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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (7761)

8/9/2024 11:52:40 AM

From: jritz0

Read Replies (2) | Respond to of 21988


"If I can get a utility or REIT anywhere close to the yield on a CEF or BDC, I'm going to go the route of the utility and REIT. Does that make sense?" Maybe I'm not following but I don't know of any equity reits or utes that pay anywhere near what reit and utility CEFs distribute. As rates fall, leveraged CEFs costs should fall and they are monetizing their gains monthly. Using Realty income as an example, it currently pays 5.4%, even the unleveraged CEF RFI yields 7.8%. Option funds like SPYI distributions vary because of the volatility of the options and has nothing to do with floating rates or lower interest rates. I agree BDCs are a different story as well as preferred ETFs and CEFs, although the funds can dump their floating rate securities and buy fixed rate preferreds.