RE:RE:Whats with the decay?
That is exactly correct. Without a bull market the NAV has to slowly erode as the excess is paid to the commons. However with a bull market there is plenty of excess NAV and the payouts look secure. I think that this is pretty much the same with all of the splits that I follow. They are great when the market, or more correctly the sector that they invest in, is rising, but without that, they become very risky. The trick is to anticipate an oversold sector and buy the commons before the sector turns around. I'm thinking that Utilities, especially Telco's look like they should start to benefit from declining interest rates. However, the only split that I can find that focuses on utilities is the Middlefield IS. Its holding are pipelines, REITS, Power and BCE for the Telco. It's trading at a pretty good discount to it's last posted NAV.