LGI - LGI: Dividend Up And Price Down Now Paying Like A High Yield Bond Fund
- I own and have written favorably about Lazard's Global Total Return & Income Fund, which recently raised its monthly distribution by 8.3%.
- Like many equity funds, LGI is down in price this year, with its year-to-date total return off 6% on market value and 9% measured on its net asset value.
- With its managed distribution rate having been set based on its end-of-year NAV, LGI is paying out a pretty high yield on its current price and NAV.
- For true believers in LGI's long-term value, this may represent an opportunity to collect a nearly 8% distribution yield, while waiting for the fund's stock value to catch back up over the rest of the year.
- Of course, if it doesn't, we will face a dividend cut; also a likely capital loss later in 2021 (not just in LGI but in other equity funds as well).
For further details see:
LGI: Dividend Up And Price Down, Now Paying Like A High Yield Bond Fund