Nuveen Credit Strategies Income Fund (JQC)

Nuveen Credit Strategies Income Fund offers a high 12.3% yield but faces weakening distribution coverage due to heavy floating-rate asset exposure. JQC conducted a rights offering earlier this year, which was dilutive and put increased downward pressure on the fund with the broader market in sell-off mode at the time too. Distribution coverage has continued its downward trend, with further deterioration likely as the Fed continues to cut rates, impacting JQC's income generation.

Nuveen Credit Strategies Income Fund maintains a high 12.2% yield but faces ongoing concerns about dividend sustainability and NAV erosion. JQC relies heavily on leverage (37% of assets) and invests primarily in below-investment-grade loans, increasing risk in a high-rate environment. Distribution coverage remains inconsistent, with payouts often exceeding earnings; recent dividend increases may be aimed at narrowing JQC's discount to NAV.

While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the most significant public companies, especially the technology giants, trade at prices up to $1,000 per share, while many are in the low to mid-hundreds. It is hard to get decent share count leverage at those steep prices. Many investors, especially more aggressive traders, look at lower-priced stocks to make a profit and increase their share count. That can help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.

Investors love dividend stocks, especially those with ultra-high yields, because they provide a substantial income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends. 24/7 Wall St. Key Points: The Federal Reserve dot plot indicates there will be two rate cuts this year. Many do not expect the first cut until September. Ultra-high-yield stocks should get a big lift when the first cut is applied. Are ultra-high-yield stocks a good fit for you? Why not schedule a meeting with a financial advisor near you for a comprehensive review of your portfolio? Click here to get started finding one now. (Sponsored) The voices across Wall Street and Main Street are starting to ramp up as higher rates have significantly slowed the housing market. With tariffs beginning to be felt by consumers, many economists and equity strategists believe it is high time for the rate cuts to start. The recent inflation numbers came in slightly hotter than expected, which likely nudged a July cut off the table; however, a September cut looks increasingly likely. One thing is for sure: rate cuts will be a strong tailwind for our favorite ultra-high-yield stocks, and four that trade below $10 are offering investors incredible entry points now. Lower-priced shares enable investors to acquire more stock, potentially generating higher passive income. Why do we cover ultra-high-yield dividend stocks? While not suited for everybody, those trying to build strong passive income streams can do exceptionally well with some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can employ a barbell approach to generate substantial passive income streams. BlackRock Innovation and Growth Term Trust This fund has lowered the dividend, which is a huge positive for shareholders who buy now. BlackRock Innovation and Growth Term Trust (NYSE: BTX) has investment objectives to provide total return and income through a combination of current income, current gains, and long-term capital appreciation. The Trust will invest, under normal market conditions, at least 80% of its total assets in a combination of equity securities issued by U.S. and non-U.S. technology and privately held companies. BTX holds well-known tech stocks, including Spotify Technology S.A. (NASDAQ: SPOT) and Reddit Inc. (NYSE: RDDT). The largest position is in AI chip giant Nvidia Inc. (NASDAQ: NVDA). It also holds a collection of private-equity holdings that give it hedge fund-type qualities. Think of this fund as a Cathie Wood-style vehicle for new technology with a massive dividend yield. Trading at a small 2% discount to the fund’s net asset value, those seeking a substantial monthly income with growth potential should consider purchasing these shares now. Townsquare Media This off-the-radar stock boasts significant total return potential, complemented by its substantial dividend yield. Townsquare Media Inc. (NYSE: TSQ) is a community-focused digital and broadcast media and digital marketing solutions company. The company’s segments include: Subscription Digital Marketing Solutions Digital Advertising Broadcast Advertising The Digital Advertising segment, marketed as Townsquare Ignite, encompasses digital advertising on its programmatic advertising platform, as well as its owned and operated digital properties. The Subscription Digital Marketing Solutions segment includes its subscription digital marketing solutions business, Townsquare Interactive. The Broadcast Advertising segment includes local, regional, and national advertising products and solutions delivered via terrestrial radio broadcast. Townsquare Interactive partners with small and medium-sized businesses to help manage their digital presence by providing a SAAS business management platform, Website design, creation, and hosting, search engine optimization, and other digital services. Nuveen Credit Strategies Run by one of the world’s largest money managers, this exchange-traded fund, with 423 holdings and a 12.76% dividend yield, offers the kind of diversity that ultra-high-yield investors seek. Nuveen Credit Strategies Income Fund (NYSE: JQC) is a diversified closed-end management investment company. The fund’s investment objective is to achieve a high level of current income, with a secondary objective of total return. At the time of purchase, the fund invests at least 80% of its assets in instruments that are senior to common equity in an issuer’s capital structure, including loans, debt securities, and preferred securities. Nuveen Credit Strategies invests up to 20% of its managed assets in instruments of non-U.S. issuers that are either U.S. dollar- or non-U.S. dollar-denominated, including instruments of issuers located in or conducting business in emerging market countries. It also invests up to 25% of its managed assets in collateralized loan obligations debt securities. It serves various industries, such as: Software Hotels Restaurants Leisure Media Insurance PermRock Royalty Trust PermRock Royalty Trust (NYSE: PRT) acquires, develops, and operates oil and natural gas properties in the Permian Basin. With an ultra-high-yield dividend, this energy trust makes sense as spot oil prices look to rebound. PermRock Royalty Property Trust is a statutory trust. The trust owns a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from the underlying properties. T2S Permian Acquisition II LLC owns and operates the underlying properties. The underlying properties comprise about 31,354 gross (22,394 net) acres in the Permian Basin, which extends over 75,000 square miles in West Texas and Southeastern New Mexico. The underlying properties consist of four operating areas. The Permian Clearfork area consists of about 2,434 net acres on the Central Basin Platform of the Permian Basin in Hockley and Terry Counties, Texas Permian Abo area consists of about 1,667 net acres on the Central Basin Platform of the Permian Basin in Terry and Cochran Counties, Texas The Permian Shelf area consists of 14,390 net acres on the Eastern Shelf of the Permian Basin The Permian Platform area consists of 3,903 net acres Tronox Holdings Some of Wall Street’s largest banks are very bullish on this company, which is another notable ultra-high-yield dividend stock to consider. Tronox Holdings PLC (NYSE: TROX) is a producer of titanium products, including titanium dioxide (TiO2) pigment, specialty-grade titanium dioxide products, high-purity titanium chemicals, and zircon. The company is a vertically integrated manufacturer of TiO2 pigment. It mines titanium-bearing mineral sands and operates upgrading facilities that produce high-grade titanium feedstock materials, pig iron, and other minerals, including the rare-earth-bearing mineral monazite. It operates titanium-bearing mineral sand mines and beneficiation and smelting operations in Australia and South Africa to produce feedstock materials that can be processed into TiO2 for pigment, high-purity titanium chemicals, including titanium tetrachloride, and ultrafine TiO2 used in specific specialty applications. Tronox supplies and markets TiO2 under the brand names TIONA and CristalActiv. It has nine pigment facilities located in these countries and others: United States Australia Brazil United Kingdom Five Stocks Paying 7% and Higher Dividends That Nobody Ever Talks About The post 5 of Our Favorite Ultra-High-Yield Stocks Are Penny-Pinching Steals Under $10 appeared first on 24/7 Wall St..

