic level...."if ya don't earn it. ya can't pay it."