I am glad that you pointed out that it should only be a small part of a portfolio. Like you said, a lot of amateur investors can get into trouble chasing distributions. I learned that the hard way.
Best I can figure looking back to 07/08 because of the market crash and CLM using ROC to pay the dividend, they were selling assets at an extreme low to pay the dividend and since they no longer had the assets, the fund didn't benefit from the market recovery. That ROC is what crashed the stock price and is why it has never recovered
I have CLM in an IRA here in the States. Have made all my money back from my original investment, all monthly dividends from CLM go into the IRA cash account. I use those dollars to invest in other stocks or funds within this IRA. As long as CLM pays 12% or more on a monthly basis will keep holding CLM. Looks like another decent 2 to 3 years to invest. Thanks for this videio and the commentary.
Another interesting feature of the fund is that when you reinvest the distributions you are buying new shares at the funds NAV not the market price. Typically the fund trades at a large premium to NAV so the shares you are buying have a built in bonus to them. I have a small investment in CRF and my cumulative investment return is currently 122% over the last 2 and a half years. Pretty solid all things considered.
Not sure on that. I would assume it is the same for all investors, if you are reinvesting check the price the new shares were purchased at. That couple extra dollars per share adds up over time!
@@johnsmith-wt5dz Most American brokers participate in the DRIP at NAV. Some do it automatically while some, like E*Trade at market price unless you specifically ask for the NAV program through CLM.
With current RO I was able to grab some shares in upper 10s. I broke one of your rules though and it’s now 8% of the portfolio. At the price though, and with Canadian dollar being as high as it is I couldn’t pass up. May rebalance a bit if gets to mid 12s, but with the yield I’m inclined to just hold. Plus if there’s a potential divi increase that would be amazing. Here’s hoping market stays steady. Great video as always! Keep up the great work. You’re always quick with the info I check the channel daily.
@@PassiveIncomeInvesting Good point, from the video. I lt got me thinking deeper. So, should we sell them off after holding for 5-10 years because the share price has dropped significantly and they couldn't go backup like they used to be? Doesn't make any sense? Or does it? Because if the share price dropped, I got the dividends for all those years. And the dividends had just been coming out from my share prices I once bot, then I sold them? That way, it ends up I am losing money! What should I do when the share price been dropping after significant years? Switching to another stock? As you said, the fund manager gets pay because the fund is still there. Totally agree with it. But if the dividends just came out from my original investment, amd there won't be any upside, I basically consider a lost more than a gain. Now, I am confused. I started investing because I watched your video one day. Ever since, I watched every video from you and shared with all my friends. Now, what should we do after years? And I told my friends as well, we all follow your strategy too. Buy and hold.
Brian, may I ask is your CLM position in a trad IRA, Roth or non retirement acct? I have no Roth space left and am trying to choose between IRA/brokerage. TY
I was in this but it crashed, and after doing research I found that it bled cash. GOF, PDI both have high yields ( 9 - 10%) but don't bleeding cash every year.
The high yield is because they are distributing the assets (nav) back to you. The nav and hence distribution will decline when we get into a bear market.
Thanks for the discussion. I've been curious about CLM and CRF, an obvious question is, if it's dividend yield is so high both now and historically, then why wouldn't investors rush int to buy it? Also, do you know of a USA equivalent of your talk show? I like your show a lot but I reside in the US and trade in the US stock market only. Thank you again.
You have to take an active approach to Cornerstone and not a passive (set it and forget it) approach. You have to set the drip to NAV, which not all brokers participate in the NAV drip. I only know of E*trade and Fidelity, which do participate. You also have to sell all but 3-5 shares during the Rights Offering (RO) every year and buy back after the RO
the dividend payout ratio is 143.94%, my question is how do they manage that? I like the dividend for sure, just want to understand how do they make it. Thanks to anyone who can enlighten me.
If you look at the dividend history for this fund it has decreased its dividend per share each and every year for past 15 years except for 1 small increase for one year (this fund has had two 4 for 1 reverse stock splits over this period). That would mean I am making less income each year. I want dividends that grow or at least stay constant. Can't afford to lose income each year in retirement with this fund as my cost of living increases each year.
It was $270 (many reverse splits?) about 20 years ago so maybe paid say $40 in dividends at 2 per year and capital loss of about 230 and people like this type of investment.
Thanks for this… I recently bought CLM, thanks for explaining. Was wondering how this fund would respond during a market downturn? And thought about reducing my shares.
@@ddelmarsmith He meant, based on the 72 rule, a return of 17% generally doubles your money in 4.25 years (72 / 17 = 4.24). This assumes you reinvest every dividend. Note the 72 rule is more accurate for rates of return between 6% and 10% and should always be considered a rule of thumb.
@@MonkeySpecs301 It's a bit better than that, but your initial investment and your annual dividend drop year over year - I couldn't stomach this even for the yield. Anyone can deposit $1,000 in the bank and draw out $15 / month and call that 18% yield with 100% return of capital. That's not much different from what you're getting here. What's interesting is so many comments look to the equities this fund invests in - and it looks like a no-brainer, except the fund keeps losing money - why is that? Because they are just withdrawing cash from the fund to pay out the dividend. Where does that cash come from? From raises, and from selling the investments.
