Q: NXF.B appears to have a cycle. When it is up it is up for about 1 month to two. Then it drops slightly under what I paid for it. This lasts for about two years. Then it goes up for 1 -2 months again. It is up now. Should I sell and wait untill it drops again or just keep holding for income? 80 yr old investing for income with individual stockd and some covered call ETF's with a ten year time frame. I hold individual stocks included in the ETF.
5i Research Answer:
Energy is always going to be cyclical. NXF.B is up 9.81% over one year, and five year annualized is a solid 22.46%. With its 7% yield, there will be some price variability surrounding dividend dates, and options premiums vary significantly with volatility. We cannot direct answers personally, but we would be comfortable holding this for sector income.