Three 2008 GFC Survivors: No Dividend Cuts (10% Yield)

[@armchairincomechannel]

AUTUMN SALE: 30% OFF Snowball Dividend Tracker When: September 9 - 18, 2024 armchairincome.link/snow

[@kazal70]

When you have time - can you please talk about QDTE & XDTE and what's your thought about those? Thanks.

[@peterjwilson]

This is the best investing channel on KZbin. thank you

[@armchairincomechannel]

You just made my day, thanks! CNBC is now on notice ;)

[@johnmaria205]

Honestly, the best financial presentations on the internet in my opinion!

[@armchairincomechannel]

Thank you :) I appreciate your kind words. Lookout Bloomberg!

[@bentobox7788]

I missed the boat on utg when it yielded. 10%. Great video.

[@armchairincomechannel]

It was a steal at 10%!

[@MessedUpParodies]

I've always been leery of GOF, always waiting for their their distribution cut that never comes. Kudos to them for that. On the other hand, MAIN and UTG are the safe cornerstones of many income portfolios. I've been in and out of both for many years, but I'm thinking about just staying in both for the long haul for the income. They are battle tested, tried and true. BME is another survivor of the GFC with no cuts that I plan on adding when it pulls back.

[@armchairincomechannel]

Thanks for the BME suggestion. Impressive history!

[@BTinSF]

Being far older than you, I am putting less and less money in individual stocks because I've been investing long enough, around 65 years since my grandma first gave me some stock, to see some holdings I thought were rock solid crash and burn. Crowdstrike probably needs to be considered the most recent (I don't buy non-dividend stocks but I do sell puts in them and occasionally buy calls--I sold some puts in CRWD and am still comfortably OOTM but its crash was quite a shocker and reminder. Anyway, I'm concerned about the fate of BDCs in a declining rate environment (most of their loans are floating rate) and I just think other areas have recently become more attractive, especially for individual issues. Hence I own no MAIN (I have in the past). Also, rather than UTG, I own UTF: Modestly better yield, modestly better price performance.

[@armchairincomechannel]

More funds and fewer stocks is a good way to reduce concentration risk. Thanks for sharing your investment approach :) I think the higher quality BDCs will be fine, based on their track record during previous low rate environments, and I don't expect we'll return to rates that low in the near term anyway. BDCs will borrow at lower rates, enjoy fewer defaults, and generally more demand for loans. That will be offset by a reduction in the near term spreads they earn on variable loans. Their equity positions will likely increase in value too. UTF is on my radar, I agree its a nice one.

[@bills.1390]

Thank you for that deep dive into these funds, I may add just a wee bit of GOF to my risk bucket. For my Utility sector I own DNP, the fund sells at about a 4% premium, an 8.29% dividend, price took a hit with interest rate hikes like most utility funds, but is trending up now and should continue to do so. I have owned this for several years, dividend stays the same which is fine as I am retried and looking for steady income without the drama. I also have a couple of utility companies preferred stock issues, SCE-N and SREA also, not high dividends, but solid secure companies yielding 6% +

[@armchairincomechannel]

Thanks for sharing your approach. A "risk bucket" is a good place to put GOF!

[@joelschiffenbauer6671]

Great topic. Very timely as I was also investigating investments that will continue to pay dividends through downturns. I think that even if some cuts take place my investments (UTG, ARDC, KIO,etc) will still be ahead of many others(I hope)

[@armchairincomechannel]

Glad it was helpful. A viewer pointed out that BME didn't cut either.

[@dominiquetheeasyminimalist]

Solid choices, I very recently slightly trimmed my MAIN to take advantage of the HTGC and CSWC dip. But I'm keeping a good position in MAIN for the long run.

[@armchairincomechannel]

MAIN is hard to sell. Thanks for sharing :)

[@jijiipetti1433]

Thanks for this video and the resources and insight, especially the BDC site. I've only been following you a short time but have learned quite a bit!

[@armchairincomechannel]

Great to hear, that means I'm doing my job! Except I don't have a job...

[@ventcurtisburkett532]

I sold all of my BDC except for MAIN and used the cash to buy PBDC, but I just could not cell MAIN. I think PBDC will do a better job managing the other BDCs and give me more diversity, but MAIN is a rock that just keeps paying.

[@armchairincomechannel]

I agree, its not easy to sell MAIN. It has such a long history of delivering amazing results.

[@seanwilliams9060]

Great analysis as usual! Probably adding UTG

[@armchairincomechannel]

That makes 2 of us :)

[@patrickalexis6230]

Thank you for this video. MAIN is my favorite dividend stock 💰.

[@armchairincomechannel]

Mine too! It's a beauty.

[@hulenbryant5637]

I own UTG and MAIN. And im in the process of adding GOF. I just can't ignore that distribution wothout a cut.

[@armchairincomechannel]

It sucked me in too :) But I kept the position small because of the risk.

[@hulenbryant5637]

@@armchairincomechannel Agreed. Right now I think I have it at about 0.5% and might go to 1%, probably not more than that.