Maybe I'm missing something but it seems to me that if 63% (0.1166/0.1853 @10:17 mark in video) of the dividend is "return of capital" then you are just getting some of your own money back that you paid to buy the shares, right? So you would expect the NAV to decrease by a corresponding amount if the fund's stock portfolio remained at a constant value. But given that the average increase in the stock market, over time, is about 8%, plus some of the fund's stocks pay dividends to CLM, then the decrease in NAV of CLM over time would only decrease by 21% minus the stock portfolio appreciation + stock dividends. And if CLM's managers find that the net result is the NAV decreasing faster than they like, they can issue more stock through an offering to get an infusion of however much cash they think they need. What am I missing?
Very interesting fund fundamentals, from this video how we will find out the right offering for CLM on 2023. I watch this a couple times, great insight thank you.
@@PassiveIncomeInvesting Thanks Adrian, I wish you success and healthy always. I'm see your video about TSLY interesting, do you think they sustainable? Or will be the same like CLM giving up some NAV? 🙏
How should one deal with the rights offering of CLM/CRF ? I've seen in other videos that you have to be aware of when the rights offering is and that you must take some kind of action etc
I enjoy your videos. One recommendation is rather than focusing in on the CURRENT YIELD is focus in on the 5 year total return. Makes much more sense CLM pays out 1.92 per annum per share yet only has EPS 1.33. Do you see a problem here? Great current yield of 16% per annum, but is paying out more than earning so you lose share value over long term.
I’m an income investor that never sells , so no , total return is not my focus and will never be . That’s for growth investors who sell stuff . That’s the only way to realize the total return . My annual return is my average annual dividend yield because I don’t sell anything 😎
The question is really whether they can sustain paying this dividend. CLM used to pay $1.328 each month and has dropped to 0.18 per month now. Dividend has steadily dropped over the years. I think it is one of the worst investments you can make. Stay away.
I click like on every one of your videos :D I was into the passive investing style before I found your channel, but my options were quite limited to the ones from BMO & Global X. It was God's blessing for me to find your channel and saw that someone had done all the research I wanted to do but haven't yet. You won't know how excited I was :P Wish the best for your channel going forward, and for those who haven't picked up Adrian's research package, DO IT! It's worth it!
Someone mentioned that you can look at this like an annuity and that clicked for me. So although the long term trend is for the unit price and distribution to erode it doesn't matter. You should get your original investment back fairly quickly and then it can just sit there paying you distributions even if they keep slowly going down. I can see pros and cons to that depending on your objectives.
Exactly Yes but like I always say in my 6 points ... this is a special , extreme fund and you still need to invest intelligently . Clm , not matter how enticing should be a small part of your portfolio . For me it’s 3%
An annuity however is a guaranteed amount usually indexed to inflation which this definitely isn’t. With an annuity the payer assumes the risk, with CLM investors assume all the risk.
@@James_48 Higher risk higher potential gain. There are different types of annuities. They are not all fixed or tied to some metric but that is getting into the weeds further away from the subject.
Hi. I am new in Canada so my question might seem to be a little naive. I wanted to ask if all Canadian ETFs provide dividends? If there's any ETF that solely focusses on growth and doesn't provide dividend, then please let me know.
Thank you for your sharing this is helping me build out my portfolio as well. I am using a Vanguard brokerage and recently noticed that some of the Funds that you are investing are labeled as gray market or pink limited, which is not safe security, would love to see a video of you going over that. I am based in 🇺🇸
Hi Adrian from Europe !your new subscriber already.. it was what I was looking for your channel.. although us Europeans we have many restrictions on what we can buy.. for example we can't buy all the *YLD , fortunately CLM we can, but now it's price it's big premium about $14 so what price do you think it's a good entry point?
I noticed that in your updated RRSp portfolio, CLM makes up about 15% of the mix. Are you now more vested in CLM as a good dividend stock? Curious as to what made you change from being cautious on this stock.?
I understand you look at this as an income fund and say the appreciation of the stock doesn't matter but wouldn't your overall ROI be negligible or even at a negative if it only brings a roughly average dividend return of 12% or so and lose 75% appreciation over 10 years?
@@PassiveIncomeInvesting Curious what your response is to this: If the yield is 10% and you keep it for 10 years, BUT you are living off of that income like you are advertising in your channel (spending it every month to live), in 10 years wouldn't you be broke if the fund price has depreciated 75%+ over that time period??? Say you are retiring with this philosophy at the young age of 36 (which I am doing) with 1 million dollars, in 10 years id only have around 250k left!
Frank , this is my main portfolio … it’s not all I have . Please watch my next video that will be out this weekend. Just because I use the income to live, it doesn’t mean I spend all of it 😎 I invest regularly every month to keep building my income
So if s&p grows typically by 10% and pays 2% dividend on average your total return should be able 12%. This pays out 21% of it's asset which only grow 10-12%% so how has it not yet gone bankrupt? Couldn't you just do the same thing by investing in s&p 500 index and just sell 21% yourself?
