Cornerstone Strategic Value Fund, Inc. [CLM] Stock Forecast

Prior to August 31, 2023, my Readers mentioned 37 equities in their comments on my articles. Some bad-news investments (ROgues) mixed with (mostly) FAvorites. Thus, these are ReFa/Ro. Ten analyst-target-estimated TOP-NET-GAIN Re/Fa/Ro: PFE, PBR, O, T, BRSP, BTI, PRB.A, VOD, WBA, and MITT, averaged 48.7% net gains from reader data collected 8/18/23. Ten analyst-target-augured August TOP-PRICE-UPSIDE reader faves & rogues (ReFa/Ro) were: MMM, KHC, BRSP, T, O, PFE, BTI, VOD, WBA, & MITT boasting a 46.54% average target price upside estimate.

Cornerstone Strategic Value Fund is a closed-end fund that aims for long-term capital appreciation through equity securities. CLM's top holdings closely resemble those of the S&P 500, but it underperforms the market and has a higher expense ratio. CLM's poor performance can be attributed to its distribution policy, which relies on selling assets to fund dividends and leads to NAV erosion.

I have been researching cash flow investing for retirement and am designing a high-yield low-variance portfolio. Cornerstone Strategic Value Fund is frequently recommended to me because of its tax and DRIP advantages. Their total returns are lagging both the SPY and the QQQ on multiple timeframes.

CLM has a yield of 17% based on the declared distributions. I continue my series digging into CEFs beyond the yield with a look at CLM. I will use the same metrics in this update following my previous coverage in January. With a total return on NAV over the last 12 months of just 12.5% it doesn't look like the distribution, with a yield on NAV over 26%, is fully covered.

Cornerstone Strategic Value Fund is a highly controversial fund with its ever-declining share price and 4-star Morningstar rating. The fund's performance relies on it trading at a premium to its NAV, a situation that may or may not continue indefinitely, potentially impacting the lucrative reinvestments for investors. Investors need to ensure their broker supports reinvestments at NAV price, as most of the fund's performance comes from its NAV premium, and pay attention to the fund's NAV premium situation, which will drive its performance.

Equity CEFs: The Irony Of The Cornerstone Funds CLM And CRF

17 out of 22 CEF sectors positive on price and 18 out of 22 sectors positive on NAV last week. RSF offering results.

It was back in November of 2012, yes, over a decade ago, that I wrote my first article discussing the benefits of high Return of Capital (ROC) in equity CEF distributions. Back then, I first wrote (link below) about the risks and tax-differences between high ROC in equity based CEFs vs tax-free distributions in municipal bond CEFs.

CLM has a yield of 18.92% (based on the declared distributions for the next 12 months). This is attractive if the distribution can be supported. I continue my series digging into CEFs beyond the yield with a look at CLM.

Closed-end funds are great income investments thanks to tax laws and tradition. Being required to pay out most of their taxable gains explains a lot about how CEFs act.

Cornerstone Strategic Value Fund, Inc. is a US stock , located in Asheville of Nc and trading under the symbol CLM

Cornerstone Strategic Value Fund, Inc. stock price is $7.97 today.

Yes, Cornerstone Strategic Value Fund, Inc. is a publicly traded company.