Published Mon, 17 Sep 2018 12:31:43 -0400 on Seeking Alpha
Main Thesis Between an expensive financing arrangement and a steadily declining distribution, there are a lot of fundamental issues with this closed-end fund. Considering the potentially maturing business cycle and the risky proposition of junk bonds, I cannot recommend this fund in a buy and hold strategy. Due to the widening discount to NAV, however, there may be a short-term trading opportunity if you’d like to bet on a recovery in the market price. Notwithstanding the inefficiencies of the CEF market, this is a risky strategy that will result in a negative total return if the trade goes against you.
The Neuberger Berman High Yield Strategy (NHS) Seeks a positive total return by investing in short duration high yield bonds Enhances returns using leverage Diversified holdings with exposure to various industries Assessing the Distribution
(Source: Original Image - Data from Yahoo Finance)
Because bond yields are still quite low, investors have been mostly forced to look elsewhere for income. Because of intraday trading and their ability to borrow at short-term rates, closed-end funds have been a popular pick to deliver income. With the benefit of leverage, this fund has offered a very good trailing 12-month yield of 7.23%. While most income investors would like to see more consistent distributions if they’re relying on their portfolios for income, yields over 7% are sure to pique your interest if you’re unsatisfied with what a core bond strategy (LQD)... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
Older articles featuring Frontier Communications (FTR):Nicholas Ward's Dividend Growth Portfolio: January 2020 Update
Swapping Apple For Apple - October Dividend Portfolio Update
Uniti Dividend Is Likely To Be Suspended
Nuveen Short Duration Credit Opps JSD: 7.85% Yield Plus Protection From Higher Rates At An Anomalous Discount To NAV
General Electric Company: How Safe Is Your Retirement Income From a Dividend Cut?
High Volatility? Buy This Stable Monthly Dividend 6.8% Yield CEF
HYG And U.S. High-Yield Market Outlook: Week Ending September 16, 2018
Is 15% Yield To Maturity Worth The Risk For Frontier Communications 2025 Bonds?
Frontier Communications: No Dividend Needed
Frontier Communications Declares Dividend on Preferred Stock