My Income Portfolio - The Dividend Dilemma

Published Thu, 06 Aug 2020 06:18:01 -0400 on Seeking Alpha

Seeking AlphaDividend StrategyMy Income Portfolio - The Dividend DilemmaAug. 6, 2020 6:18 AM ET|| Includes: BME, DSL, ETO, EVT, GGM, HTD, PCN, PDI, PDT, PKO, PTY, RNP, RQI, UTF, UTGby: Guido PersichinoGuido Persichino Long only, long-term horizon, closed-end fundsSummaryIn my first article, two years ago, I stated that the primary criteria I used in selecting the funds for my income portfolio were their Morningstar star rating and RiskGrade.
Last winter, as I planned my new Cupolone Income Portfolio, I selected fifteen CEFs using the same criteria.
As of today, the Morningstar risk-adjusted ratings for more than half of the CEFs in my portfolio have been downgraded from their ratings at the time I purchased them.
Meanwhile the RiskGrades, which indicate exposure to risk compared to the S&P 500 and Nasdaq, has vastly increased for each of my funds.
Despite these negative indicators, all of my CEFs continue generating consistent returns amid the coronavirus pandemic.
I’ve Got a Dream
“On September 20, 1973, the day before the lead single from his fifth album, I Got a Name, was released, Croce, along with five others, was killed in a plane crash at the height of his popularity. Croce's music continued to chart throughout the 1970s following his death.” (Wikipedia)
I was 13 when Jim Croce died. At the time, I ignored Jim Croce as I did most American music. However, some years later a friend of mine - the same one who introduced me to country music - played Jim Croce’s double album, The Faces I’ve Been, for me. This album, which was released two years after his death, made Jim Croce one of the singers I loved most in my youth.
The title song from the album I Got a Name has a refrain that became one of the (many) soundtracks of my life:
"Like the fool I am and I'll always be, I've got a dream, I've got a dream…”
Even today that refrain reflects my aspirations, informs my decisions, and supports my battles. Like the fool I am... Read more