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High Yield For Granny (Part 2): Savvy 'Widows & Orphans' Portfolio Re-Visited

Published Sat, 22 Sep 2018 06:34:39 -0400 on Seeking Alpha

Our "High Yield for Granny" article (link here) last March introduced the idea that you could achieve an "Income Factory" strategy at various levels of yield, risk and return. In particular, we introduced a portfolio of solid closed-end funds whose average distribution was about 8% as an alternative to our core "Savvy Senior" Income Factory that currently pays a distribution of 11.6%.
We showed that, through the power of re-investment and compounding, an 8% stream of income doubles and re-doubles about every 9 years, so a $100,000 portfolio yielding 8%, re-invested annually, would generate the following approximate yearly income stream:
$8,000 in Year 1, $15,992 by Year 10, $34,525 by Year 20, $74,538 by Year 30, and $160,922 by Year 40. That is clearly "growth" by anyone's definition and would be attractive to investors of whatever age who wanted to grow a steady long-term income stream. We also described, by contrast, how an 11% income stream, re-invested and compounded, would double and re-double itself about every 6.5 years. So the same $100,000, invested to yield 11%, would generate the following approximate income stream:
$11,000 in Year 1, $28,138 by Year 10, $79,896 by Year 20, $226,860 by Year 30, and $644,152 by Year 40. The ability to generate over $600,000 by year 40 in the more aggressive 11% portfolio, versus $160,000 by year 40 in our more conservative 8% portfolio, reflects the obvious fact that with doubling... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CLOUGH GLOBAL OPPORTUNITIES FUND 9.41   0.0 0.00 0.00 11.49
ENERGY INCOME AND GROWTH FUND 20.88   0.0 0.00 0.00 11.25
ADVENT CLAYMORE CONV SECURITIES AND INC FUND 14.18   0.0 0.00 0.00 9.94
BLACKSTONE/GSO LONG-SHORT CREDIT INCOME FUND 16.06   0.0 0.00 0.00 9.19
EATON VANCE TAX-MAN DIVERSIFIED EQUITY 11.74   0.0 0.00 0.00 8.70
ARES DYNAMIC CREDIT ALLOCATION FUND 15.04   0.0 0.00 0.00 8.58
COHEN & STEERS CLOSED-END OPPORTUNITY FUND 12.56   0.0 0.00 0.00 8.44
WA HIGH INCOME FUND II 6.66   0.0 0.00 0.00 8.40
BLACKROCK CORPORATE HIGH YIELD FUND VI 10.34   0.0 0.00 0.00 8.36
THL CREDIT SENIOR LOAN FUND 14.76   0.0 0.00 0.00 8.24
CALAMOS STRATEGIC TOTAL RETURN FUND 12.46   0.0 0.00 0.99 8.07
CREDIT SUISSE ASSET MANAGEMENT INCOME FUND 3.11   0.0 0.00 0.27 7.91
NUVEEN TAX-ADVANTAGED DIVIDEND GROWTH FUND 16.15   0.0 0.00 0.00 7.74
MASSMUTUAL CORP INV 16.52   0.0 0.00 1.20 7.37
COHEN & STEERS INFRA FUND 25.88   0.0 0.00 0.00 7.20
ROYCE FOCUS TRUST 6.57   0.0 0.00 0.46 7.10
COHEN & STEERS REIT 23.02   0.0 0.00 0.00 6.56
REAVES UTILITY INCOME FUND 36.86   0.0 0.00 0.00 5.92

CLOUGH GLOBAL OPPORTUNITIES FUND - GLO
CLOUGH GLOBAL OPPORTUNITIES FUND - GLO  


Older articles featuring Clough Global Opportunities Fund (GLO):
Weekly Closed-End Fund Roundup: NBB Tender Offer, Liberty Funds Dividend Adjustment
Weekly Closed-End Fund Roundup: JQC Boosts Yield To 16%
Why Aren't These Closed-End Funds Getting More Love? Part 1: Aberdeen Total Dynamic Dividend Fund
CEF GLO: 10%+ Yield At A Deep Discount
High Yield For Granny: The Savvy 'Widow & Orphans' Income Factory
It's All Bullish For Monthly Pay Dividend Dogs And Dow August 8
Monthly Pay Dividend Dogs Stay Bullish As Dow Turns Bearish July 22
Monthly Pay Dividend Dog Prices Still Surging Higher July 15
Monthly Pay Dividends Fall As Prices Surge Per July 8 Tote
2016 Mid-Year Update For 20%-Yielding CEFL: Outperformance But Distributions Declining

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