Our Top 10 “High Income NOW” Tear Sheet has been updated. And so has our complete 23-position “High Income NOW” Portfolio (aggregate yield is 9.7%). There have been several new positions added, two complete sales and some rebalancing of existing positions. You can also access “buy under” prices relative to current market prices, plus additional aggregate and security-specific data.
The main changes revolve around recent market actions. For example, we’ve reduced our position sizes in tobacco companies Altria (MO) and British American Tobacco (BTI) after both companies experienced strong share price gains as part of the recent “flight to quality” trade (as the market got volatile).
We’ve also added a position in the Reaves Utility Income Fund (UTG) as it provides healthy income plus upside potential related to new demand for energy from utility companies driven by artificial intelligence in datacenters.
We also added Blue Owl Capital (OBDC) as the shares sold off from the double whammy of widening credit spreads and the market’s negative reaction to its announced merger with sister company (OBDE).
We added the Alerian MLP ETF (AMLP) to the Top 10 tear sheet for those wanting exposure to the steady income provided by oil & gas midstream companies without the hassel of a K-1 statement. AMLP recently sold off providing a more attractive entry point to get exposure to to names like Energy Transfer (ET) and Enterprise Products Partners (EPD).
Also worth mentioning, we really like the Adams Diversified Equity Fund (ADX) following its newly increased distribution (to 8.0%+). The shares sold off from the double whammy of declines in the equity market plus the end of the company’s tender offer (expired 8/2) whereby the discount to NAV widened back out (attractive).
You can access both the Tear Sheet and the complete portfolio here: