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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
BLACKSTONE/GSO LONG-SHORT CREDIT INCOME FUND 15.37   0.0 0.00 0.00 36.57
ROYCE FOCUS TRUST 6.84   0.0 0.00 1.21 17.76
ENERGY INCOME AND GROWTH FUND 20.92   0.0 0.00 0.00 11.22
CLOUGH GLOBAL OPPORTUNITIES FUND 9.40   0.0 0.00 0.00 10.58
ADVENT CLAYMORE CONV SECURITIES AND INC FUND 14.52   0.0 0.00 0.00 9.69
CREDIT SUISSE ASSET MANAGEMENT INCOME FUND 2.97   0.0 0.00 0.00 9.09
EATON VANCE TAX-MAN DIVERSIFIED EQUITY 11.51   0.0 0.00 0.00 8.87
ARES DYNAMIC CREDIT ALLOCATION FUND 14.94   0.0 0.00 0.00 8.62
WA HIGH INCOME FUND II 6.37   0.0 0.00 0.00 8.57
COHEN & STEERS CLOSED-END OPPORTUNITY FUND 12.42   0.0 0.00 0.00 8.52
BLACKROCK CORPORATE HIGH YIELD FUND VI 10.14   0.0 0.00 0.00 8.52
NUVEEN TAX-ADVANTAGED DIVIDEND GROWTH FUND 15.74   0.0 0.00 0.00 8.51
CALAMOS STRATEGIC TOTAL RETURN FUND 12.26   0.0 0.00 0.99 8.14
COHEN & STEERS INFRA FUND 23.31   0.0 0.00 0.00 8.02
THL CREDIT SENIOR LOAN FUND 15.33   0.0 0.00 0.00 7.91
MASSMUTUAL CORP INV 15.60   0.0 0.00 0.00 7.69
COHEN & STEERS REIT 19.89   0.0 0.00 0.00 7.54
REAVES UTILITY INCOME FUND 31.33   0.0 0.00 0.00 6.51

BLACKSTONE/GSO LONG-SHORT CREDIT INCOME FUND - BGX
BLACKSTONE/GSO LONG-SHORT CREDIT INCOME FUND - BGX  


Older articles featuring Blackstone/gso Long-short Credit Income Fund (BGX):
This Blackstone/GSO Closed-End Bond Fund Offers A 9+% Yield And Terminates In 2027
High Yield For Granny: The Savvy 'Widow & Orphans' Income Factory
Blackstone / GSO Long-Short Credit Income Fund Declares Monthly Distributions of $0.098 Per Share
Blackstone / GSO Long-Short Credit Income Fund Declares Monthly Distributions of $0.098 Per Share
Blackstone / GSO Long-Short Credit Income Fund Declares Monthly Distributions of $0.098 Per Share
Blackstone / GSO Long-Short Credit Income Fund Declares Special Distribution of $0.05 Per Share
Blackstone / GSO Long-Short Credit Income Fund Declares Monthly Distributions of $0.108 Per Share
Stocks Going Ex Dividend The Third Week Of October

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