ElLobo,

The definition from the CEFA website pretty well explains what I meant.  BLU for instance has a distribution (market) yield of 11.56%, but has an income yield of .24%.

Yield:
Distribution Yield - Market  (or NAV): Total 12-month cash payments per share, divided by ending market price (or NAV, as appropriate).  Such payments may include unknown combinations of income, short- and long-term capital gains, and return of capital.  Commonly known as Market (NAV) Yield.

Income Only Yield: Based upon the latest annual report, net investment income (NII) for common shares (after subtraction of dividends paid on preferred shares) in full dollars, divided by average net assets (ANA) in full dollars, expressed as a percentage; it does not include return of capital. Thus, $2.2mm NII on $100 MM ANA would be 2.2%.

 

Incidentally,  most of your  AOD 's yield from dividend capture is listed  as income yield.  While I agree that a lot of AOD's yield that has been harvested from their dividend capture strategy is income yield from earnings, it is my belief that management has to trade so frequently that it still makes the success of the yield from AOD subject to the  market value, not from earnings independent of share value.

By the way I see that AOD shorts cash, can you explain how shorting cash works? 

helmut