@@PassiveIncomeInvesting no you missed my point. This thing pays you 21% of its assets that you use as passive income. So why can't you do that yourself after letting it grow 12%a year on s&p passive index
Wish I stayed in this stock. I just don’t understand what keeps it from going to low to force say a reverse spilt. In your 4 comment you explained that it makes sense that it dips on price. Comment 6 fund manger we’ll change fund to keep it alive. Maybe it’s that simple.
Comment 6 is just my speculation 😉 I’m assuming the fund manager will not let it go to zero , which it can with time if they give out 21% of nav every year but that’s just my personal opinion
It goes away with time after you get a lot of income . It’s paying my initial investment off quickly . That’s how I see it … so the more time goes on the more at ease you are
Hey Adrian, quick question with the ex div expiring today and a potential rights offering anytime now. What is you opinion or strategy for today and the next month or so?
Any idea what happened from the early days in 04 @$148 to todays @$11 and what it projects into the future? What would happen to the share price with a massive dividend cut or a missed dividend? Since it's such a stable (low) price at the moment, based on recent hostory, why not just try to "dividend harvest" it?
Actually I don’t ! Lol I’m not sure what there dividend policy was back then … was it also based on nav and reset to 21% of nav ? Not sure . All I know is that clm dividend will increase big time starting in 2022 of the nav days close to what it is now
If the declining price of the fund is a norm then you should work out the average rate of declining share price per year over the past 10 years and deduct it from the average rate of dividend distribution per year over the past 10 years to arrive at the average net dividend yield per year.
Yup like any other fund , and vice versa when it goes up . There is however a reduced growth rate because of the covered calls , that’s normal and why you get the high yield . You can’t have the best of both worlds ☹️ I wish tho
CLM Does not show a div payment on the TDA Think or Swim platform? Does it pay out a div or does in reinvest it so that you have to sell shares for income?
Because these are not set up as a common stock rather more like an etf they dont show the pmt. But will pay it just like a common stock@@PassiveIncomeInvesting
@@PassiveIncomeInvesting over the last 4 years I am guessing it paid $8 in dividends and it lost $6 in value. Eventually it goes low enough that no one wants to invest in it and then they will do a reverse split before it gets to $5 making it a penny stock.
@@PassiveIncomeInvestingThank you! I bought a lot more CLM and CRF today to lower my average price, and the Ex-Dividends date is on 13th. 🤞🏻🤞🏻and I will sell some after record date once the price is higher than today to lower the risk with high percentage of my portfolio.🤞🏻🤞🏻
Does anyone know how clm generates income from its holdings? I know it pays out based on nav, but clearly it’s generating money from these holdings. Is the fund manager buying low and selling high? Obviously dividends paid out by the held stocks go into the fund but there must be more to it. Any ideas?
Reading some of these comments makes me laugh. As someone who actually watches these videos from beginning to end (including previous videos that included this stock), you can tell who has not watched previous videos or their entirety. I added CLM some time ago knowing EXACTLY what I'm in for (and why) and it also is not a huge part of my portfolio - everything that Adrian has addressed in previous and this video.
Im not too big on fixed income but PIMCO is def. a leader in that sector. I think they are both in CEFD. They are like GOF but i would always prefer a diversified CEF fund like YYY, RIV or CEFD
@@PassiveIncomeInvesting If you look at the 10 year returns of PDI and PTY and they are both over 10% which are good even for fixed income and better than QYLD.
@@PassiveIncomeInvesting tbh i would love to trade options,selling covered calls and puts and benefit from dividends too,btw Income oriented with not too much volatility,pretty steady I personally like the BMos one,and XEI,but what about Ci first assets?
If we hold this fund in a cash account, does the income count as foreign income and get taxed fully for Canadians? Or is US fund ROC income still tax free? Thanks!
Hi I’m new. Even if the share price goes down will your income still stay the same or increase if they keep the distributions constant or increase them next year?
Your 4 item. It makes sense that the price goes down do to large Div. Ok simple but I don’t understand what keeps it from going to low then they do a reverse split yuck.
@@PassiveIncomeInvesting I don’t think they ever did a reverse split. It’s a concern of mine. But last time I looked at the charts I think I saw they did three forward 4 to 1 splits over the years.
@@PassiveIncomeInvesting Thanks for replying. We may disagree on that one. I hope your move has been good for you. It sounds like a great experience. I was in the Navy, and enjoyed the different lands. I hope the best, and thank you for posting.
@@PassiveIncomeInvesting You may be right, my opinion is unfounded (only based in the graph). I still prefer Brompton split shares funds, thanks to you. Best investment youtube channel btw
I am glad that you pointed out that it should only be a small part of a portfolio. Like you said, a lot of amateur investors can get into trouble chasing distributions. I learned that the hard way.