[@cwilson6880]

Great Sunday content!! Luckily opened a (not large enough😅) position in MAIN in 2020 on recommendation of a friend. Never heard of GOF or UTG but will be opening a very small position tomorrow! Thanks to you I have over 40 tickets now, 😂 will need to do some thinning very soon, gotta have some dry powder for the flash crashes! Thanks as always!! 🙏🫡

[@armchairincomechannel]

I'm jealous that you got into MAIN before I did :)

[@1rocknroy]

Thank You. Good report.

[@armchairincomechannel]

Glad you enjoyed it

[@enricomonesi5856]

ARMCHAIR INCOME.........you did it again 😊

[@armchairincomechannel]

Thanks for watching...again.

[@marcosagosti6175]

Thanks for the video, and eye opener. I own MAIN and UTG, and thanks your the video I'd be adding GOF. The NAV vs Price premium/discount is probably overplayed by the media in all COFs. So what if Price it's above or below NAV? It's a theoretical number. The one that really counts for your own performance where your price is now vs your cost average + income from dividends. Many people buy below NAV in many tickers and they NEVER see an extra dime. It's a good business, let it roll. My reading on GOF is the business is good as it delivers on the dividend front, which is not based only on a high Price/NAV ratio.

[@armchairincomechannel]

Thanks for your feedback and glad you enjoyed the video. GOF is a tough one to assess, but the history is impressive.

[@SummitMan165]

Another piece of armchair income to watch on my Sunday’s morning routine now! You have a very interesting way of mixing lots of différents income investments. You’re the on,y one I watch the episode that treats BDCs or fixed income because I like the way you present them . Question: when you retired, what age were you? What send you the signal you can afford it on the money side, and on the professional side?

[@armchairincomechannel]

Thank you for your encouragement! I retired in my 40's. It wasn't part of a long term plan. On a visit to SE asia I realized that if I sold me real estate assets and cashed in my growth funds, I could generate enough income from this style of investing to retire. I spent 1 year planning the details and then quit my job.

[@rgenjic7076]

Thanks. Could you do a comparison video on income funds for nasdaq/tech stocks such as QQQI, FEPI, QQQY, GPIQ, JEPQ, etc?

[@armchairincomechannel]

Great suggestion. I'll add it to my list. Thanks :)

[@momdittomomditto7705]

Yet another informative video! Always great to hear your charming accent. I’ve considered MAIN but decided to own it in PBDC. Maybe next flash crash I’ll buy some MAIN. Thank you for your analysis!

[@armchairincomechannel]

My accent is a mushed up mix because I've lived in many places. Next flash crash I'll probably buy more MAIN too.

[@marvinirvingjr704]

Thank you

[@armchairincomechannel]

You're welcome :)

[@mountainman9685]

Very good video! Thank you!

[@armchairincomechannel]

Glad you liked it!

[@jintz2]

Love your videos!

[@armchairincomechannel]

Thanks for letting me know. That's motivation to keep making them :)

[@paytax4707]

Informative video. Thank you!

[@stevenjustice105]

no one ever lost money taking profits....never feel bad it.

[@armchairincomechannel]

True! Thanks for watching :)

[@international_dividend]

Thanks for another video, and for giving us slightly more of the theme music!

[@armchairincomechannel]

One day I'll figure out how to give more of the theme music...it's a challenge to incorporate music into an investing channel but I'll find a way!

[@international_dividend]

@@armchairincomechannel Separate video, of just the song. It may turn it to be your most watched video!

[@DeanPalma]

Thanks for the videos, appreciate your content. So little on this style of investing. Sure makes sense to me!

[@armchairincomechannel]

I agree! That's why I started this channel :)

[@rmhrmh5298]

Thanks for the terrific content!! I wonder if you would consider adding a column to your portfolio spreadsheet that indicates which of the 6 major sectors each of your investments are identified with? CC ETF (JEPQ) BDC (ARCC) MREIT (ABR) PS (NLY.PR) CEF (UTG, BST) MLP (HESM) Thanks again, for all the information you share, especially the in depth interviews!!

[@armchairincomechannel]

Thanks for the idea. It would be handy for reference. I was also thinking about yield on cost. However, I'm trying to balance that a lot of people view it on their phone and each extra column makes the text smaller. I'll give it some thought! Glad you like the interviews, I like doing them :)

[@Steverino70]

Good video, paying way over NAV is a tough one for me too. Recently I trimmed CSCW and HTGC for that reason. Have you been watching IWMI? Last month it payed 15% annualized and I think the price appreciation could be better than SPYI and QQQI(both of which I have large positions in) and I love the tax advantaged benefit too. We’ll see.

[@hulenbryant5637]

I shaved off some SPYI for some IWMI. Fingers crossed.

[@armchairincomechannel]

Yes, I have some IWMI and am keeping an eye on it.

[@moresugartradercc2744]

I have had main for years good investment I will look into the other two

[@armchairincomechannel]

Any long term MAIN investor is happy with their purchase, glad to hear you're one of them :)

[@ricksnyder1385]

Your videos are great!

