Dividends Can't Save Funds From Bad Grades

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Focusing on dividends wasn't enough to help some closed-end funds avoid low grades from TheStreet.com Ratings.

The list of 25 lowest-rated closed-end funds below is dotted with the words "dividends," "return" and "income." Normally, funds with higher-than-average dividend yields rank in the middle; they're neither top performers nor cellar dwellers. But the credit crunch and stock market implosion have taken no prisoners.

Almost all of the funds have lost half their value or more in the past year, with one losing 94%. They all earned overall grades of D-minus or worse, which amount to "sell" recommendations.

Several of these funds target real estate securities internationally, meaning those outside the U.S., or globally, which include domestic companies. The housing market has been one of the hardest-hit industries of this recession.

In contrast, the top-rated closed-end funds invest in municipal bonds. They are also the category's best performers.

TheStreet.com Ratings uses a computerized model to evaluate a fund's performance and volatility, which is reflected in the "reward" and "risk" grades. Funds with the lowest "overall" ratings have attained the worst combination of the two. To learn more about TheStreet.com Ratings' methodology, click here.

Worst-Rated Closed-End Funds by TheStreet.com Ratings NAME TICKER Reward Grade Risk Grade Overall Grade 12-Month Total Ret'n (%) Kayne Anderson Engy Development Co KED E+ E- E- -65.76 RMR Dividend Capture Fund RCR E- E+ E- -93.71 First Trust/Gallatin Spl Fin & Finl FGB E- E+ E- -79.73 The Cushing MLP Total Return Fund SRV E- D- E- -68.65 Seligman LaSalle Intl Real Est Fd SLS E- D- E- -76.33 DWS RREEF Wrld Real Est & Tac Stra DRP E D- E- -71.08 DCW Total Return Fund DCW E- D E- -80.65 First Trust Strategic High Inc III FHO E+ D- E- -60.70 RMR Asia Real Estate Fund RAF E+ D- E -62.98 First Trust Active Dividend Inc Fd FAV D- D- E -51.51 Tortoise Capital Resources Corp. TTO D+ E- E+ -50.95 Cornerstone Progressive Return Fund CFP D+ E E+ -47.27 Advent/Claymore Gbl Con Sec & Inc AGC D- D E+ -61.05 Calamos Global Dynamic Income Fd CHW D- D- E+ -55.19 RMR Preferred Dividend Fund RDR E+ D E+ -92.31 Cohen & Steers Global Inc Builder INB E D+ E+ -63.33 Alpine Global Premier Properties Fd AWP E- D+ E+ -78.92 Dow 30 Enhanced Premium & Income Fd DPO D- D E+ -51.21 BlackRock Intl Grth and Inc Tr BGY D D- E+ -53.07 DWS RREEF Real Estate Fund SRQ E+ D E+ -92.85 BlackRock EcoSolutions Investment T BQR D- D E+ -56.55 Delaware Enhanced Glb Div & Inc Fd DEX D- D D- -55.53 Van Kampen Dynamic Credit Opp VTA D D- D- -52.90 Helios High Income Fund Inc HIH D D- D- -67.93 Nuveen Tax-Advantaged Dividend Grth JTD E+ D+ D- -57.98 Source: TheStreet.com Ratings (Data as of end of most recent month). For an explanation of our ratings, click here.