Western Asset High Income Opportunity Fund Inc. (HIO)

HIO is a high-yield, diversified closed-end fund trading near its lowest valuation in the past year, offering attractive entry for value-seeking investors. The fund boasts a moderate BB credit rating, no leverage, and a 10.47% distribution rate on NAV, making it suitable for conservative, income-focused portfolios. HIO's historical total returns have consistently outperformed HYG, even when HYG is leveraged, underscoring its strong long-term performance.

NEW YORK--(BUSINESS WIRE)--Category: Financials.

I rate HIO a sell due to weak underlying performance, poor NAV growth, and inconsistent distribution coverage in the current high interest rate environment. HIO offers an attractive 11% yield, but its focus on high-yield, below-investment-grade debt increases risk and makes distributions vulnerable to cuts. The fund's persistent NAV decline and frequent net realized losses raise concerns about long-term capital preservation and sustainability of payouts.

NEW YORK--(BUSINESS WIRE)--Category: Fund Announcement.

WEST HARRISON, N.Y.--(BUSINESS WIRE)--Sky Harbour Group Corporation (NYSE: SKYH, SKYH WS), an aviation infrastructure company building the first nationwide network of Home-Basing campuses for business aircraft, announced the execution of a new ground lease agreement with the Port of Portland for the development of a Sky Harbour Home Base hangar campus at Hillsboro Airport (HIO), serving Portland, OR, and the City of Hillsboro, OR. The Sky Harbour campus, a two-phase development on approximately.

The Western Asset High Income Opportunity Fund offers a competitive 10.52% yield, outperforming major fixed-income indices and appealing to income-focused investors. Despite problems in the bond market, the fund's performance has been strong, with a 7.93% total return over the past six months. The fund is focused on investing in junk bonds instead of floating-rate securities, which is a better place to be in the current rate environment.

As I write this, the S&P 500 is sitting on a 28% total return for 2024. And of course, that could shoot even higher if we get the traditional Santa Claus rally.

HIO is a well-diversified fixed income CEF with over 250 holdings, mainly in U.S. high-yield bonds, and minimal currency risk. The fund has shown robust returns, outperforming unleveraged peers, but lags over a longer time frame and has wider drawdowns. Current tight credit spreads suggest caution; consider lightening exposure and re-entering after a 10% price drop.

The Western Asset High Income Opportunity Fund offers a high yield of 10.76%, outperforming peers but with potential risks due to inflation. The fund primarily invests in junk bonds, but has the potential to invest in common stocks. It is not currently exercising this option. Bonds may not provide sufficient protection against a resurgence of inflation, which is quite possible once the Fed cuts rates.

Think back just a couple weeks: The “yen carry trade” had investors running scared, and we had a terrific opportunity to buy stocks—better still our favorite income plays on stocks: closed-end funds (CEFs) yielding 8%+.

The Western Asset High Income Opportunity Fund (HIO) is an unleveraged option for high-yield exposure, currently trading at a discount. HIO's historical trading level suggests that waiting for a wider discount may be beneficial, which can especially happen during periods of greater market volatility. The fund's distribution yield is 11.30%, but investors should be aware of the fund's history of distribution cuts and a lack of coverage.

Western Asset High Income Opportunity Fund Inc. (NYSE:HIO – Get Free Report) declared a monthly dividend on Thursday, February 22nd, Wall Street Journal reports. Shareholders of record on Thursday, May 23rd will be paid a dividend of 0.0355 per share by the closed-end fund on Monday, June 3rd. This represents a $0.43 dividend on an annualized basis and a dividend yield of 11.36%. The ex-dividend date of this dividend is Wednesday, May 22nd. Western Asset High Income Opportunity Fund has decreased its dividend by an average of 0.6% annually over the last three years and has raised its dividend annually for the last 2 consecutive years. Western Asset High Income Opportunity Fund Stock Down 0.5 % Shares of NYSE:HIO opened at $3.75 on Monday. Western Asset High Income Opportunity Fund has a 12 month low of $3.52 and a 12 month high of $4.03. The company has a 50-day moving average price of $3.84 and a 200 day moving average price of $3.86. About Western Asset High Income Opportunity Fund (Get Free Report) Western Asset High Income Opportunity Fund Inc is a closed ended fixed-income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. It is co-managed by Western Asset Management Company and Western Asset Management Company Limited. The fund invests in the fixed income markets of the United States. Read More Five stocks we like better than Western Asset High Income Opportunity Fund 3 Natural Gas Stocks That Offer Great Dividend Yields JD’s Earnings Could Mean Chinese Stocks Making a Comeback 3 REITs to Buy and Hold for the Long Term Canada Goose Flies Higher Driven By DTC Growth Why is the Ex-Dividend Date Significant to Investors? CVS Health Stock Has a Silver Lining Called Value

Pioneer High Income Fund, Inc. offers a reasonably attractive yield of 8.96% at the current price. The PHT closed-end fund's share price has appreciated by 6.74% since August 2023, outperforming domestic bond indices.

NEW YORK--(BUSINESS WIRE)--Category: Fund Announcement.

Closed-end funds sometimes give us hard choices

NEW YORK--(BUSINESS WIRE)--Effective March 1, 2024, the named portfolio management team responsible for the day-to-day oversight of the Fund is as follows: