Hi Robert, Re: making sure your CEF is making what they distribute.............
It's hard to discern except in the longer histories of some of the high yield funds. If the fund was at $15 a share 10 years ago and now is at $5 with steady dividends, sometimes it means they're paying out more dividend than they are making internally. It comes out being the same as them giving you back your money. However, that dividend they pay is taxable, so it's a painful way to get your money back.
Re: Your distribution is "after" all their expenses. So your indicated percent is what you will be getting. I guess if it meets our goals, it's not terribly important what the company's internal costs are. However, we would like to know they are reasonably efficient, too. There's no free lunch as we know, though.
If they were more efficient, they could pay more out to shareholders. So, efficiency does matter to us in an indirect way.
Best regards, Tom |
