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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: BGI started out at $10.00 with a .15/qtr, dividend with a target yield of 6%, about 10 years ago. It has managed to keep paying the .15 quarterly dividend since, but the unit value has been mostly below 10.00 since it started. It appears now to be trading near it's 10 year low and the current yield is over 12%. It looks like further downside is possible with rising interest rates and also as it trades at a premium to book value. It looks like the payout ratio is over 300% at present. Your thoughts on the following questions. Is the dividend safe at the current level given the securities it holds? With the payout ratio so high is the Fund forced to do an equity issue to maintain it, or do return of capital payments? Do you feel this is a good entry point? Finally, how likely do you feel that they may reduce the dividend back to the 6% yield level in order to preserve cash in the fund? Please deduct as many credits required to answer. Thank you for the great service. ...Will

Read Answer Asked by Will on January 17, 2023

Q: I am a retired income investor. I own a lot of the various Brookfield companies. I have held BGI.un for quite some time and, unlike the Brookfied companies, I am well under water. It is very thinly traded. I have no problems keeping BGI because it fits my need for dividends but I am wondering if it is dead money and will keep slipping. Can I have your opinionon its future

Read Answer Asked by Don on January 12, 2023