CLM - CLM: It's Not A 'Buy And Forget' High-Income Fund
2024-05-03 12:23:12 ET
Summary
- Cornerstone Strategic Value Fund has a high dividend yield of over 17% but has seen a significant decline in price over the last decade.
- The fund's distribution history is inconsistent, but it may still be appealing when paired with other high-yielding assets. In addition, the accumulation of shares at NAV offsets this.
- Despite the poor NAV growth, the total return performance has been high because of the distribution.
- CLM is best utilized when the investor is aware of Rights Offerings and takes advantage of the dividend reinvestment NAV discount benefit.
Overview
Taking a look at the price chart of Cornerstone Strategic Value Fund ( CLM ) is sure to scare away some first-time viewers. The price has fallen by over -70% in the last decade alone. However, this Closed-End Fund's appeal is all in the high dividend yield. Since this is an income-focused fund, the price decline hasn't scared away the veterans who have held on to CLM for an extended period of time. However, I wanted to give this a fair shake and determine whether this is a sustainable choice for retirement....
CLM: It's Not A 'Buy And Forget' High-Income Fund