This note includes an update on our Top “High-Income NOW” securities, including a new Top 10 tear sheet and a link to the complete High-Income NOW Portfolio for April. The list remains dominated by one of the four main high-income food groups (CEFs, BDCs, REITs, big-dividend Blue Chips) based on current market conditions.
Specifically, we really like Closed-End Funds (CEFs) at this point in the market cycle because many of them are already trading at relatively lower prices and they are positioned to weather the market cycle (i.e. they’re financially strong, but prices haven’t yet fully recovered from 2022-2023 pain).
Conversely, BDCs are rich/expensive as compared to risks (credit spreads are relatively narrow and not necessarily compensating investors for risks.
We see select opportunities in REITs, but are largely investing through REIT CEFs.
Most importantly, we continue to take a diversified portfolio approach to reduce risks and keep income high. Here are links to the updated data:
Disciplined, goal-focused, long-term investing remains a winning strategy.