Closed end fund RiverNorth Opportunities Fund 6% preferred (RIV-A) went on sale just a bit ago with a mini-dump of shares. It is now trading at $22.77. This issue is rated by Moodys at A1.
For those looking for a decent yield on a very safe issue it may be worth a look, although the bid-ask spread is wide (22.7-23.49) one may not be able to secure the lowest price. Shares goes ex dividend in 10 days.
Users who liked this:
why not get the common with div at 15.+ cents?
What’s a good vehicle to play a yield curve steepener? The way things are going, I believe short term rates will be forced down and would happen sooner if Powell is removed while long rates would at best stay here or more likely rise as inflation is about to kick into another gear up while budget deficits increase with a likely recession on the horizon.
Any ideas on a steepener?
I don’t believe there’s a user-friendly way to put that on as retail.
You’d need to look at the futures.
what is the tax treatment of RIV-A? thx
Z—from their website (below). My best guess is they are a mix of qualified and return of capital. I hold shares in 2 IRAs so it is not of consequence for me.
Historical distributions have been paid from sources of income which have included net investment income and return of capital. Other sources of income may include net realized short-term capital gains and net realized long-term capital gains. If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time. Section 19(a) notices may be viewed below. These estimates may not match the final tax characterization contained in shareholders’ 1099-DIV forms after the end of the year. Investors should not draw any conclusions about a fund’s past or future investment performance from its current distribution rate.
Qonline- variable.
DYDD
what??
Based on my 1099 from Schwab, in 2024 the RIV-A dividends were 100% Non-Qualified, and no return of capital. In other words, 100% taxable as ordinary income.
My 1099s from Merrill Lynch shows that about 5.5% of the dividend was qualified in 2024 and none of it was in 2023. I wouldn’t base your ask price on you receiving a significant amount of the dividend as qualified.