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Dividend Reliability During A Recession

Published Mon, 28 Oct 2019 07:24:53 -0400 on Seeking Alpha

Introduction

Given the ample historical evidence, this seems to be a classic scenario surrounding a yield curve inversion before a recession. None of the leading indicators are clearly signaling that this time could be different.
- Who Wants To Bet Against The Yield Curve: Is This Time Different?, St. Louis Fed, Carlos Garriga, Vice President and Economist, and Matthew Famiglietti, Research Associate
I have been a total return investor all of my life, but frequently discuss strategies and funds with a dedicated income investor. The primary difference is how we see risk. To me, risk is the permanent loss of capital or not meeting financial objectives. To the income investor, risk is probably best described as a reduction in your income stream. This article is about viewing risk from both sides of the fence.
There are increasing indications about the likelihood of recession occurring next year making dividend cuts a topic of interest to me. For this article, I extracted 173 lower-risk funds from the Mutual Fund Observer database in 46 different categories that were paying dividends prior to the 2007 bear market starting.
I selected the funds based on their risk-free yield divided by the Ulcer Index (Risk), Martin Ratio (Risk-Adjusted Return), Expense Ratios, Yields, and Returns during the 2007 Bear Market. Closed end funds (135) were selected following the guidelines described in "5 Best CEFs To Buy For October 2019" by Financially Free Investor using... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
KAYNE ANDERSON MLP INVESTMENT 14.71   0.0 0.00 0.00 9.76
MFS CHARTER INCOME TRUST 8.31   0.0 0.00 0.00 8.63
PIMCO CORPORATE OPPORTUNITY FUND 18.05   0.0 0.00 1.69 8.59
ING GLOBAL ADV AND PREMIUM OPPORTUNITY FUND 10.60   0.0 0.00 0.00 8.51
BLACKROCK INCOME TRUST 6.02   0.0 0.00 0.00 6.85
ALLIANCEBERNSTEIN GLOBAL HIGH INCOME FUND 11.78   0.0 0.00 0.00 6.68
TCW STRATEGIC INCOME FUND 5.78   0.0 0.00 0.37 6.29
BLACKROCK HEALTH SCIENCES TRUST 38.18   0.0 0.00 0.00 6.26
REAVES UTILITY INCOME FUND 36.75   0.0 0.00 0.00 5.89

KAYNE ANDERSON MLP INVESTMENT - KYN
KAYNE ANDERSON MLP INVESTMENT - KYN  


Older articles featuring Kayne Anderson Mlp Investment (KYN):
FEI: The Most Defensive MLP Fund Still Yields Over 11%
Income Investing And The Changing Yield Curve
9.5% Yield From MIE, A Solid CEF Priced To Buy
The Highest Yield Left In The Market
Do Dividend-Paying Stocks Make Better Investments?
Barron's Says To Buy MLPs In 2019, Yet Its Best Yield Plays Favor Vodafone
Dividend Cuts - Managing Their Impact On Our 'Income Factory'
You Were Warned: MLPs And 'I Bought It For The Dividend'
Weekly Fund Spotlight: Up To 14% Yields From These MLP CEFs
Dividends By The Numbers In July 2017

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