To: chowder who wrote (7776 ) 8/9/2024 2:27:37 PM From: jritz0 Read Replies (1) | Respond to " Because I have a 100% margin of income safety, the 5.4% yield is close enough for me to consider a swap. It's the margin of income safety that provides me with multiple options, swapping O for HTD is just one example. In fact, I could possibly replace QDPL with more O. I know you wouldn't, but I might once interest rates start coming down." Are you switching to O because the rates are going lower or are you expecting a recession and figure O would hold up better than a REIT CEF? I could buy into the idea that O could hold up better than a REIT CEF but lower interest rates would help both, not hinder them. A recession is a different matter and I wouldn't want to hold either if I'm trying to market time. I also have a very large margin of safety and may move in and out of leveraged funds as well as reits and utes but O is still a reit. I moved back into reits and utes earlier this year thru CEFs and NEE but won't hesitate to sell. I believe you have mentioned many times that CEFs could cut rates and that wouldn't bother you because the dividend would still be larger than needed. RFI could cut their dividend by over 30% and still have a larger yield than O. I don't own RFI, I own RLTY and I could buy the same amount of monthly distributions with $5600 of RLTY for what one would receive from $10000.00 of O and put the $4400 in CDs treasuries, MMs or corporate bonds. The same could be done with unleveraged RFI, although it might be closer to $4000 left over for CDs and such. This is how I look at and use CEFs and higher yield ETFs. I won't be selling QDPL, I like the idea of earning my income from the proxy index of a major market, or options funds like SPYI, QQQI, JEPI and JEPQ despite the variable distributions. O is considered a Regulated Investment Company just like CEFs and ETFs.
