I was thinking of taking some out of PL8 and into CVF just for a...

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Cabbie

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17/10/19

16:00

Post #: 40934987
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Originally posted by lazxster: ↑

I like it, I prefer more consistent predictable yield. I was disappointed last February with the low dps, which was below FY18.
It is also evident that they started to take more active positions; combined with fully franking and the claims that we target at least 5.5c in 2020, plus we have credits lasting for a few more years I can see some modest upside or at least support around $1.

I was also considering PL8, as my almost retired soul starts preparing for living off income in a few years.
But I think the drawbacks of PL8 are that it invests mainly in large/mid caps and is trading to a respectable premium. Also, too focused on ASX stocks. CVF adds some extra diversification value, as I believe most income investors should already hold many of PL8's stocks in their portfolios already (I know I do).

I think PL8 is good value below their offer price ($1.10), but looks like it's not headed that way anytime soon); so I'll be a happy CVF buyer for now at $1.

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I was thinking of taking some out of PL8 and into CVF just for a bit of diversity but the sp drop in recent days just pulled me up a bit - I can't find it now but I got the impression the dividend paid by PL8 was flexible and percentage based, hopefully up more than down, whereas CVF is a definite 5c. no matter the sp. I'll have to some more checking.

My move into PL8 and these structured instruments was a bit rushed and not long in the planning as I needed to escape that RFF debacle and luckily I got out there near a recent top.

CVF Price at posting: 99.5¢ Sentiment: Hold Disclosure: Not Held
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