Dividend-News

Daily dividend news for investors in dividend stocks


Mutating The Hybrid Dividend Income Portfolio: Stocks Out, CEFs In

Published Thu, 07 Mar 2019 11:31:55 -0500 on Seeking Alpha

Back in 2015, I presented my Hybrid Dividend Income Portfolio. It is "hybrid" because although most positions are income-focused, I also maintain some valuation plays that I believe might generate additional capital to feed new income segment purchases. At the time, I was looking for a yield between 4% and 10%, and a relatively cheap valuation based on metrics like P/E ratio, and AFFO (adjusted funds from operations) in the case of real estate investment trusts. Diversification across business sectors and geographic zones was also a priority. I subsequently got very busy managing the portfolio, and did not update it here on Seeking Alpha.
Income Segment: Replacing individual stocks with closed-end funds (CEFs) and ETFs
Since then, a lot has changed. Quite early in the process, several accidents with individual stocks highlighted the extreme volatility that can accompany dividend cuts or commercial operating problems. I concluded that given the level of income I was seeking, I should diversify away most of the individual stock risk by opting for closed-end funds (CEFs) or exchange-traded funds (ETFs).
Most of my income positions are now CEFs, which offer a complex set of advantages and disadvantages. On the plus side, they can often be bought at a discount to net asset value (NAV), pay high distributions, and are not required to sell assets at the bottom when investors rush for the exit. They can also cover a wide range of business sectors and geographic regions. On the... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
EAGLE POINT CREDIT 16.14   0.0 -1.13 2.40 14.64
TCP CAPITAL 13.75   29.3 0.47 1.44 10.48
ING ASIA PACIFIC HIGH DIVIDEND EQUITY INCOME FUND 8.52   0.0 0.00 0.00 9.66
HERCULES TECH GROWTH CAP 13.26   10.0 1.32 1.28 9.55
CREDIT SUISSE ASSET MANAGEMENT INCOME FUND 3.16   0.0 0.00 0.27 8.52
ARES CAPITAL 19.19   10.5 1.82 1.60 8.39
STARWOOD PROPERTY TRUST 24.39   18.5 1.32 1.92 7.95
COHEN & STEERS INFRA FUND 27.26   0.0 0.00 0.00 6.88
REAVES UTILITY INCOME FUND 36.75   0.0 0.00 0.00 5.89

EAGLE POINT CREDIT - ECC
EAGLE POINT CREDIT - ECC  


Older articles featuring Eagle Point Credit (ECC):
Monthly Pay December Dividend Stocks And Funds
Monthly Pay, Fully Covered 12.5% Yield From XFLT
Top Monthly Pay Dividend October Stocks And Funds
September's Top Monthly Pay Dividend Stocks And Funds
How To Get CEF Yields Without CEF Problems
The Top Monthly Pay Dividend Stocks And Funds For August
Rare 12% Yield And 38% Discount: HFRO
Your Top Monthly Pay Dividend Stocks And Funds In July
5 Monthly Dividend Stocks Paying Up to 20%
Top Monthly-Paying Dividend Stocks And Funds For June

More