Note: This article was released to CEF/ETF Income Laboratory members on Jan. 27, 2020.
On January 22, Stone Harbor Emerging Markets Income Fund (EDF) announced a -5.6% reduction to their monthly distribution, from $0.18 per share to $0.17 per share. The next ex-date is February 13, 2020. This distribution cut was surprising to some participants because the fund had been paying the same level of distribution since inception nearly 10 years ago.
(Source: CEFConnect)
At first glance, this unbroken streak of distributions may seem quite impressive for a fund yielding ~22% at NAV (16%