for those looking for income there are some closed end bond funds that have become attractive. two that i have been buying this week for income are ACG and BKT.they hold mostly government debt and have declined to the point where they trade at a discount to nav and yield > 8%. do your own research.
vhehn I have ACG on my screen too. I bought it at 8.50 and sold it several days later for a nickle higher. That wasn't the intent clearly, but this selloff potential was out there. Looking at the chart now, I am tempted to re-enter for the original intent, ie., income. The yield is very nice. But the monthly chart just scares the bejeebies out of me. It looks to me that the price rallies for 3+ years then tanks for 1-2. Having just completed the rally part, I am hesitant to get in even now. Granted at this yield I have 80 cents of protection. This remains a tough one.... only because of the objective.
thats why you want to wait until a cef trades at a discount to nav before you buy. you have less risk. if bonds tank further these could go lower.
ACG appears a little safer than BKT. BKT is involved with FNMA bonds (mortgage duration risk and ECB's selling) and it is leveraged. BKT max discount to > 18% history: http://www.etfconnect.com/select/fu...e=BlackRock+Income+Trust&ticker=BKT&MFID=3730 ACG max discount to > 12% history: http://www.etfconnect.com/select/fu...asp?name=ACM+Income+Fund&ticker=ACG&MFID=3707
Geez I'm slow. I just now understood your name!!! No wonder I trade the longer term better. I wanted to ask you guys, or anyone, how does the monthly dividend distribution work? By this I mean, when does the shareholder qualify for the dividend? Thanks.
It is the same as a regular stock dividend. You must be long prior to the ex-dividend date and still be long after the market close on the record date. If you meet that criteria then you qualify for the dividend.
not exactly correct.you must be long prior to ex dividend date but you can sell on the day it trades ex dividend.same as any dividend stock. you only need to hold overnight 1 day to collect the dividend.