[@armchairincomechannel]

I appreciate that!

[@edmitiu7383]

ODTE, sounds interesting. Cheers

[@armchairincomechannel]

I don't own it but I'm keeping an eye on it.

[@JustAnotherPersonHere]

A couple things you said in Armchair Insider that caught my eye. You said that preferreds drop when rates go down. I thought it was the opposite since preferred payouts remain the same as the yield on treasurys drop. Also, you sold a couple positions bcoz the yield dropped below your minimum due to share price increase . But, wouldn't your yield on cost still be the same or higher as the underlying stock increases in price?

[@armchairincomechannel]

Good questions. 1/ If the preferred shares are fixed (which is how they typically begin, and many remain) then as rates fall, the value of the preferred shares increases, because the income becomes relatively more attractive. In this case, the preferreds have switched to "Variable" and therefore the payouts will rise and fall with interest rates. If the payouts fall, then the preferred becomes less attractive. 2/ Yield on cost is good to know but current yield is what I'm optimizing for. Or to put it more simply, I'm trying to maximize my current income. If I buy a share with a 10% yield and it doubles in price, the current yield could fall to 5%. My yield on cost (if income is constant) remains at 10%. However, I now have the opportunity to sell it, take the capital, which has now doubled, and buy a new investment yielding 10%. This would double my income.

[@JustAnotherPersonHere]

Oh man, thank you for the detailed response! Thank you for clarifying and for the education. Are you concerned at all about the holdings in PFFA switching to variable?

[@jayman4795]

Off topic, but what’s your take on Roundhill - XDTE and QDTE? I’m personally not a fan of ultra high yield funds and their accompanying NAV decline (Yieldmax, Defiance), but perhaps these are better?

[@armchairincomechannel]

The NAV decline and lack of history are enough to sit on the sidelines for those.

[@mikeconnell698]

Great video. I have 2 of 3 of these (GOF, UTG) positions. About GOF, I had a full position but cut it to a small position based on all the pundits recommendations that the dividend was not sustainable. You indicated that they keep the NAV high by issuing new shares at the premium price. That makes sense, but where is the evidence? Since its a CEF wouldn't the issuance of new shares be thru a rights offering? I don't see any news anywhere about a rights offering. I'm wondering where you found this info. I don't see it on SA. Thanks

[@armchairincomechannel]

I agree, it's difficult to find documentation of the GOF share issuance. It's in the annual report on page 77, listed as "Proceeds from shares issued through at-the-market offering" approx $292M. Here's the link to the report: www.sec.gov/Archives/edgar/data/1380936/000182126824000177/gug87576gof.htm

[@mikeconnell698]

@@armchairincomechannel Thanks for that info. Hmmm. I didn't think a CEF could issue new shares (by definition - closed end) without a rights offering. This sounds like what an ETF does.

[@JoaoLuissonhar]

good content What is your view on the covered calls etf ?

[@armchairincomechannel]

I like cc ETFs, I hold plenty of them and have made many videos about them. They have their risks...as does every investment, so I don't all of my portfolio on them. They're great when the market is going sideways.

[@Bibhukalyan123]

What is your view about oxlc ? This one pays north of 18% and recently increased dividend.

[@armchairincomechannel]

Nice dividend but too much long term NAV erosion for my taste. Not saying its bad, I just prefer flat or appreciating NAV.

[@Keto_Mike]

What about CLM, theres another channel on here unconventional wealth ideas that invests in cornerstone because it drips at nav.

[@armchairincomechannel]

It's popular. The long term NAV erosion isn't a fit for me. But I appreciate others do the math on the high distributions making up for that.

[@johnspelman8976]

I see you're still showing aft in your portfolio. Did you let it roll into mfic

[@armchairincomechannel]

I sold AFT a while back because I don't want own MFIC. Perhaps you saw an old screen shot in a video that was describing something else. My current portfolio is available at: armchairinsider.beehiiv.com/subscribe

[@johnspelman8976]

@@armchairincomechannel Thanks:) Great videos, learning alot from them

[@zoyayt]

At what price would you say Main is reasonable? 🙏🏻

[@armchairincomechannel]

Difficult question. The long term answer has been....any price!!! In the short term, it's hard to say.

[@zoyayt]

@@armchairincomechannel I appreciate your reply 🙏🏻

[@Crockerfeller]

Happy Sunday to you, er i guess Happy Sunday to me, Monday to you :P

[@armchairincomechannel]

Good morning to you, and good evening to me :)

[@nickb.6726]

I own 2 of the 3…have not bought any MAIN because they don’t pay monthly. Another awesome video!

[@scottybones777]

Yes they do.

[@chrislindsay3104]

MAIN pays monthly and sometimes they pay an EXTRA dividend.

[@spooler24]

They've been paying monthly since I can remember. It's always a good idea to do your research... especially before posting on platforms for public consumption.

[@armchairincomechannel]

Glad you enjoyed it! (MAIN pays monthly).

[@martinweber202]

thanks for the reason why different sites have different yields

[@armchairincomechannel]

Happy to help