Best I can figure looking back to 07/08 because of the market crash and CLM using ROC to pay the dividend, they were selling assets at an extreme low to pay the dividend and since they no longer had the assets, the fund didn't benefit from the market recovery. That ROC is what crashed the stock price and is why it has never recovered
I have CLM in an IRA here in the States. Have made all my money back from my original investment, all monthly dividends from CLM go into the IRA cash account. I use those dollars to invest in other stocks or funds within this IRA. As long as CLM pays 12% or more on a monthly basis will keep holding CLM. Looks like another decent 2 to 3 years to invest. Thanks for this videio and the commentary.
Nice strategy ! Makes sense to me !
Another interesting feature of the fund is that when you reinvest the distributions you are buying new shares at the funds NAV not the market price. Typically the fund trades at a large premium to NAV so the shares you are buying have a built in bonus to them. I have a small investment in CRF and my cumulative investment return is currently 122% over the last 2 and a half years. Pretty solid all things considered.
That’s awesome ! Did not know that . It might only be for Americans ??
Not sure on that. I would assume it is the same for all investors, if you are reinvesting check the price the new shares were purchased at. That couple extra dollars per share adds up over time!
That’s the thing. I don’t drip it (reinvest)
@@johnsmith-wt5dz Most American brokers participate in the DRIP at NAV. Some do it automatically while some, like E*Trade at market price unless you specifically ask for the NAV program through CLM.
Looks like DRIP at NAV is for America, in Canada two major ones QuesTrade and WealthSimple purchases DRIP shares at Market price
2.56% of my portfolio...😃...time to buy some more!!! Thanks Adrian
With current RO I was able to grab some shares in upper 10s. I broke one of your rules though and it’s now 8% of the portfolio. At the price though, and with Canadian dollar being as high as it is I couldn’t pass up.
May rebalance a bit if gets to mid 12s, but with the yield I’m inclined to just hold. Plus if there’s a potential divi increase that would be amazing. Here’s hoping market stays steady.
Great video as always! Keep up the great work. You’re always quick with the info I check the channel daily.
Great video, about 6% of my portfolio, but always scared me. I'll probably turn of the DRIP and hold for more 5 to 10 years
That’s how you do it !! By that time you will make up all your money in dividends
@@PassiveIncomeInvesting What this mean? We shouldn't do the DRIP? Just hold for 5- 10 years?
Completely up to you ! I personally don’t drip
@@PassiveIncomeInvesting Good point, from the video. I lt got me thinking deeper. So, should we sell them off after holding for 5-10 years because the share price has dropped significantly and they couldn't go backup like they used to be? Doesn't make any sense? Or does it? Because if the share price dropped, I got the dividends for all those years. And the dividends had just been coming out from my share prices I once bot, then I sold them? That way, it ends up I am losing money! What should I do when the share price been dropping after significant years? Switching to another stock? As you said, the fund manager gets pay because the fund is still there. Totally agree with it. But if the dividends just came out from my original investment, amd there won't be any upside, I basically consider a lost more than a gain. Now, I am confused. I started investing because I watched your video one day. Ever since, I watched every video from you and shared with all my friends. Now, what should we do after years? And I told my friends as well, we all follow your strategy too. Buy and hold.
Buy and hold . The longer you do, the more it will make sense to you and these questions go away . Trust me , I’ve been there
Love CLM & CRF. Together makes up about 10% of my entire portfolio. ORC is my next fave (U.S.)
Are you cost avg down in all of them they are currently on sale
@@ENLFINANCE_Money I’ve owned them for years, So I overbought during the market drop to sell off higher shares later.... So, Basically, Yes. lol
I own orc too , great ticket name lol hard to forget . Is there an elf one too ? 😎
@@charlesamberwilliams1257 nice 👌, you must have a nice monthly flow of income. 💰
@@PassiveIncomeInvesting I believe so, it's a beauty supply coming with that ticker lol
I have loved Cornerstone forever! I once called them but didn't get through just to thank them for boosting my portfolio yield.
Brian, may I ask is your CLM position in a trad IRA, Roth or non retirement acct? I have no Roth space left and am trying to choose between IRA/brokerage. TY
I was in this but it crashed, and after doing research I found that it bled cash. GOF, PDI both have high yields ( 9 - 10%) but don't bleeding cash every year.
Have you seen the expense ratio on PDI??
They use leverage, which is like investing with margin . Do you get your margin for free ??😎
@@stephenadair8356 I know its insane lol
@@PassiveIncomeInvesting Nope and fair point! Thanks
Yup same with other leveraged funds , the mer is much higher
Good video. Just got some shares @ 8.44% premium.
Man! Your balance is amazing! Excellent video! Watch to the end guys!
Now it drops heavyly and it will have 1 for 3 rights offering , and required t o pay money for that .so what is the next?
Thank you again I watched this video every week. All the best Adrian and all the Canadian who support your channel.
Always been a fan of this stock, it's all I preach, as I make my monthly paying portfolio
The high yield is because they are distributing the assets (nav) back to you. The nav and hence distribution will decline when we get into a bear market.
