Cornerstone Strategic Investment Fund: A Solid Investment With Some Minor Flaws

2025-05-15 23:58:55 ET

Summary

• I am initiating coverage of Cornerstone Strategic Investment Fund with a buy rating for its consistent, high income and solid long-term returns.
• CLM closely tracks the S&P 500, offering diversified exposure to large-cap stocks, and boasts a forward yield near 20%.
• Unique features include dividend reinvestment at NAV and tax advantages, though the aggressive payout policy risks NAV erosion in weak markets.
• Despite some risks, CLM’s track record and income focus make it a strong choice for investors seeking reliable, inflation-adjusted income.

Finding good income investments has been much more difficult over the last several years. While the market has risen fairly consistently over the last decades, higher levels of inflation and a more volatile economic environment have made finding funds that offer consistent and inflation-adjusted income more difficult. ...

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