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Weekly Review: High-Yield CEFs - DHF Has Solid Past Performance And Juicy Current Yield

Published Wed, 17 Apr 2019 11:04:45 -0400 on Seeking Alpha

Introduction
The closed-end funds from the high-yield sector significantly increased their prices over the past four months. Currently, most of them are traded at positive Z-scores, which is an indication that they have lost most of their statistical edge. Still, they are traded at high discounts, but we are cautious when we select our positions due to the lack of statistical edge. I still see several interesting buying opportunities in the sector, which I am going to discuss with you in this article. Dreyfus High Yield Strategies Fund (DHF) is a very interesting combination of attractive valuation, solid past performance and quality of the portfolio.
The Benchmark
The price of the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) rose by $0.53 to finish the week at $86.96 per share which also a new high for the year. Furthermore, we have not seen the main index at these levels since January 2018.
The past several weeks were quiet for the high-yield bonds as they continued their upward trend stimulated by the gains in equities. It seems that the market participants have again appetite for riskier assets.

Source: Barchart, iBoxx $ High Yield Corp Bond iShares
I would like to spend some time covering several advantages of high-yield bonds and closed-end funds, which invest in this asset class. As the high-yield sector generally has a low correlation to other sectors of the fixed-income market, along with less sensitivity to interest rate risk, an... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
DREYFUS HIGH YIELD STRATEGIES 3.07   0.0 0.00 0.27 9.63
NEUBERGER BERMAN HIGH YIELD STRATEGIES FUND 12.01   0.0 0.00 0.98 7.45
MASSMUTUAL CORP INV 16.54   0.0 0.00 1.20 7.27
ISHARES IBOXX $ HIGH YIELD CORPORATE BOND FUND 87.32   0.0 0.00 4.60 5.27
SPDR S&P 500 ETF 301.29   0.0 0.00 5.42 1.82

DREYFUS HIGH YIELD STRATEGIES - DHF
DREYFUS HIGH YIELD STRATEGIES - DHF  


Older articles featuring Dreyfus High Yield Strategies (DHF):
BNY Mellon High Yield Strategies Fund Declares Dividend
BNY Mellon High Yield Strategies Fund Declares Dividend
BNY Mellon High Yield Strategies Fund Declares Dividend
BNY Mellon High Yield Strategies Fund Declares Dividend
BNY Mellon High Yield Strategies Fund Declares Dividend
BNY Mellon High Yield Strategies Fund Declares Dividend
BNY Mellon High Yield Strategies Fund Declares Dividend
BNY Mellon High Yield Strategies Fund Declares Dividend
BNY Mellon High Yield Strategies Fund Declares Dividend
BNY Mellon High Yield Strategies Fund Declares Dividend

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