Selling Off Cornerstone
January 3rd, 2007 by Grant in: Investing, Stock ThoughtsWith 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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January 4th, 2007 at 1:19 am
Good for you..
CB (whoever he is ;-0) makes a good argument for selling. Smart move to take the profits while you can.
January 4th, 2007 at 7:28 pm
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
January 11th, 2007 at 10:03 pm
I M not a fan of CLM. There’s something out of balance with that CEF. Don’t get greedy with those divies!