I love buying dollar bills for $0.80. Of course, you don’t find many chances like that in the stock market. Whenever such a great deal arises, investors quickly bid up the price of shares. But one of these opportunities has just cropped up. And it just so happens to be in one of my favorite industries for the next 10 years.
This deal comes from a unique type of security called a “closed-end fund.” Closed-end funds have one feature that separates them from other types of investments: they sometimes trade for large discounts to their real values. Supply and demand determine the market price for units. As a result, these funds often trade at a discount (or a premium) to their liquidation value. And once in awhile, these discounts get quite substantial. That’s when I take notice. We have that situation now with a closed-end fund in the energy business, the Cushing MLP & Infrastructure Total Return Fund (NYSE:SRV), also known as the Cushing MLP Total Return Fund.
Source: Income Investors
Related Articles:
- 5 Dividend Stocks To Beat The Wall Street Giants
- A Disciplined Approach To Dividend Growth Stocks
- 3 Low Beta, Higher Yielding Dividend Stocks For The Next Downturn
- 6 High-Yield REITs With Growing Dividends
- 26 Income Securities For A Well-Rounded Asset Allocation
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
High dividend yields are harder to find lately, given the long-running stock market rally. But that scarcity doesn't mean investors have...
-
One little-known tax loophole allows Americans to collect large, growing distribution checks from the government. And investors can begin ea...
-
The U.S. boosted tariffs on $200 billion worth of Chinese goods from 10% to 25%. The markets had expected this to be the week that this deal...
-
Every investor needs a security blanket -- that piece of the portfolio that needs no attention and doesn't keep you up at night. Busines...
-
The one knock against this midstream company is its higher risk profile compared with its peers. It has been working to address that issue b...
-
Technology is the alchemy of the stock market. It is where companies turn worthless silicon into incredible new and expensive gizmos and dev...
-
Utility stocks were supposed to be yesterday’s favorite investment. The theory regarding utility stocks was simple: Robust economic growth c...
-
Just like stocks can be expensive, REITs can also be a bit pricey. But rather than use a price-to-earnings ratio, the best way to look at RE...
0 comments
Post a Comment
Post a Comment