CRF - CLM: This 15% Yielder Is Not On Sale, But It's Still A Buy
2025-01-23 08:05:39 ET
Summary
- CLM offers a high 15% yield and has outperformed the S&P 500 recently, but its long-term performance shows significant underperformance since inception in 1989.
- The fund's portfolio is heavily equity-focused, featuring major US tech companies, and includes a mix of closed-end funds, common stocks, and ETFs.
- CLM's premium has surged to around 25%, posing a risk for investors who may overpay; careful consideration of time horizon and risk tolerance is advised.
Introduction
It's easy for many income investors to look at the Cornerstone Strategic Investment Fund ( CLM ), see it beating the S&P 500 over the past year, and want to buy in right away. Who could turn down a 15% yield (formerly upwards of 20%) that beat the S&P in 2024?...
CLM: This 15% Yielder Is Not On Sale, But It's Still A Buy