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When You Should Be Wary Of A Fund's High Dividend

FYI: If you are hungry for income, it is hard not to salivate over double-digit dividend yields that some closed-end funds offer, when most stocks only pay around 2 percent.
Regards,
Ted
http://www.fa-mag.com/news/when-you-should-be-wary-of-a-fund-s-high-dividend-18407.html?print

CRF's Latest Distribution History: Look At Return Of Capital:
http://cef.morningstar.com/distribution?t=CRF&region=usa&culture=en-US

Comments

  • edited June 2014
    @Ted
    Thanks for posting. I was not unaware of the problem of UNII for some of the CEFs, but I was entirely unaware that it could get sooo bad (bottom paragraphs). They must be remarkably good at finding just the right language, in describing performance, to keep so many of their investors from doing the math, and then asking, "What in vampire hell are you doing to me?"
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