A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Husk, At yesterday's $8.04, ACG's now back to yielding just above 10%. CHY still needs to drop about another dollar to achieve that yield.

10% could be perceived as at least a reasonable place to start accumulating. As Bernie G. would remind us, probably the NAV of these two funds is dropping faster than the share price. This means they are probably both selling at a "premium" to NAV right now. This will continue as long as there's downward pressure on high yield devices. So, it makes sense to pick a target yield and then start the ball rolling. AIM will take care of the gyrations afterward.

The rule of thumb is that when interest rates are rising, the NAV and share price are falling (and visa versa). The NAV is usually the hare and the price per share follows.

There's always some dividend reduction risk, but in general that part of the equation should be reasonably stable. Be aware of it, however.

Best regards, Tom