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MFS Charter Income Trust V.MCR


Primary Symbol: MCR

MFS Charter Income Trust (Fund) is a diversified closed-end management investment company. The Fund’s investment objective is to seek high current income, but also considers capital appreciation. The Fund primarily invests in debt instruments. The Fund also invests in corporate bonds of the United States and/or foreign issuers, United States government securities, foreign government securities, mortgage-backed securities and other securitized instruments of United States and/or foreign issuers, and/or debt instruments of issuers located in emerging market countries. It invests in a range of fixed income sectors, such as high yield corporates, emerging markets bonds, investment grade corporates, Non- United States government bonds, commercial mortgage-backed securities, mortgage-backed securities, collateralized debt obligations, municipal bonds, asset-backed securities and United States treasury securities. The Fund's investment advisor is Massachusetts Financial Services Company.


NYSE:MCR - Post by User

Comment by longrun86on Aug 26, 2021 7:37pm
354 Views
Post# 33774080

RE:What if....

RE:What if....

My view is that Macro will have substantially more capital then it needs by the end of next year maybe as much as 1.50 per share.
 

If Management doesn't see the ability to deploy that cash at appropriate return ratios then it should return the excess portion.

The industry is volatile so it should keep a bit of a cash cushion for a rainy day and a regular dividend might not be appropriate for all conditions.

At the end of 2022 I can see a Special Dividend of at least $1 as a desirable outcome and also a share buyback for 10% of the shares outstanding. It also feels appropriate to redeem the Prefered Shares.

It would be nice to see some commentary from analysts to this affect and what their prediction might be. 

Sincerely,

LR

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