It's Been Really Quiet

Where Are All the Special Distributions?

With only two weeks left in the year and markets making record highs, why haven't there been more special distributions announced? Only three so far this year? That's really odd. Or is it?

CEF Special Distribution History Since Mastery Inception in May 2020

I remember not long ago, it seemed as if funds were issuing special distributions quite frequently. Did I imagine this? Stirring up my curiosity, I thought I would do something I should be surprised I haven't done yet. Go over the special distributions' history.

There have been 71 recorded distributions since 'CEF Mastery's' inception in 2020. An average of about 18 special distributions a year, except there are almost none this year.

Looking at the numbers above, it would be no surprise that 'CEF Mastery' has to concede victory to non-qualifying funds, after all, there's usually a lot more of them. What's fascinating is that despite non-qualifying funds surpassing 'CEF Mastery' in total special distributions (63 vs 8), 'CEF Mastery' qualifying funds 11.3% of total special distributions make up a whopping 36.1% of the dollar amount of total special distributions ($7.28 vs $12.86). That's pretty impressive.

What's even more interesting is that the bulk of special distributions from non-qualifying funds were made in the year 2022 when the S&P dipped well into bear territory, going as low as -27%, and finishing the year out at a -18.1%. There were no special distributions among 'CEF Mastery' qualifying funds in 2022.

The year 2022 also happened to be the same year with the most non-qualifying closed end fund distribution cuts at 344, equaling -$27.65 (or -$2,765/yr on a hypothetical 100 shares). Adding back distribution increases for non-qualifying funds of $19.78 (or $1,978 on a hypothetical 100 shares), that left a net negative distribution record for non-qualifying funds at -$7.8668 (or $786.68 on a hypothetical 100 shares).

Conclusion

Anyway, back to my whole point, other than 2022 and 2023, it appears that special distributions aren't as common as I first thought.

Another thing I just learned as well, a closed end fund may throw you a bone in the form of a special distribution once in a while, but with 'CEF Mastery' special distributions, there's meat on them bones. The average special distribution for a 'CEF Mastery' qualifying fund is $0.910 compared to only $0.204 for non-qualifying closed end funds.

Recent Additions

These additions will appear in this week's weekly reports for both programs.

'CEF Mastery'

'ETF Mastery'

I had to scour the web for this one. (STK)'s distribution is not being correctly reported across most platforms and the release has not been posted to the fund's website as far as I can tell. I posted a link below but use caution. I've never heard of this website so I can't vouch for its security, but I had no issues with it.

Columbia Seligman Premium Technology Growth Fund Announces a Special Fourth Quarter Distribution

Distribution breakdown for (STK) should be as follows:

Regular - $0.4625 + Special - 2.8044 = Total Distribution $3.2669

BDC Scorecard (Link Bottom of Page)

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The 'Divi-X' System High Yield Portfolio Performance

This portfolio was created solely for the purpose of this weekly update. It is real money. It is intended for informational purposes only.

Inception date: 07/19/23

Portfolio performance as of Today @ 9:38 a.m. est. Distributions are 'Not' reinvested.

The 'Divi-X' high yield portfolio is an aggressive use of the 'Divi-X' system. There are more conservative uses of the 'Divi-X' system that can have a very satisfying result on your returns as demonstrated in the following video.

The 'Divi-X' System - Dividends on Steroids

The 'Divi-X' system utilizes leverage and can be considered very risky. Use at your own risk! The 'Dividend Times' makes no claim that using the 'Divi-X' system will outperform the market.

I am in the process of creating a worksheet of 'The 'Divi-X' High Yield Portfolio' holdings which I will eventually be posting here as a download for transparency. It will go into detail about positions held, why they were sold, and any other pertinent information. That info is too lengthy to post every week in a newsletter.

Feel free to send me questions or comments. Have a wonderful weekend.

Lee

TheDividendTimes@outlook.com

803-659-1232

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