JQC offers high yield (11.85%) via exposure to senior loans, high-yield debt, and CLOs, but carries elevated risk from credit quality and leverage. Macroeconomic factors like trade tariffs and interest rates pose significant risks to high-yield issuers, potentially impacting JQC's portfolio performance. JQC charges relatively high fees (202bps) and has historically underperformed peers like ARDC, despite a stable distribution since Q3'23.

While Most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy.

Although double-digit yields were normal during the 1980s, lower interest rates and a robust stock market have rendered yields of 10% or higher obscure.

Investors love dividend stocks, especially the ultra-high-yield variety, because they offer a significant income stream and have massive total return potential.

NEW YORK--(BUSINESS WIRE)--Nuveen Credit Strategies Income Fund (NYSE: JQC) (the “Fund”) today announced the preliminary results of its transferable rights offering (the “Offer”) which expired at 5:00 p.m., Eastern time, on April 29, 2025 (the “Expiration Date”). The Offer entitled the rights holders to subscribe for additional common shares of the Fund (“Common Shares”). The Offer is expected to result in the issuance of approximately 12.2 million Common Shares (including notices of guaranteed.

Nuveen Credit Strategies Income Fund's 1-for-5 rights offering has a subscription price based on the higher of 90% of NAV or 95% of the average closing price. The "higher of" condition prevents a vicious cycle of discount widening, effectively creating a discount floor and limiting how wide the discount can get. Investors should not subscribe if JQC's discount widens beyond -10%, as it would be cheaper to purchase the fund on the open market.

CEF Insights welcomes back Nuveen Head of Senior Loans Scott Caraher. Who shares new insights into senior loans, which continue to offer many potential benefits in today's evolving market. Gain updates on the senior loan market environment and outlook, Nuveen's strategy for income and more.

NEW YORK--(BUSINESS WIRE)--Nuveen Credit Strategies Income Fund (NYSE: JQC) announced today that, in connection with the Fund's transferable Rights Offering that commenced March 31, 2025, trading of the Fund's transferrable subscription rights (“Rights”) (NYSE: JQC RT) will be suspended from trading on the NYSE effective before market open on April 7, 2025. The Rights are being suspended from trading on the NYSE due to the Rights trading at a price below $0.01. The NYSE may reinstate trading in.

We review the CEF market valuation and performance through the third week of March and highlight recent market action. Nearly all CEF sectors were up, with MLPs rebounding and loan funds lagging; month-to-date, most sectors remain down due to lower equity prices and wider credit spreads. Invesco credit CEFs VLT and VVR cancelled their fixed managed distribution policies with VVR price falling hard on the news.

Nuveen Credit Strategies Income Fund offers a high distribution rate into the double digits, but its narrow discount and weak distribution coverage raise concerns. JQC primarily invests in senior loans, high-yield corporate debt, and CLOs, with a hefty amount of leverage increasing both risk and potential returns. JQC has put up relatively strong performance against the senior loan and high-yield bond ETF benchmarks since the 'transition' but has performed more in line with other hybrid CEFs.

NEW YORK--(BUSINESS WIRE)--Nuveen Credit Strategies Income Fund (NYSE: JQC) today announced that its Board of Trustees (the “Board”) has approved the terms of the issuance of transferable rights (“Rights”) to the holders of the Fund's common shares (par value $.01 per share) (“Common Shares”) as of March 31, 2025 (the “Record Date”). Holders of Rights will be entitled to subscribe for additional Common Shares (the “Offer”) at a discount to the market price of the Common Shares. After considerin.

I am downgrading JQC to a sell due to disappointing NAV growth and reliance on positive market momentum despite a favorable interest rate environment. JQC's portfolio is heavily weighted towards high-risk, below-investment-grade borrowers, which contributes to its poor NAV health and inconsistent distribution coverage. The fund's dividend yield is attractive at 11.7%, but its history of frequent cuts makes it unreliable for long-term income seekers.