This fund is just a fancy way to pay yourself from your own savings whist giving a few bucks to the fund managers. Horrible cult fund.
Meanwhile it’s beating the sp500 in the last 10 years …. Stop saying stupid crap in my channel .
Thanks for the discussion. I've been curious about CLM and CRF, an obvious question is, if it's dividend yield is so high both now and historically, then why wouldn't investors rush int to buy it? Also, do you know of a USA equivalent of your talk show? I like your show a lot but I reside in the US and trade in the US stock market only. Thank you again.
You have to take an active approach to Cornerstone and not a passive (set it and forget it) approach. You have to set the drip to NAV, which not all brokers participate in the NAV drip. I only know of E*trade and Fidelity, which do participate. You also have to sell all but 3-5 shares during the Rights Offering (RO) every year and buy back after the RO
the dividend payout ratio is 143.94%, my question is how do they manage that? I like the dividend for sure, just want to understand how do they make it. Thanks to anyone who can enlighten me.
If you look at the dividend history for this fund it has decreased its dividend per share each and every year for past 15 years except for 1 small increase for one year (this fund has had two 4 for 1 reverse stock splits over this period). That would mean I am making less income each year. I want dividends that grow or at least stay constant. Can't afford to lose income each year in retirement with this fund as my cost of living increases each year.
It was $270 (many reverse splits?) about 20 years ago so maybe paid say $40 in dividends at 2 per year and capital loss of about 230 and people like this type of investment.
Thanks for this… I recently bought CLM, thanks for explaining. Was wondering how this fund would respond during a market downturn? And thought about reducing my shares.
Buy and hold , don’t worry . You will understand after a few years …
Stumbled on video. I’m going to buy CLM.
17% annual dividend would double in 4 years, 3 months (excluding other expenses)? So, after 4.25 years, you're "playing with house money."
No - %yield would not double in 4 years, 3 months - that makes no sense
@@ddelmarsmith He meant, based on the 72 rule, a return of 17% generally doubles your money in 4.25 years (72 / 17 = 4.24). This assumes you reinvest every dividend. Note the 72 rule is more accurate for rates of return between 6% and 10% and should always be considered a rule of thumb.
but in the last 4yrs the nav has been slashed in half, so break even right?
@@MonkeySpecs301 It's a bit better than that, but your initial investment and your annual dividend drop year over year - I couldn't stomach this even for the yield. Anyone can deposit $1,000 in the bank and draw out $15 / month and call that 18% yield with 100% return of capital. That's not much different from what you're getting here.
What's interesting is so many comments look to the equities this fund invests in - and it looks like a no-brainer, except the fund keeps losing money - why is that? Because they are just withdrawing cash from the fund to pay out the dividend. Where does that cash come from? From raises, and from selling the investments.
Like that? I will be playing my house money after approx 5 years. Good to know!! It is very important. We all got to know that. Thanks
Maybe I'm missing something but it seems to me that if 63% (0.1166/0.1853 @10:17 mark in video) of the dividend is "return of capital" then you are just getting some of your own money back that you paid to buy the shares, right? So you would expect the NAV to decrease by a corresponding amount if the fund's stock portfolio remained at a constant value.
But given that the average increase in the stock market, over time, is about 8%, plus some of the fund's stocks pay dividends to CLM, then the decrease in NAV of CLM over time would only decrease by 21% minus the stock portfolio appreciation + stock dividends. And if CLM's managers find that the net result is the NAV decreasing faster than they like, they can issue more stock through an offering to get an infusion of however much cash they think they need. What am I missing?
I don’t think you’re missing anything 😎
Very interesting fund fundamentals, from this video how we will find out the right offering for CLM on 2023.
I watch this a couple times, great insight thank you.
They might not do one in 2023 it looks like . I guess the premium % wasn’t high enough
@@PassiveIncomeInvesting Thanks Adrian, I wish you success and healthy always.
I'm see your video about TSLY interesting, do you think they sustainable? Or will be the same like CLM giving up some NAV? 🙏
How should one deal with the rights offering of CLM/CRF ? I've seen in other videos that you have to be aware of when the rights offering is and that you must take some kind of action etc
Return of capital distribution would "bite" you when/if you sold the stock, right?
I enjoy your videos. One recommendation is rather than focusing in on the CURRENT YIELD is focus in on the 5 year total return. Makes much more sense CLM pays out 1.92 per annum per share yet only has EPS 1.33. Do you see a problem here? Great current yield of 16% per annum, but is paying out more than earning so you lose share value over long term.
I’m an income investor that never sells , so no , total return is not my focus and will never be . That’s for growth investors who sell stuff . That’s the only way to realize the total return . My annual return is my average annual dividend yield because I don’t sell anything 😎
The question is really whether they can sustain paying this dividend. CLM used to pay $1.328 each month and has dropped to 0.18 per month now. Dividend has steadily dropped over the years. I think it is one of the worst investments you can make. Stay away.
