Wow, that seems low for such a deep discount. If it was trading at par, it would be around the t-bill rate. I assume this is more a cap appreciation play than pure yield?
am i looking at this wrong... 15 cents per share x 12 months = 1.80 in dividends 1.8 divided by 20.60 = 8.73% not so bad??
The premium is high but the yield is quite nice. My worries about such high premiums is that if the dividend is cut at all or the NAV dips for any reason, the price could drop 5% fast. If you were long this fund for some time then it is a great hold as even giving back some unrealized capital gains on a pullback is compensated by the healthy yield you are collecting over time. However with the premium at its year high, I would not touch it as a new entry right now.