High Yield Investing - CEF's 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 : High Yield Investing - CEF's

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: chowder who wrote (43)	12/10/2021 9:09:43 AM
From: jritz0	of 245

RE: From a psychological point of view, although the yields will now be higher, when a distribution cut comes along it may just drop back to its old yield, and if that was satisfactory now, it should be satisfactory going forward. I know you have CEFs in many portfolios that you manage, but I have all our investments including CEFs in our 4 IRAs so there is no tax consequence for buying and selling CEFs so if I get the idea or heads up a cut is coming I will sell and then hopefully buy back in after the cut which is one of the best times to buy them. I do the same if premiums become ridiculous. DDF is a classic example, I'm up 31% not counting dividends since AUG 2020 after DDF traded down from a premium of 40% to an 8% discount in 9 months after a distribution cut. I got the idea from Doug Albo which I know you subscribe to seekingalpha.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next