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Re: MOST CONSISTENT MONTHLY DIVIDEND PAYMENT FUND chamois  07-09-2008, 10:25 AM | Post #2537137
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Good morning.  I don't know the answer to that, but possibly wouldn't want to own it. As you may know, CEF make  distributions rather than pay dividends, and the funds can provide a consistent distribution by returning some of your own paid-in capital at the expense of total return.  Iow, not all of a CEF distribution has necessarily been earned from portfolio income or the profits from capital gains.  Consistency can also be achieved by lower distribution rates than many CEF investors expect from the fund's particular asset class.

I personally don't mind a distribution being reduced when I understand why, particularly in the fixed income area where underlying interest rates often are cyclic in nature and distributions are kept at razor's edge of net income.  Many CEF which reduce distributions at one point will raise them again in the future. A  few CEF have a history of even raising distribution rates without preserving fund net asset values.

Maintenance of a distribution rate is one of the selection factors, but  not necessarily the most important.  JMO; others here may well have a different view and hopefully even an answer to your question..Best wishes

 

 

Topics CEF distributions dividends net asset value net income View Complete Thread
 
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