CLM Dividend Stock

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FTW
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CLM Dividend Stock

Post by FTW »

Today, 11/18/22 I just increased my positions in a stock that I have held for a very long time.

The name of the stock is Cornerstone Strategic Value Fund, (CLM)
As I have mentioned earlier, I use multiple brokerage accounts and this morning before the market opened, I just purchased a sizable number of additional shares of this stock through both of my brokerage accounts.

BUT, this is a long term stock for me.
The reason for that statement is the current share price is around between $8.25 to $8.30 per share and the dividend it pays is $0.18.08 per share.

The last time I added to my position of this particular stock was back in JUNE of this year when I bought some shares at $8.26 per share. Since that time it has gone up as high as $10.89 per share, but I did NOT sell it.

The primary reason I hold on to this stock is because it is a great LONG TERM INVESTMENT for me that pays me $18.08 per month on every 100 shares of stock I own.

Now, lets look at some numbers.
Bt the end of this month, since back in June when I purchased some shares of this stock at $8.26 per share, the total amount of dividends I will have comes to $108.48 in six months. Per year, that comes to $216.96 per hundred shares.

So, if we take an investment of $826 per 100 shares that gives us $216.96 per year in dividends, you can easily see that in 4 years we would receive $867.84 just in dividends and still have our stocks.

Now, I would caution you on one fact. When it comes to dividend stocks, some companies can change the dividend amount they pay, anytime they want to. So, before you EVERY buy a stock based on the amount of dividends they pay, I strongly suggest that you check out the website, https://www.dividendchannel.com where you can see how often the dividend amounts change for any stock you want to purchase.
CLM-dividends-2022-11-18.png
CLM-dividends-2022-11-18.png (42.07 KiB) Viewed 133 times
Above is a section of the dividend history for CLM

Now, as with any stock tips I share, I strongly encourage you to do your own research.
Cornerstone Strategic Value Fund, Inc. (the Fund) is a closed-end, diversified management investment company.

The Fund's investment objective is to seek long-term capital appreciation through investment primarily in equity securities of United States and non-United States companies.

The Fund invests in various sectors, such as information technology, health care, consumer discretionary, financials, communication services, closed-end funds, industrials, consumer staples, exchange-traded funds (ETFs), materials, real estate, and others.

The Fund invests in companies of all capitalization ranges. The Fund invests in common stocks and also invests in preferred stocks, rights, warrants and securities convertible into common stocks that are listed on stock exchanges or traded over the counter.

The Fund also invests without limitation in other closed-end investment companies and ETFs. The Fund's investment manager is Cornerstone Advisors, LLC.
CLM is based out of Cincinnati, OH
www.cornerstonestrategicvaluefund.com
7-31-22.pdf
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I am also attaching a pdf file containing one of their filing with the Securities and Exchange Commission from this past June of 2022.

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CLM-5yr-2022-11-18.png (10.69 KiB) Viewed 133 times
This chart above is a 5 year stock price chart for CLM. Unlike stocks that I trade, where I always try to buy them on the upswing, with high dividend stocks, I try to buy them when they are down real low, especially if the reason they are down is because the entire market is down due to some National or World Wide Event.
FTW
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Posts: 681
Joined: Tue Feb 23, 2021 5:04 pm

Re: CLM Dividend Stock

Post by FTW »

On Thursday Dec 1, 2022, I sold "some" of my CLM stock that I purchased on November 18, 2022 and took my profits through a "trailing loss" order I had in place.

The per share price had gone up enough that I could take my profits and make more money then I would if I waited for the dividend. Combine that with the fact that the share price was dropping throughout the day, I let "some" of my shares sell, so that I could take my profits and yet still hold a position in the company.

Now, I will check watch the share price real close and as soon as I can buy it back at a lower price then I sold it at, I will buy it again.

The chart below displays the share price since I bought the stock and including the December 1, drop, when it sold.

One thing I might mention is that since this stock is so low per share, when I purchase it, I buy enough shares that a 5 cent to 25 cent profit per share will earn me a very tidy profit and I know that I can always buy it back, especially if I wait until after the Ex-Dividend date.
CLM-10day-2022-12-1.png
CLM-10day-2022-12-1.png (46.59 KiB) Viewed 90 times
FTW
Site Admin
Posts: 681
Joined: Tue Feb 23, 2021 5:04 pm

Re: CLM Dividend Stock

Post by FTW »

Here is an update on the new CLM dividend amount for 2023.
I personally plan on watching the share price very close and will buy more shares WHEN the current share price drops enough.
Cornerstone Strategic Value Fund, Inc. (NYSE American: CLM) (CUSIP: 21924B302) a closed-end management investment company, announced that in keeping with Fund's previously adopted monthly distribution policy, the Fund is declaring the following distributions, which have been reset for the calendar year 2023.

