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You Can Capture A Dividend Above 5% And Still Enjoy Stock-Market Growth: (GRX)

TedTed
in Fund Discussions
FYI: A 5% yield is difficult to come by these days, even if income is your only objective. But the Gabelli Healthcare and Wellness Trust has a distribution yield above 5% and also pursues long-term growth.

Jeff Jonas, who co-manages the fund, described his investment strategy and spoke about several representative stocks in an interview.
Regards,
Ted
https://www.marketwatch.com/story/you-can-capture-a-dividend-above-5-and-still-enjoy-stock-market-growth-2019-04-17/print

M* Snapshot GRX:
https://www.morningstar.com/cefs/xnys/grx/quote.html

Comments

  • rforno
    edited April 2019
    That CEF has some weird things in there - such as a few cereal companies and a soy sauce company??
  • Old_JoeOld_Joe
    So what's wrong with a little soy sauce on your cereal?
  • rforno

    Hey if a person likes it, who am I to condemn it? Each to their own!

    Speaking of oddities, I hate ketchup and prefer using BBQ sauce for ketchup-y purposes.
    Old_Joe said:

    So what's wrong with a little soy sauce on your cereal?

  • catch22catch22
    edited April 2019
    Part of this CEF distribution in 2017 was return of one's own capital invested.

    Being curious....., the below 3 healthcare related were chosen, for about 5.5 years of compare.

    GRX FSPHX FHLC FSMEX compare chart starting Oct. 2013

    GRX has performed well during the past 3 week healthcare whack. It appears they are able to use a percent of the money for derivatives functions; and have it right at this particular time frame.

    However, we remain a total return investor; not for the yield/distribution function.
  • BenWPBenWP
    I am aware of other healthcare CEFs that provide a similar stream of dividends, not unlike equity-income funds. BME is the most successful while HQL and THQ (both Tekla) have steady distributions but lousy price appreciation. The CEF structure seems to be favorable to this regular (monthly or quarterly) payout; I believe shareholders and activists have put pressure on CEFs that trade at chronic discounts to adopt distribution policies in response. @catch22 makes a valid point that can apply to CEFs and MLPs: your distribution may be the very money you invested in the fund.
  • TedTed
    edited April 2019
    @MFO Members The thrust of the article was to focus on a fund in the healthcare sector that had outstanding yield with reasonable capital appreciation. The poster chose to compare GRX strictly on capital appreciation bases totally is unfair !
    Regards,
    Ted

    P. S. GRX yield has been income with no capital gains or ROC for the last two years.
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