RE:RE:RE:RE:Under the radar income fund...wolverine99 wrote: Historically FTN has had a pretty good track record of Divvy payouts, one suspension of 18 months many years ago is the only real bad blemish. For whatever reason the appetite to pay the big premium over NAV seems to be more of the norm than exception. Great while its there, ride the roller coaster!!!
My problem with FTN is actually the high yield.... it makes sustaining the distribution to the common shares more difficult. Particularly if we see a sideways market for banks in North America in the coming months. Today it looks like nothing but blue sky.... but if the last 3 months of 2018 are any indication.. we could easily see some stormy skies ahead again.
The NAV today for FTN likely right around 15.25 for the units, and at the end of the month they pay out about 17 cents in distributions.
50% premium is more than a little rich for me, and even FTN hasnt seen this kind of a premium in its history when the NAV is just over 15$ for the units.