RE:Looking at investing in this HoldingVERY risky if you are getting close to retirement. These types of split funds pay out that high yield by relying on capital increase in the underlying fund in order to earn the income needed. They also buy and sell covered options on those underlying stocks.
There is, however, a hard limit. If the NAV per unit falls below $10 in any month, no Dividend will be paid for that period. We went I belive 14 months during 2020/2021 without dividends. During that time, naturally enough, the unit price falls dramatically, as low as the low $3 level at one point.
As long as you can wait for the stock to NAVs to climb back up to payout levels, the high dividend can make up for the montsh with no dividend quite quickly, but if you need income NOW, you'b be stuck in a stock you can't sell except at a loss, and no income.
Many people on these boards are day trading, and there are often ways that you can day trade and earn a profit no matter which way a stock is heading, but it's not what you would call a safe retirement product, its more speculative.