I click like on every one of your videos :D I was into the passive investing style before I found your channel, but my options were quite limited to the ones from BMO & Global X. It was God's blessing for me to find your channel and saw that someone had done all the research I wanted to do but haven't yet. You won't know how excited I was :P Wish the best for your channel going forward, and for those who haven't picked up Adrian's research package, DO IT! It's worth it!
Someone mentioned that you can look at this like an annuity and that clicked for me. So although the long term trend is for the unit price and distribution to erode it doesn't matter. You should get your original investment back fairly quickly and then it can just sit there paying you distributions even if they keep slowly going down. I can see pros and cons to that depending on your objectives.
Exactly Yes but like I always say in my 6 points ... this is a special , extreme fund and you still need to invest intelligently . Clm , not matter how enticing should be a small part of your portfolio . For me it’s 3%
An annuity however is a guaranteed amount usually indexed to inflation which this definitely isn’t. With an annuity the payer assumes the risk, with CLM investors assume all the risk.
@@James_48 Higher risk higher potential gain. There are different types of annuities. They are not all fixed or tied to some metric but that is getting into the weeds further away from the subject.
Great RRSP fund!!
i started adding during the dip. been selling off some of my underperforming tickers
Fantastic video, so glad you listen to your viewers! What will be the next video! :) how about RYLD?
Hi. I am new in Canada so my question might seem to be a little naive. I wanted to ask if all Canadian ETFs provide dividends? If there's any ETF that solely focusses on growth and doesn't provide dividend, then please let me know.
Great question, would also like to know this
Great video. I will be buying some of these shares shortly. Thanks.
I really appreciate the info!! I love passive income!! I'm a new subscriber and really excited to learn more!!
You love ❤️ passive income ?!? Me too! You’ve come to the right place !😎
What’s a right offering and how did it affect your stock
Thank you for your sharing this is helping me build out my portfolio as well.
I am using a Vanguard brokerage and recently noticed that some of the Funds that you are investing are labeled as gray market or pink limited, which is not safe security, would love to see a video of you going over that. I am based in 🇺🇸
Buy $10000 VOO or SPY and take out 20% from the account as income each year. same result. point is do you need the money now or save it for future?
Take out during a market crash too ??
Hi Adrian from Europe !your new subscriber already.. it was what I was looking for your channel.. although us Europeans we have many restrictions on what we can buy.. for example we can't buy all the *YLD , fortunately CLM we can, but now it's price it's big premium about $14 so what price do you think it's a good entry point?
Not right now unfortunately, there’s always other stuff out there 😉
I noticed that in your updated RRSp portfolio, CLM makes up about 15% of the mix. Are you now more vested in CLM as a good dividend stock? Curious as to what made you change from being cautious on this stock.?
Will CLM ever start rising again? - coming out of the downward staircase pattern? Will it get de-listed? What happens Then?
annualised return over the last five years 13.2% (includes dividends and capital appreciation) - correct me if I'm wrong thanks
Just treat it like an annuity, but better than an annuity. Your heirs still get what is left if anything happens to you.
Not sure it's the right time to get into this now at 16.3% premium. Still a good pick?
If you bought this years ago and it keeps decreasing dividend and share price then your YOC should be lower than current dividend.
Thank you for this video
I understand you look at this as an income fund and say the appreciation of the stock doesn't matter but wouldn't your overall ROI be negligible or even at a negative if it only brings a roughly average dividend return of 12% or so and lose 75% appreciation over 10 years?
If the yield is 10% and you keep it for 10 years there’s all your money back
@@PassiveIncomeInvesting Curious what your response is to this: If the yield is 10% and you keep it for 10 years, BUT you are living off of that income like you are advertising in your channel (spending it every month to live), in 10 years wouldn't you be broke if the fund price has depreciated 75%+ over that time period??? Say you are retiring with this philosophy at the young age of 36 (which I am doing) with 1 million dollars, in 10 years id only have around 250k left!
In that same scenario at the same depreciation in 30 years I'd essentially be dead broke.
Frank , this is my main portfolio … it’s not all I have . Please watch my next video that will be out this weekend. Just because I use the income to live, it doesn’t mean I spend all of it 😎 I invest regularly every month to keep building my income
Thanks for the video. It might be a good idea one day for you to put together a video on how ETFs can also go to $0.
They can’t … unless there is crap in them
So if s&p grows typically by 10% and pays 2% dividend on average your total return should be able 12%.
This pays out 21% of it's asset which only grow 10-12%% so how has it not yet gone bankrupt?
Couldn't you just do the same thing by investing in s&p 500 index and just sell 21% yourself?
Sure you can , but when do you sell ? And what do you reinvest it in ? I don’t want to deal with that so I’m free to enjoy my life fully
@@PassiveIncomeInvesting no you missed my point. This thing pays you 21% of its assets that you use as passive income. So why can't you do that yourself after letting it grow 12%a year on s&p passive index
Because I’m a passive , income investor and I don’t want to decide when and what to sell
thanks for your excellent video
The stock has risen twenty percent recently.
They now pay a 13% dividend
Yup ! But be careful it’s trading at a big premium . High demand !
