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The Best Healthcare CEF For A Retiree To Receive A 7% Dividend

Published Thu, 02 Jun 2016 07:09:03 -0400 on Seeking Alpha

This is the 6th article in a series where the goal is to put together a $100,000 portfolio of CEFs and ETFs that offers 7% cash dividends annually while at the same time growing or at least maintaining capital. You can follow up on the previous 5 articles by placing my name in the search criteria in the top right hand corner. It is the kind of portfolio a retiree who needs cash to live on desires; someone whose situation is similar to my own.
The goal of this article is to find and back test healthcare and pharmaceutical CEFs to find a fund or funds to fill this sector of the portfolio. The CEF screener came up with the following results.

Source: CEFConnect.com Web Site
The 5 showing the lowest expense ratios were Tekla Healthcare Investors (NYSE: HQH), BlackRock Health Sciences Trust (NYSE: BME), Tekla Life Sciences Investors (NYSE: HQL),Tekla World Healthcare Fund (NYSE: THW) and Tekla Healthcare Opportunities Fund (NYSE: THQ).
These 5 funds were placed in TD Ameritrade's compare funds table below.

Source: TD Ameritrade Web Site
Two of the funds, THW and THQ were excluded since they are less than 5 years old. The first fund to back test is HQH and the 5 year graph is shown below.

Source: Interactive Brokers Web Site
This graph starts out low and has an upward bias until the middle of last year where a significant decline begins. At the beginning of the 5 year period HQH was selling for around $15.00 per share and is currently... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
H&Q LIFE SCIENCES INVESTORS 16.51   0.0 0.00 0.00 9.00
BLACKROCK HEALTH SCIENCES TRUST 38.80   0.0 0.00 0.00 6.20


Older articles featuring H&q Life Sciences Investors (HQL):
THW: Bet On Healthcare With This 10.88%-Yielding CEF
Pace Of Dividend Cuts Accelerates In February 2019
Are CEF Investors Getting Suckered Into High Yields?
Share In Healthcare & Biotech Gains With An 8.3% Yield
Interview: Long-Term Very High Dividend Picks From 9 Prominent Seeking Alpha Contributors
You Can Buy This 11.2% Yielding, Unleveraged Equity CEF Without Paying A Premium
7 Dividend Stocks For 2015
Tekla Life Sciences Investors Declares Stock Distribution
Equity CEFs: Don't Judge A CEF By Its Yield
First Quarter 2014 CEF Review And Outlook: Discounts, Yield, IPOs And Activist Activity