Published Thu, 16 May 2019 11:25:29 -0400 on Seeking Alpha
It's hard to give any credibility to any equity CEF market price when a relatively unknown fund like the Delaware Dividend & Income fund (DDF) ($13.75 market price, $10.81 NAV, 27.2% premium, 7.9% current market price) can completely become disconnected with its NAV, and in particular, its NAV performance, and skyrocket to the top of all the equity CEF market price performances over the past year.
Here's a one-year total return performance of DDF compared to the S&P 500 (SPY):
Data by YChartsNo equity CEF comes even close to this one-year performance record and the vast majority of funds (CEFs, ETFs and mutual funds) have a tough enough time just trying to keep up with SPY. But it's when you look at a one-year NAV total return performance of DDF that you wonder why is this fund doing this?
The following table lists all of the equity CEFs I follow by their NAV total return performance between 5/11/2018 and 5/10/2019 (my spreadsheet tables come out every Friday), and though you can't make out the numbers due to how many funds are listed, this should give you a good idea of where DDF's NAV stands compared to the rest of the funds.
Here you can see that DDF is roughly one-third of the way down this list with an NAV up 3.5% over the past year including all distributions added back. In other words, while DDF's NAV has gained a measly 3.5% in a year, DDF's market price has gained 35%-plus (percentages are a bit different in the two tables above due to the SPY... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|CORNERSTONE TOTAL RETURN FUND||11.38||0.0||0.00||2.48||22.00|
|CORNERSTONE STRATEGIC VALUE FUND||11.65||0.0||0.00||0.00||21.09|
|SPDR S&P 500 ETF||301.29||0.0||0.00||5.42||1.82|
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