MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

DLENX vs. PREMX

MaxBialystockMaxBialystock
edited April 2011 in Fund Discussions
Which looks better to you all? I note the share price on PREMX has sunk over the last several months. The case is just the opposite for DLENX.

.....But DLENX offers a dividend of only a bit over .04 cents per month per share, while the monthly div. from PREMX is over .07 cents per month per share. I suppose it's nice to see the share-price appreciating in value, but if someone is deliberately choosing to live off of the monthly dividends spun-off by the fund, why wouldn't ANYONE choose the bigger monthly dividend?

Also, DLENX is severely overweight in corporates, as opposed to government debt. With PREMX, it's two-thirds in government bonds, and one-third in corporates......

Thoughts?

Comments

  • scott
    edited April 2011
    If I had to pick, I continue to like DLENX and TGINX better than PREMX, due to their ability to overweight corporates and their overall flexibility, versus simply holding govt. bonds. That said, I dumped quite a bit of TGINX yesterday and am down to only a foothold. It's not that I dislike EM bonds or the fund, it's simply that the fund has run quite a bit, I want to reduce risk and just feel as if there's more downside risk than upside risk for EM fixed income at this point if things do turn. If easy monetary policy continues, you may see more money trying to find a home in this sector for a while, but I just felt as if it was time to move on to something else for the time being.
  • MarkMark
    Max - Correct me if I'm wrong but it's not the size of the dividend you should be looking at but rather the 'yield.'
  • MaxBialystockMaxBialystock
    I suppose you're right, Mark. I just don't know how to very easily translate "yield" into real cash. If I can consistently (monthly) see .07 cents/share --- or .04 cents/share, in the case of DLENX--- and in turn, I know how many shares I own, then I have a handle on what I can expect to receive every month. That's all.
  • scott
    edited April 2011
    You're correct. However, I prefer quite a bit more flexibility from TGINX and DLENX (although I prefer the former) in exchange for a bit less yield. For me it's a balance of yield and what are the features/what does it offer.
  • MaxBialystockMaxBialystock
    Anyone else? Thanks to you who have already contributed your thoughts.
  • Mitchelg
    I prefer the ETF ELD. Better countries.
  • rmt
    Max, I like and hold Templeton Global Total Return Fund. It can include dev and EM debt and corporates plus u get Hasentab's currency managing skills.
  • AndyJ
    Hey Max,

    I'm mostly in ELD (see Mitchelg's note above) but still have some Premx. I think I'll keep it for a while anyway, so my Price account has enough $ in it to establish a meaningful position in a really volatile holding (like Prlax) if/when it gets knocked down to a bargain price. Otherwise I'd probably migrate to Tgeix, and possibly pair it with the TCW core bond fund Tgcfx. (I've been slowly becoming kind of a fan of TCW/Metwest even without Gundlach.)

    AJ
  • MaxBialystockMaxBialystock
    Thanks, all!
  • 00BY
    I don't think you can go wrong with either PREMX and DLENX.
Sign In or Register to comment.