ADX broke into my lineup too.
Curious to understand why you added ADX? Was it because of the discount? Long term performance? Something else?
+1. I asked about this before because several users are buying in. I never got a good answer.
Maybe we will get lucky with an answer?
I added it after someone else posted about it and researched. It is an equity cef fund, no leverage, established Oct. 1st 1929. Its price is at discount to NAV, but less so than in the past. It pays a distribution of 8.88%, virtually never any ROC and has excellent total returns throughout many periods including long term. See e.g. Morningstar:
Thanks, I did some research on this security after I posted my request to you. I did not see the previous analysis on this. I was curious as it is an equity CEF and those may get hammered in a market downturn (right?). I'm new to CEF investing and looking to you seasoned CEF investors for words of wisdom.
Yes if equites go down it will go down. It is a cef but not leveraged so I have no predictions as to whether it will go down more or less if equities decline. Its price correlation to the S&P (TR) per cefdata.com is 95% vs. for instance PDI which has a 61% correlation to S&P (TR) per the cefdata.com.Thanks, I did some research on this security after I posted my request to you. I did not see the previous analysis on this. I was curious as it is an equity CEF and those may get hammered in a market downturn (right?). I'm new to CEF investing and looking to you seasoned CEF investors for words of wisdom.
Thanks, much appreciated.
I dipped my toes into ADX in April 2025 @$18ish -really more luck than wisdomThanks, I did some research on this security after I posted my request to you. I did not see the previous analysis on this. I was curious as it is an equity CEF and those may get hammered in a market downturn (right?). I'm new to CEF investing and looking to you seasoned CEF investors for words of wisdom.
. ADX is supposed to pay a minimum 2% quarterly distribution.
Thanks, I am looking for an equity fund to compliment my SCHG and SCHD funds. This looks pretty good to start a position in.
| Declared Date | Payable Date | Ex Date | Distrib Amount | Income | Long Gain | Short Gain | ROC |
|---|---|---|---|---|---|---|---|
| 4/21/2025 | 5/30/2025 | 4/28/2025 | $0.4600 | $0.0500 | $0.4100 | $0.0000 | $0.0000 |
| 1/15/2025 | 2/28/2025 | 1/27/2025 | $0.4700 | $0.0600 | $0.1900 | $0.1200 | $0.1000 |
| 11/14/2024 | 12/23/2024 | 11/22/2024 | $1.9600 | $0.0400 | $1.6200 | $0.3000 | $0.0000 |
| 7/18/2024 | 8/30/2024 | 8/2/2024 | $0.4400 | $0.0400 | $0.4000 | $0.0000 | $0.0000 |
True. I recived my first divi and it was classified as cap gains! Different.....
They do have a lot of tech stocks that are not known for paying high div rates.
ADX’s underlying stock holdings don’t pay dividend yields anywhere near 8.0% a year, so the distribution has to come from somewhere. That is price appreciation (and potentially some return of your own capital, over time).
Right, you can check out the financial highlights section of the annual. Equity dividends are insufficient to generate even remotely competitive CEF income --- so all equity CEFs have to trade for YOUR dinner. Most have done very well at this in the great equity markets of recent years, but it is a very different strategy than bondish income CEFs employ.
Update.
Hi. I modestly reduced PIMCOs, bought smallish positions in DX and AGNC, and have a little cash. While many PIMCOs seem to be going flat, DX appears to be breaking out of a sidewa6s triangle and AGNC shows no close overhead resistance. WDI may be stalling at a multi-month downtrend line. I'll be interested if it breaks above. Also hanging onto KIO because of bullish chart with no resistance.
With all my income investing shenanigans, I have now added about 15% to our total income since the first of the year, but reduced our taxable income by almost $100k, mainly as the result of getting rid of taxable investments in our taxable account and upping our income in deferred accounts.