Its not the highest yield there is slvo. this is a covered call play on silver
Slvo has a 35 % yield. You might do a video on it
Yeah those etns are nuts
Wish I stayed in this stock. I just don’t understand what keeps it from going to low to force say a reverse spilt. In your 4 comment you explained that it makes sense that it dips on price. Comment 6 fund manger we’ll change fund to keep it alive. Maybe it’s that simple.
Comment 6 is just my speculation 😉 I’m assuming the fund manager will not let it go to zero , which it can with time if they give out 21% of nav every year but that’s just my personal opinion
@@PassiveIncomeInvesting thank you for your reply, its
sure hard not to own a peace of this with that great div.
It goes away with time after you get a lot of income . It’s paying my initial investment off quickly . That’s how I see it … so the more time goes on the more at ease you are
Yikes...i got like almost 10% of it in mine and almost 10% of crf
Good buy even with the exchange rate? Are dividends are converted to cdn (I have a sdrrsp), I assume so, monthly? Love passive investing!
The dividends are in us currency 😎
its a shame, both my brokers don't offer this CLM. Pls look for some high yielding funds in Euro's. thx a lot.
Hey Adrian, quick question with the ex div expiring today and a potential rights offering anytime now. What is you opinion or strategy for today and the next month or so?
stay tuned for a CLM video where ill explain my opinion
What is the condition for CLM to pay a dividend ?
Any idea what happened from the early days in 04 @$148 to todays @$11 and what it projects into the future? What would happen to the share price with a massive dividend cut or a missed dividend?
Since it's such a stable (low) price at the moment, based on recent hostory, why not just try to "dividend harvest" it?
Actually I don’t ! Lol I’m not sure what there dividend policy was back then … was it also based on nav and reset to 21% of nav ? Not sure . All I know is that clm dividend will increase big time starting in 2022 of the nav days close to what it is now
If the declining price of the fund is a norm then you should work out the average rate of declining share price per year over the past 10 years and deduct it from the average rate of dividend distribution per year over the past 10 years to arrive at the average net dividend yield per year.
Nah that’s nonsense
@@PassiveIncomeInvesting What are the reasons for the declining share prices? Actual capital losses of its underlying assets??
Yup like any other fund , and vice versa when it goes up . There is however a reduced growth rate because of the covered calls , that’s normal and why you get the high yield . You can’t have the best of both worlds ☹️ I wish tho
Would you take a Heloc, now that the rates are so low and considering that you can use the interest pay on the Heloc to reduce your taxes.
Nope , I personally would never borrow to invest , no matter how low the rate
if divvy set to increase next yr then we should expect the nav to decline even more right? What gonna happen when nav is close to zero?
The world will come to an end of course lol 😎
Hi, Some Amazing Info. Thanks will contribute this month towards this stock.
Is Canadian Pacific Railway a good buy as -it is down 72.37%
CP actually just split five ways, so it isn't down. As for whether it's still a good buy at this price, I am not sure, though.
Are you still in love with this stock? Trading at +17% above NAV .... what do you see coming ?
i hold in my non reg account . yes 15 % tax .. thats ok with me its not significant .. i get big divs
Exactly!
Would you rather get into FFN or CLM?
Can’t answer that bud , it depends on many factors …
CLM Does not show a div payment on the TDA Think or Swim platform? Does it pay out a div or does in reinvest it so that you have to sell shares for income?
It has a monthly dividend
Because these are not set up as a common stock rather more like an etf they dont show the pmt. But will pay it just like a common stock@@PassiveIncomeInvesting
It will also drop about 10% or more per year. They are taking your money and returning it back. No company can sustain more than 5 to 7%.
That’s a myth dude , you got brainwashed
someone who didnt watch the video . sigh
@@blanksy_- It has dropped 35% from 2017 (17.50) and the s&p is up 100% in the same period.
@@PassiveIncomeInvesting over the last 4 years I am guessing it paid $8 in dividends and it lost $6 in value. Eventually it goes low enough that no one wants to invest in it and then they will do a reverse split before it gets to $5 making it a penny stock.
@@PassiveIncomeInvesting I guess I am. It peaked at $270 around the end of 1999 so it has been a great investment.
Down more than 20% now, please let me know if you still hold and buy more at this moment?
Yes... the monthly income won;t stop. What;s the alternative? Sell at a LOSS? Why would you ever do something like that?
@@PassiveIncomeInvestingThank you! I bought a lot more CLM and CRF today to lower my average price, and the Ex-Dividends date is on 13th. 🤞🏻🤞🏻and I will sell some after record date once the price is higher than today to lower the risk with high percentage of my portfolio.🤞🏻🤞🏻
Cornerstone Strategic Value Fund, Inc. Announces the Suspension of its Rights Offering... Is this good or bad Adrian?
Neither
Does this drip at nav in Canada?
Please what about GLQ and GLV
Does anyone know how clm generates income from its holdings? I know it pays out based on nav, but clearly it’s generating money from these holdings. Is the fund manager buying low and selling high? Obviously dividends paid out by the held stocks go into the fund but there must be more to it. Any ideas?
