Few investors realize that there is a huge capital gain distributed each...

Suggestion by Bobbarriskill on 2007-12-20 19:00:10

Few investors realize that there is a huge capital gain distributed each year in Dec. The data in the papers does not reflect this added return; considering dividends only, which are small.

Adams Express is a closed end investment company or "fund". You buy shares on the New York Stock Exchange, rather than send money directly to the company. The price has been at a discount from NAV for some time, so you are buying a dollar's worth of the stock for maybe 90 cents if it is at a 10% discount. The year end capital gain distribution has always been generous. I have had ADX for over 20 years, and yield has always been 6/7%.

Also have TY which Tri-Continental, and GAM which is General American Investors. Over the years they perform just as well, but recently GAM has produced 9% yield based on our cost. Peek also at GAM Pref. B, yielding 6.95% a good alternate choice to a CD. Seems perfectly safe. Hope this helps someone. More info from me if needed. Add comments or discussion related to this suggestion here.

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