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Income Lab Ideas: Dividend Changes Review And Discussion Through The Pandemic

Published Tue, 30 Jun 2020 07:00:00 -0400 on Seeking Alpha

Seeking AlphaClosed End FundsIncome Lab Ideas: Dividend Changes Review And Discussion Through The PandemicJun. 30, 2020 7:00 AM ET|| Includes: BANX, BMEZ, CEF, CEN, CET, DSE, ECF, ECF.PA, EGIF, EIC, FCT, FSLF, FXBY, GDL, GDL.PC, GER, GF, GMZ, INF, JMF, JMLP, KMF, KYN, MGU, NDP, NTG, OCCI, OCCIP, PHYS, PSLV, RCG, RFM, SPPP, SRF, SRV, SZC, TSI, TSLF, TTP, TWN, TYG, VAM, VCIFby: Nick AckermanNick Ackerman CEF/ETF Income LaboratoryCEF/ETF income and arbitrage strategies, 8%+ portfolio yieldsSummaryThere were many funds that cut distributions throughout the COVID-19 pandemic.
Several funds belonged to the very hard hit sector of the energy space, which isn't too much of a surprise.
However, there were also may funds that were actually able to raise their distribution throughout this period as well.
Written by Nick Ackerman, co-produced by Stanford Chemist
Dividend cuts for closed-end funds were something that we certainly anticipated throughout this latest sell-off. Not only is that playing a role in CEFs, but will in ETFs and individual stocks just the same. This might be more prevalent for CEFs though, as they are unable to retain earnings as a corporation can. ETFs only pass-through income, so those are generally all over the board anyway.
The CEFs larger than usual payouts are thanks to them paying out almost all of the earnings that they can pull in. This is by design though, as laws require those structured as a regulated investment company to payout such a large portion to maintain compliance. The penalty for not meeting the required payouts is an excise tax on the fund. So, that means when the fund doesn't have those earnings coming in, they may be forced to cut their distributions. Leverage plays a key factor in allowing these funds such high dividends as well.

In today's electronics age, income investors can sit at home and watch the cash come into their bank accounts. While CEFs are a perfect fit for this strategy, their... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
TORTOISE MLP FUND 12.38   0.0 0.00 0.00 13.55
TORTOISE ENERGY INFRASTRUCTURE 20.77   0.0 0.00 2.62 12.48
NUVEEN ENERGY MLP TOTAL RETURN FUND 8.59   0.0 0.00 0.00 11.52
CUSHING MLP TOTAL RETURN FUND 10.20   18.6 0.55 0.00 10.84
KAYNE ANDERSON MLP INVESTMENT 14.71   0.0 0.00 0.00 9.76
THL CREDIT SENIOR LOAN FUND 14.75   0.0 0.00 0.00 8.23
STONECASTLE FINANCIAL 21.63   14.9 1.45 1.52 7.02
TCW STRATEGIC INCOME FUND 5.78   0.0 0.00 0.37 6.29
GABELLI GLOBAL DEAL FUND 9.39   0.0 0.00 0.00 4.26
ELLSWORTH FUND 10.85   0.0 0.00 0.49 3.44
CENTRAL SECURITIES 31.72   0.0 0.00 0.61 1.95


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