+ Watch NCV
on My Watchlist
Closed-end management investment company
11% premium to NAV
The economy is picking up.
Great dividend payer, not as risky as PHK, and other Pimco stocks. Long term dividend reinvestment under a ROTH is sweet.
I've got 3-4 other high dividend return plays that have been active for over a year now. Overall, they can't beat the S&P when it's on a tear and sometimes the NAV, (net asset value) is much less than the fund price, so is subject to correction. When the market is struggling, the flight to safety bumps up the NAV. With proper timing and the dividend effect these can be profitable CAPs and real life plays. All the funds "give back" after the dividend date, so timing on playing these on CAPS should include timing on the dividend, timing on the NAV being relatively fair and not a high premium, and then patience for a year for the dividends to drive down the "start price". Again, the S&P if on a tear might outperform leaving you red for awhile.
If you like closed end funds this is a high quality one. They are distributing their income and the Pimco premium is very reasonable. In this market dividend jems like this one may be the only game in town for a while.
dividend income strategy.
ANOTHER ONE THAT I AM GOING TO KEEP & EYE ON & DO ALOT OF RESEARCH ON.
The Fund is trading at almost a 40% discount to NAV, and its assets are not even equities but mostly bonds, with their biggest position being in Treasuries. They have been hit with the double whammy of the broad sell-off in bonds, and then broad redemptions. As a result, the Fund was forced to postpone its dividends, which then totally tanked the Fund's market price, because the "Fund is not permitted to pay or declare common share dividends unless the Fund's ARPS have a minimum asset coverage of 200% after payment or declaration of the common share dividend, in accordance with the 1940 Act and the Fund's By-laws." The good news is that the Fund is still generating large amounts of cash, and using it to repay their ARPSs at par. They should complete this process by January, and then I see no reason why they won't reinstate their dividends. Either this is an historic buying opportunity, or I am missing something big.
Market rebound will drive this leveraged convertible fund to a nominal 10% above S&P 500.
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