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Selling Off Cornerstone

January 3rd, 2007 Sphere: Related Content

With Cornerstone (CLM: Chart, Y!) being as top heavy as it is, I’ve started to slowly sell off some of my holdings, dividend be damned.

In fact, I’ve reduced my Cornerstone holdings by nearly 50%. Partly because I need to diversify, and partly because I’m worried about the effect of a 100% ROC statement on last years dividends.

I like the idea that the dividend is reinvested at the NAV, which gives you an additional 60% return on your weighty monthly income, but as the old saying goes… if it seems too good to be true.

I’m just waiting for the train to derail.

Disclosure: I own shares of CLM

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Investing, Stock Thoughts

  1. Mike
    January 4th, 2007 at 01:19 | #1
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    Good for you..

    CB (whoever he is ;-0) makes a good argument for selling. Smart move to take the profits while you can.

  2. Grant
    January 4th, 2007 at 19:28 | #2
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    I think there is more risk to CLM now than there has been before. You’ve got to take some risk off the table when you’re up, dividends or no dividends.

    -Grant

  3. Pablo Americano
    January 11th, 2007 at 22:03 | #3
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    I M not a fan of CLM. There’s something out of balance with that CEF. Don’t get greedy with those divies!

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