This is complicated, so I hope you are really a CPA. I have the paper copy of the Oct. 31, 2014 report so I hope the page numbers match.
Page 14 of the CASH FLOW STATEMENT....6th item from the top.....shows a $ amount of $47,411,834 with the line named "RETURN OF CAPITAL RECEIVED FROM INVESTMENT IN MLPs."
Now on page 19 under Note F...near the end of the 3rd paragraph......quote...."For the year ended Oct. 31, 2014, distributions of $47,957,182 received from MLPS have been reclassified as a return of capital." That's why the "Investment income" numbers (page 12) are so much smaller than you'd expect them to be.
The $$ come from the MLPs and flows through to the distribution and is then classified on your (mine) as ROC. My dists were about 2/3s ROC.
If the ROC was destructive (return of your invested $$) it would show up in a deterioration of the NAV. FEI has grown its NAV over the last 2 years.
I like that FEI (and FPL....sibling of FEI) writes call options on up to 35% of their portfolios. Adds a little stability when MLPs are fluctuating, especially downward. The fund cites the buy / write strategy as a form of "insurance" for the approx 25% leverage.
FEI has also raised their distribution 4 times in the last 2 years.
Sept. 2013.....from .10875 to .1100
March 2014.......up to .1117
Jan. 2015..........up to .1134
April 2015..........up to .1150.....small raises, but they add up over time.
CEN still @ .1042. Not sure, but I don't think they've ever raised.
Traded it a few weeks ago in the same price area. That was a wash..
Dec. 31 NAV was $8.64...now at a 21.7% discount to NAV.
Last 1/4 declared and paid .27 div (reduced from .29). EPS estimate for this 1/4 is .27 average (range .26 - .29). Full year 2015 estimate is $1.07 (range 1.04 - 1.10).
Price targets. There are 3 of them, 8.00, 8.50, and 8.75......average 8.42.
If they declare .27 for this 1/4.....the annual yield would be 15.97%, almost too good to be true.
Last year they reported Q 1 results and declared the dividend on May 12th, a Monday. Haven't released the earnings date yet for this year's Q1 results.
Bottom is now in for both commodities. God bless Boone. He made money for me in Phillips Petroleum back in the 1980s. I have his biography in my bookcase.
J......please specify Property REITs or Mortgage Reits. Big difference. I know you usually discuss mortgage reits. Thanks...
You're probably right. Maybe just the "flip side" of some other small biotechs, especially those with no approved product. Some of them have average price targets several XX the current prices.
The only thing that troubles me is the analyst's price targets....
High of $14
low of 4.50
median of 8.00 with 11 targets......that means there are 6 targets at 8.00 or less. Five between 8.00 - 14.00.
Have taken my position from 15% back down to my base position of about 3%. Sold in 4 trades as it has moved up, all at a profit. Silver probably ready for a breather.
Has now declared the next 3 months @ .1042, all unchanged. Discount to NAV 8.9% with current price / NAV of 16.51 / 18.13. Held this most of last year. Actually a poor NAV performance compared to many other MLP-CEFs.
Kel.......................holding only FEI and 2+ years for that one.
Added to my position this past week. Now about 15% of my IRA account. Did some additional statistical work.
SLVO closed Friday @ $10.90.
Pays monthly divs that vary greatly month to month.
Since January 2014:
The highest monthly div was .438 in March of 2014.....
The lowest was .0505 in October 2014.....
The average monthly div since Jan. 2014 has been 15.69 cents......Yield based on that is 17.27%...
Including this April div of .0662, the average monthly for the last 12 running months is 13.09 cents, which equals an annual yield of 14.4%.
As you can see, the div can be 6 cents one month and 24 cents the next month. All depends on how they do with the buy / write call option program and how much Silver fluctuates. SLVO stock tends to follow the price of silver up and down, but just roughly, not exactly.
Not far from 52 week lows and if Silver advances it'll probably follow and throw off some monthly income in the meantime.
Might not be the right thing for everyone, but I like it at this time for my purposes.
Just my opinion...............Kel
I looked at their portfolio mix and I cringed. For me, way to much Real Estate and Financials, even if I never heard of most of them, even in the top 10 holdings.
Maybe OK for you guys. Good luck.........................................Kel
Writes monthly call options on SLV. Pays out the profits from this strategy every MONTH. Trading at $10.83 and the divs totaled over $1.00 (well over) last year.
Last 3 months of divs....Feb....paid .2412
The divs vary greatly month to month.