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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have a question about FTN.A (and other split shares) and exactly what happens on the 5 year termination date.

I gather that the preferred could be redeemed or rolled over at whatever the new rate is (not 100% sure on the redeemed part) but on the class A are they redeemed and reissued (so your value stays the same over a different #of shares) or do they just truck along?

I'm guessing the latter as they need to match with the preferred. Can they be tendered if the price is lower than the windup amount (which is rarely the case I know but this is just about understanding the mechanics)?

And lastly are they ever wound up in practice?
Read Answer Asked by Graham on November 09, 2023
Q: Jeffry Gundlach, on Closing Bell ( MSNBC) after J Powell’s press conference, talked about how easy it is to get 7-8% yields and even as high as 12-13% with very little risk.

More specifically he cited closed end funds trading at 50-60 cents on the dollar.

Would you please provide a few examples of what I could buy.

Do you also agree that the risk is very low.

Read Answer Asked by Donald on November 02, 2023
Q: There haven't been many questions on RA of late. Now yielding a mind boggling 18% . That a lot for a fund based on real assets ..... Something happened in late August that took a third of its' value off . I believe that was a dividend cut ? What was the reason behind the cut ? With 73% of the fund invested in fixed income I don't understand the volatility .....Please review the structure and its' holdings and give me a fresh perspective of what this fund holds and its' investment quality. And explain why such a structure pays such a high dividend ? And if the new dividend faces the likelihood of another cut ? ......... Thanks Garth ....
Read Answer Asked by Garth on October 24, 2023
Q: I'm having trouble understanding why FTN keeps having these unexplained price drops!!Last time it happened I bought a lot of it and sold it for a hefty profit a few days later,which I then invested in FTN.PR which just raised its dividend to 9.25%.Now FTN is back down to where I bought it a few weeks ago!!!The yield is 22% and as long as the NAV remains above $15 it will pay the dividend,NAV is $16.82 as of Sept 15.I know you're not a fan of split shares or short term investing,but would FTN not seem like a screaming buy here???
Read Answer Asked by terry on October 03, 2023
Q: BK has dropped 18% this week. Can you explain why such a sharp drop compared to the underlying investments.
Read Answer Asked by Paul on September 08, 2023
Q: XTD is a split share corp that invests in shares of TD bank. TD has had some issues but is now seen as somewhat undervalued, with good potential upside. XTD, currently at $4.00, pays a 15% dividend, monthly, as long at the net asset value is above $12.50. It is currently at 12.95. The risk would seem to be the risk that the TD stock underperforms. Would appreciate your thoughts.
Read Answer Asked by Guy R. on August 03, 2023
Q: What are your thoughts on this fund?
Long term performance and yield are both very strong, in excess of 9%. No covered calls but does have some leverage. Not sure how they achieve 9%+ yield without covered calls but the yield seems consistent and large portion of distribution is capital gains, eligible dividends and ROC.
Never invested in a closed end fund before. What is the difference between this and an ETF?
Read Answer Asked by Bruce on July 31, 2023