Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Grantcw who wrote (43505)	7/22/2011 12:23:30 PM
From: Paul Senior	Read Replies (1) of 78670

These covered call cef's look interesting. I'm always wondering and concerned about what it is exactly that I am getting when the distribution yield is 10%. Nuveen says these cef options results fluctuate, so to make the quarterly dividends consistent some return of capital might be included in the distribution. Poking through the website, I find this page: nuveen.com It looks like really quite a bit of what I would be getting back is return of capital. I don't know exactly what that entails. If it means though that what's being distributed is culled from nav, then essentially it seems to me Nuveen would be giving back fund holders' own money as a big majority of the distribution. If this is so, then this is not what I want. I'll just pass unless I can get some assurance that my understanding of the situation is incorrect.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next