ARCC - FTF's 12% 'Feel Good' Yield Looks Tempting Until You Look Behind The Curtain
- There are lots of bargains out there these days, solid income funds paying higher yields than they were a week or a month ago because of the market swoon.
- But Franklin Limited Duration Trust (FTF) is NOT one of them, despite what looks - at first - like an attractive 12% yield,.
- A classic over-payer, that distributes a yield it doesn't even come close to earning, FTF is a "yield trap," that serially erodes its NAV and market value over time.
- But there are plenty of real bargains that actually cover their distributions, like FSD, HYT, KIO, GHY, ISD, JHI, AVK, BIT, PGP, ARDC.
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FTF's 12% 'Feel Good' Yield Looks Tempting, Until You Look Behind The Curtain