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Strategies & Market Trends : Young and Older Folk Portfolio
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To: Max2.0 who wrote (23785)12/21/2025 12:16:33 AM
From: chowder10 Recommendations

Recommended By
DinoNavarre
jritz0
LCES
luvdividends
PW13A

and 5 more members

  Read Replies (3) of 23823
 
Re: I have RNP, RQI, UTF and NXBG on your safe/borderline list. Looks like I might be in trouble.

Have you looked at their dividend safety scores? According to SSD:

RNP ... 60
RQI ... 50
UTF .. 70

I haven't seen a CEF with a higher rating than 70.

NBXG .. 40

Now look at the sectors they invest in. NBXG is a Next Generation Fund. A lot of their holdings don't pay a dividend or those that do, have low yields. Capital gains is where the distribution is coming from. This fund is outperforming the market in addition to paying a 9.98% yield. That's incredible.

1 Year Chart:



RNP and RQI are real estate funds. When the real estate sector picks up, so will these funds. Meanwhile you get paid handsomely to wait. RQI just announced a 12.5% increase in the distribution.

UTF is an Infrastructure Fund. If you believe the utility sector is going to find a way to expand to cover data center needs, then this fund has 53% exposure to utilities, it also has 21% exposure to Industrials and 17% exposure to Energy. It has the highest distribution safety rating for CEF's.

So what it boils down to, is what do you expect your CEF's to do? Are you willing to invest in sectors that are undervalued and should catch a bid at some point. We know energy and real estate are cyclical or sensitive to the economy. Is it worth getting paid a 9% yield to wait?

All CEF's are susceptible to distribution cuts, very few have never cut, but what is the yield after the cut? In many cases it's still higher than we can get in equity holdings.
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