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

To: Max2.0 who wrote (23785)	12/20/2025 10:52:24 PM
From: QTI on SI	2 Recommendations Recommended By LCES suncoaster Read Replies (1) \| Respond to of 23820

Re. I have RNP, RQI, UTF and NXBG on your safe/borderline list. Looks like I might be in trouble. Not necessarily, but it does mean those positions deserve context and monitoring, not autopilot ownership. DSS v2.0 isn’t saying “sell immediately” or “these funds are broken.” What it’s flagging is how the income behaves relative to capital, especially in a higher-rate environment. Here’s how to think about each of those: Cohen & Steers REIT & Preferred Income Fund (RNP) and Cohen & Steers Quality Income Realty Fund (RQI) These are classic REIT income vehicles. The distributions may continue, but capital has not been a reliable partner. They fall into “yield works only if you accept capital drift”. That’s a risk, not a crisis — especially if position sizes are modest and expectations are realistic. Cohen & Steers Infrastructure Fund (UTF) UTF is closer to the borderline/safe line. It’s not a yield trap, but it is rate-sensitive. In DSS terms, this is a monitor, not a red flag — particularly if you’re holding it for diversified infrastructure exposure rather than pure income. Neuberger Berman Next Generation Connectivity Fund (NBXG) NBXG’s returns have been capital-driven, not distribution-driven. That doesn’t make it bad, but it means it’s misclassified if you’re relying on it as an income anchor. Think of it more as a growth-tilted CEF that happens to pay. Bottom-line, I do own many of these funds, but I don't own them as a buy and forget investment. I regularly watch their premiums/discounts and make my buy/sell/trim decisions based on that. They are seldom a long-term hold for me. I try to take profits when such funds are trading at a high premium and rotate into something at a discount. I would do that even with funds that are rated as Safe/Very Safe such as UTG, BUI, BST, and BME. In short, you’re not “in trouble” — but DSS v2.0 is doing its job by telling you which holdings deserve active attention and sizing discipline rather than blind trust.

To: Max2.0 who wrote (23785)	12/21/2025 12:16:33 AM
From: chowder	9 Recommendations Recommended By DinoNavarre jritz0 LCES luvdividends PW13A and 4 more members Read Replies (3) \| Respond to of 23820

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.