CLM: 5 Key Factors you MUST KNOW Before Investing + WHY I SOLD ALL MY SHARES! CLM Alternatives

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00:00 Intro
01:50 Key Factor 1: CEF
05:53 Key Factor 2: Composition
08:04 Key Factor 3: Dividend Policy
11:37 Key Factor 4: Rights Offering
16:54 Key Factor 5: DRIP Policy
20:28 Why I sold CLM + CLM Alternatives
24:28 What did I BUY Instead?

MISSION:
Help everyday people to invest on their own, in order to create their own source of Passive Income to enhance their quality of life and reach Financial Independence

GOALS of this Channel:
1) To share my Personal Investing Journey & Strategy with the world. Everybody needs to make their own investing decisions. I am NOT against any style of investing and I will NEVER claim my Investing strategy is the “best”; its the best FOR ME

2) Educate you about Income Oriented Investing with a particular focus on Covered Call ETFs listed on the Canadian & U.S. Stock Markets

DISCLAIMER:
The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adriano Starinieri is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adriano is not responsible for investment actions taken by viewers.

#passiveincome #investing #dividendincome #financialfreedom #livingoffdividends #covered call #high yield #income

[FloridaBoyBushcraftSurvival]

So the trick is to 1) DRIP at the NAV. Then 2)sell 99.9% of your shares just before the rights offering, wait a month for the RO to expire and the price to fall. Then 3) pile back in at a lower price and 4)DRIP at the NAV until the next RO. You can accumulate a lot of shares this way and grow your investment significantly. Make sure your broker does the DRIP at NAV though, Vanguard does NOT but ETrade DOES...

[Soupy]

Getting the stock on DRIP at NAV price would be better than retail price for sure. Even so I'm still getting a 17.53% yield which is better than SPYI 12.10% & JEPI/JEPQ 10% yields. Plus, the latter 2 are in HYLD, which I own a lot of. Plus, I'm not dripping the stock anyway. Those are my 3 reasons for staying with CLM until something else I see I can buy at a discount and yields me the same monthly income.

[timtellers]

CLM is my favorite fund to invest in, I have 1062.3 shares now. I first invested in it in Feb of 2021. I rode it down in the red pretty bad just recently got back to the green but I love the dividend so can’t complain!

[keithcooke]

I think I just learned more about closed end funds in this one video than all the rest combined. I love CLM but hate that it doesn't buy at NAV, at least I'm saving the 9.99 that TD charges as I am dripping. Still gonna hold

[efullname]

I like this kind of review, concise clear direct to the point, and you repeat important points. Bought CLM after last RO so my yield is 16%, but the 15% tax deduction every month is a bummer holding in TFSA. Just waiting for price increase then i'll swap with Canadian listed stock.

[dantbow]

Thanks for the Information. I didn't know that about the DRIP option at buying at NAV. This makes a huge difference in my future purchases of clm.

[Robert-uocq]

Thanks for the video and explanation but I did have a question. Why would somebody sells most of their shares before the rights offering. Wouldn't it be better to hold some to purchase more shares at NAV price? I saw this online: For example, CLM allows shareholders to buy one share for every three shares they own, with the subscription price equal to the greater of 122% of the net asset value or 65% of the market price. Thanks

[garythomas]

Great video. You’ve described this fund better and more clearly than anyone else I’ve seen. I’m confused though. Why is this a five star fund that so many people like so much if it slightly underperforms SPY (counting the great deal of dripping at NAV), yet has a monster management fee and horrendous tax consequences (all your growth comes in the form of fully taxable income) compared to the great tax treatment of capital appreciation you get from SPY? It seems like, with CLM, you make a little less, and pay out a ton more in taxes. What am I missing here? Thanks for your help!

[Seoulsearch]

This is the most thorough video I have ever seen on this fund I've ever seen. Thank you so much! 👍🏼

[Rentcollector]

I sold my clm last week made 5% of the principal investment plus my dividends for 15 months!

[saustinredsox]

Great minds think alike Adrian!!! As long as there is a SVOL why take the risks with CLM (even with drip)? Best regards, Steve.

[Dr_DavidDiv]

Surely there must be an international broker (for non US citizens) that
offers the Special DRIP at the NAV for Cornerstone.
SCHWAB and IBKR will not come to the party and
etrade and Fidelity are not available to Australians (ie non US citizens.)
Can anyone offer a suggestion for a suitable broker for non US citizens who wish to
avail themselves of the Special DRIP at the NAV for Cornerstone???

[maureenmurphy]

Learned a lot from this video. Still plan to hold for long run and watch of offerings.

[debbieparisian]

CLM follows the Nasdaq and CFR follows the S&P

[thepixalking]

Wow... this is a great video for people new to this concept. Very thorough!

[jasoncowan]

does anybody know what they do with the money CLM gets when shares are bought at the rights offering....dont they use it to reinvest or grow assets.?

[Fidelbr]

DRIP at NAV can also be achieved by doing a DRS transfer to the transfer agent.
This way you don't have to switch broker
A DRS transfer can be expensive depending on your broker and it takes time

[andrewwalker]

Doesn’t make sense to me to sell right now—making 18% yield on it

[jiti]

This stock has gone from 150+ to 8 ish so does Div income makes it worth it? also if one would have invested at 150 with Margin would there be a margin call

[seanacus]

Schwab doesn’t do the nav drip. I tried