CLM
Record Date Payable Date Amt. Per Share
January 17, 2023 January 31, 2023 $0.1228
February 15, 2023 February 28, 2023 $0.1228
March 15, 2023 March 31, 2023 $0.1228


The Fund's distribution policy provides for the resetting of the monthly distribution amount per share ("Distribution Amount") annually, based on the Fund's net asset value on the last business day of October and the annualized distribution percentage approved by the respective Board of Directors (individually the "Board", or collectively, the "Boards").

The Board previously announced the distribution percentage for the calendar year 2023 would remain unchanged from the current year at 21% of the net asset value of each Fund.

The Board believes each Fund's distribution policy maintains a stable, high rate of distribution.
These distributions are not tied to the Fund's investment income or capital gains and do not represent yield or investment return on each Fund's portfolio.

The Distribution Amount from one calendar year to the next will increase or decrease based on the change in each Fund's net asset value. The terms of each distribution policy are reviewed and approved at least annually by the Fund's Board and may be modified at their discretion for the benefit of the Fund and its stockholders.

The Fund's Board remains convinced its stockholders are well served by a policy of regular distributions which increase liquidity and provide flexibility to individual stockholders in managing their investment in each Fund.

Stockholders have the option of reinvesting these distributions in additional shares of their Fund or receiving them in cash.

Stockholders may consider reinvesting their regular distributions through their Fund's dividend reinvestment plan, which may at times provide additional benefit to stockholders who participate in their Fund's plan.

Stockholders should carefully read the description of the dividend reinvestment plan contained in each Fund's report to stockholders.

Under the Fund's distribution policy, the Fund may distribute to stockholders each month a minimum fixed percentage per year of the net asset value or market price per share of its common stock or at least a minimum fixed dollar amount per year.

In determining to adopt this policy, the Board of the Fund sought to make regular monthly distributions throughout the year. Under each policy, the Fund's distributions will consist either of (1) earnings, (2) capital gains, or (3) return-of-capital, or some combination of one or more of these categories.

A return-of-capital is the return of a portion of the stockholder's original investment.

Given the current economic environment and the composition of each Fund's portfolio, a portion of each Fund's distributions made during the current calendar year is expected to consist of a return of the stockholder's capital.

Accordingly, these distributions should not be confused with yield or investment return on each Fund's portfolio.

The final composition of the distributions for 2022 cannot be determined until after the end of the year and is subject to change depending on market conditions during the year and the magnitude of income and realized gains for the year.

In any given year, there can be no guarantee each Fund's investment returns will exceed the amount of the net distributions.

To the extent the amount of distributions paid to stockholders in cash exceeds the total net investment returns of the Fund, the assets of a Fund will decline.

If the total net investment returns exceed the amount of cash distributions, the assets of a Fund will increase.

Distributions designated as return-of-capital are not taxed as ordinary income dividends and are referred to as tax-free dividends or nontaxable distributions.

A return-of-capital distribution reduces the cost basis of a stockholder's shares in the Fund.

Stockholders can expect to receive tax-reporting information for 2022 distributions by the middle of February 2023 indicating the exact composition per share of the distributions received during the calendar year.

Stockholders should consult their tax advisor for proper tax treatment of each Fund's distributions.


Volatility in the world economy helps to create what Cornerstone Advisors, LLC (the "Adviser") views as significant opportunities through investments in closed-end funds. In addition to holding closed-end funds which invest substantially all of their assets in equity securities, the Adviser may also choose to take advantage of situations in funds which invest in fixed income or other investment categories. Closed-end funds, with their broadly diversified holdings, enhance diversification within each Fund's portfolio.

Investing in other investment companies involves substantially the same risks as investing directly in the underlying instruments, but the total return on such investments at the investment company level is reduced by the operating expenses and fees of such other investment companies, including advisory fees.

To the extent each Fund invests its assets in investment company securities, those assets will be subject to the risks of the purchased investment company's portfolio securities, and a stockholder in the Fund will bear not only their proportionate share of the expenses of a Fund, but also, indirectly the expenses of the purchased investment company. There can be no assurance the investment objective of any investment company in which a Fund invests will be achieved.

Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc. are traded on the NYSE American LLC under the trading symbols "CLM" and "CRF", respectively. For more information regarding each Fund please visit www.cornerstonestrategicvaluefund.com and www.cornerstonetotalreturnfund.com.
FTW
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Posts: 681
Joined: Tue Feb 23, 2021 5:04 pm

Re: CLM Dividend Stock

Post by FTW »

Yesterday, on Thursday 12/8/22 I bought back into CLM on both of my brokerage accounts.
The share price was down below what I sold it at on Dec 1, 2022.

And while it the current EX dividend date is 12/14/22, I am still in early enough to qualify for the dividend that will be paid on 12/30/22.

Depending on how much the share price goes up before 12/14/22, I "may" sell some of my shares again after 12/14/22 OR I might buy more shares either after 12/14/22 or after 12/30/22. Either way, I will be watching the movement of the share price around those two dates.
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