CLM: Runoff Dividends, Not For Reinvestment

2025-04-11 09:12:01 ET

Summary

• Cornerstone Strategic Investment Fund offers a high 21% dividend yield, potentially appealing to investors seeking returns amid bear markets.
• CLM's historical performance lags behind the S&P 500, with negative total returns over the past decade, questioning its effectiveness.
• CLM's unique distribution policy results in high yields not tied to investment income, making it better suited for dividend runoff rather than reinvestment.
• With a generic large cap portfolio, CLM is fairly valued with no indications of undervaluation or value-creation from management, making it a Hold, especially in a declining market.

Cornerstone Strategic Investment Fund, Inc. ( CLM ) offers a 21% dividend yield on recent quotes. With the threats of tariffs, a recession, and a long-term bear market that comes with those, many investors shift their attention to dividends as a way to ensure return that may not be seen in capital gains for a long time....

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