On the surface; not too shabby. These days when I see that type of yield my first inclination is to see how much of the payout was a return of capital. Well according to this the dividend for April was $0.45 of which $0.405 was a return of capital and the rest was net income. Ouch. I did not look back at other dividends to see what portion of past payouts were a returning of capital but maintaining a 10% "yield" is a big bogey for a fund to keep up with. I would not want a lot of exposure to closed end funds who are returning capital to make their payouts.
The Seeking Alpha version of yesterday's post drew an interesting comment. Here's a little taste.
But unless you get a dividend return, you ARE SPECULATING. The security is a SPECULATION, and you are a SPECULATOR. Bogle and 99.99% of the financial services industry are all confused on the semantics. Apple, Google, and Berkshire Hathaway are all speculations.
I missed the part about the dividend on the first run through so I stupidly replied by asking what makes an investment. Oh well. The dividend requirement is a new one on me. The important point to make here is this topic brings all sorts of ideas and emotional responses. It is a real hot button issue. I try my best to remove emotion at every turn.
Longtime reader DE left a good comment with a different take on working in some capacity in retirement. He says his goal is to be able to get to the point where he can "pick his busy," meaning he gets to the point where he determines what he does with his time in retirement. He says getting to that point requires that a person "needs to make as much coin and save, save, save in the salad years."
There is a new emerging markets infrastructure ETF out from iShares with ticker EMIF. I have a write up on it into TheStreet.com for sometime this week but it makes a good first impression in terms of what it owns.