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||16.24||0.0||0.00||0.00||8.04|
|BLACKROCK HEALTH SCIENCES TRUST||37.56||0.0||0.00||0.00||6.35|
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