LEO BYN Mellon Muni bond fund
Posted: Tue Jun 16, 2020 2:14 pm
About 1 1/2 years ago we inherited a small position in LEO, about 5200 shares. It used to be 5 star (morningstar rating). I remember a cut in 2018 in the payout, but the monthly dividend has been steady ever since. But recently it went from 4 to 3 to now 2 star ratings. from Stockopedia: "FINANCIAL BRIEF: : For the six months ended 31 March 2019, BNY Mellon Strategic Municipals Inc revenues decreased 6% to $19.1M. Net income applicable to common stockholders totaled $21.2M vs. loss of $1.9M. Revenues reflect a decrease in demand for the Company's products and services due to unfavorable market conditions. Net Income reflects Net unrealized appreciation (depreciation increase from $16.7M (expense) to $6.1M (income)." Have also watched the share price decline when the market took a nose dive a few months back. Sure seems like a 5.5% yield is good in this climate. (we get 183.33 every month on those 5230 shares). I looked back Long term at the price volatility and wonder if it's a buy, hold or sell. Our Vanguard Prime is now down to .26%, so the 40k in interest earned is going to be 5k going forward, but am very risk averse and reluctant to chase returns if it means accepting the resulting volatility. any thoughts from the BG community?