Saturday, 3 December 2016

53. Cash-or-Trash #4 Madison Covered Call & Equity Income A

Having set out my order for Qualcomm should not put me to rest and wait. The search for contributors to my dividend portfolio continues. Another relatively steady longshot in the NASDAQ list that I stumbled across:

In detail: Madison Covered Call & Equity Income A.’s description of the fund (dated from 2014) it held a dividend yield of 5.48%. Quite reasonable.

Quick chart:

Share price
Dividend / yield

Also here, the yield is not particularly high. However, it’s in the higher regions of other “safer”classed companies. I call these “safer” for obvious reasons. We’re still gambling our way through the day. One thing that worries me is: why did MENAX quit on dividends back in 2015?

A search along the corporate website (click logo above) brings us on the path of another subsidiary of the Madison group: Madison Dividend Income Fund Class Y short: MUTF:BHBFX. Where, also here, dividends were cut from one year to the next.
Past dividend performance was strong.
Looking at the graph of MENAX, this might be a buy period coming on.
The website gives a transparent view on what stocks are in their portfolio.
Not a word to be found of reviving dividend strategy…?  From the semi annual shareholder report: “The fund seeks to produce a high level of current income and current gains generated from option writing premiums and, to a lesser extent, from dividends.”

Not seeing any news about Madison getting back into dividends. Might be a good thing for speculating. But for now, I’m not blown away by the little information available. It might even be a wiser decision to stay on the path of the Nasdaq100 list for now? Question here is: is the path a safe place or is that ultimately leading into even darker places?

No comments:

Post a Comment