I’ve read that they are an active manager so it means they do trade to make profits
THE DOWNWARD PRICE: Will it get de-listed? When happens THEN?
NOT THE FUND, but the STOCK PRICE.
Reading some of these comments makes me laugh. As someone who actually watches these videos from beginning to end (including previous videos that included this stock), you can tell who has not watched previous videos or their entirety. I added CLM some time ago knowing EXACTLY what I'm in for (and why) and it also is not a huge part of my portfolio - everything that Adrian has addressed in previous and this video.
THANK YOU!💡
What do you think about PDI and PTY? They have been performing well
Im not too big on fixed income but PIMCO is def. a leader in that sector. I think they are both in CEFD. They are like GOF but i would always prefer a diversified CEF fund like YYY, RIV or CEFD
@@PassiveIncomeInvesting If you look at the 10 year returns of PDI and PTY and they are both over 10% which are good even for fixed income and better than QYLD.
What about the next 10 years ?
isnt that 1.86% expense ratio scary? that seems so high.
In your opinion which are the safest canadian etfs? Top 5
Depends on what you want ... growth , income ?
@@PassiveIncomeInvesting tbh i would love to trade options,selling covered calls and puts and benefit from dividends too,btw Income oriented with not too much volatility,pretty steady
I personally like the BMos one,and XEI,but what about Ci first assets?
Yes those are awesome . High yields
If we hold this fund in a cash account, does the income count as foreign income and get taxed fully for Canadians? Or is US fund ROC income still tax free? Thanks!
Great question ! I think it’s still tax free. It I’m not 100% sure however
yes i would like to know that too
Watched and liked, thanks Adrian! I do have a small position.
Hi I’m new. Even if the share price goes down will your income still stay the same or increase if they keep the distributions constant or increase them next year?
I explained it in the video
@@PassiveIncomeInvesting I missed that part I guess.
The income is set at 21% of the nav and reset every year basically
Your 4 item. It makes sense that the price goes down do to large Div. Ok simple but I don’t understand what keeps it from going to low then they do a reverse split yuck.
Reverse split ? When did they do that ?
@@PassiveIncomeInvesting I don’t think they ever did a reverse split. It’s a concern of mine.
But last time I looked at the charts I think I saw they did three forward 4 to 1 splits over the years.
Im thinking downward price is good when you drip it.
Sure !because it lowers your book price
All these folks out there that are div growth people they say they are bad but they all hold it
And they say money can’t grow on trees 😂
🌲 💵
I was gonna invest 50k in it
Would u invest in reality O
Do a video on it please
On the us market I like ra for real assets
Another great video like always 👍 what is the equivalent in CAD$ ?
You mean something similar on the Canadian market ?? Definitely eit !!
@@PassiveIncomeInvesting Ok thanks 👍
Np ! Check out my previous video on eit 😀
@@PassiveIncomeInvesting i watch it thanks always great video 😀
but smart to have both . and cad$ is strong now to the US . so its a good buy
So, in the end, it gives back your money.
Ummm not really , what if you hold it for 10+ years making over 10% yield a year ? You would have paid yourself back Already
🙌
I hv 5000k for year where can I invest suncor or clm still confuse???
??
@@PassiveIncomeInvesting
Suncor or clm
A well diversified portfolio
Do you pay witholding tax in a RESP?
Yes. 30% unless you fill W-8BEN and then it's 15% for an RESP. So it would lower it to about 14.5% yield give or take
Yes
i had no idea canadians can buy american funds
3 analysts rate as avoid .from analyst..clm fundamentals are weak and a turnaround is unlikely.dividend will get cut
In my 10 years of investing I’ve never looked at analyst ratings . Don’t you know that’s all nonsense ? I guess you don’t watch billions lol
@@PassiveIncomeInvesting why do you always mock people who disagree with you? I'm getting sick of it.
Because I’m a funny guy . I just tell the truth . Analysts are a joke so they should be mocked
@@PassiveIncomeInvesting agreed .. so much mis information out there .. ditto vax
imagine listening to analysts
Also Second :D
Expense Ratio
2.01%
First
The tax treatment of the fund tells the whole story of the returns. Return of capital is exactly that not income.
Here we go another expert on roc . Please watch my roc video. Roc is still income , don’t be silly 😝
Would you mind doing an update before Jun 10, 2022?
i got a few requests but i feel there isn't much of an update to talk about. RO offerings are pretty much annual and routine.
@@PassiveIncomeInvesting Thanks for replying. We may disagree on that one. I hope your move has been good for you. It sounds like a great experience. I was in the Navy, and enjoyed the different lands. I hope the best, and thank you for posting.
T minus 12 days
@@PassiveIncomeInvesting LOL
buy high, sell low
Buy and never sell
@@PassiveIncomeInvesting You may be right, my opinion is unfounded (only based in the graph). I still prefer Brompton split shares funds, thanks to you.
Best investment youtube channel btw
🙏