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Strategies & Market Trends : Dividend Investing -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (366)	10/31/2006 11:58:33 AM
From: bunglingbob	Read Replies (1) \| Respond to of 387

Tom, thanks for the comment on CHY. It gives me a chance to ask for a little more feedback to increase my understanding of the closed end funds. I considered CHY for my watch list because of the nice return but eliminated it for a number of reasons. 1. Like you said it is near the top of the range and looks like it has a history of dropping 10% or more. I'm reluctant to go for a stock at or near its 52 week high. 2. It's selling at over 10% premium but has sold for a premium since its inception. I don't know when one might consider buying at a premium rather than at a discount. 3. The credit quality of 77.4% its holdings is BBB and below. I'm unsure of the importance of this since from what I've read a low percentage of non investment grade bonds default. 4. I'm somewhat confused with the way etfconnect describes credit quality. BBB is the lowest investment grade bond but how do you know what portion of the category is actually below the BBB rating? Any thoughts on my concerns? Bob