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If you know about this high-yield investment, I’d be surprised.
I’d even bet pennies to dollars that you don’t.
The statistics show that 97% of investors are clueless to this 11.6 % income yield, even if it is hiding in plain sight.
Don’t be a clueless income investor. Click here to attend our new Income Freedom Masterclass.
This training event starts on July 1.
It’s accessible ONLY to members of our Facebook Group. (Go here for access. It’s FREE.)
How can you become one of the informed few who can capture this 11.6% income yield?
That’s easy enough. I’ll tell you.
The Highland Global Allocation Fund (NYSE: HGLB) is the investment.
As the name implies, Highland Global is a fund investment, but it’s a type of fund investment few investors know.
Highland Global is a closed-end fund (CEF). This is a niche market that only 3% of investors tap.
I would bet again that even fewer investors know Highland Global exists.
It’s a newcomer to the CEF realm. Its shares were first publicly traded in February.
You should know about Highland Global and its high yield. It pays income that generates a market-thumping 11.6% yield on investment.
What’s more, it pays the income monthly (not quarterly, like most dividend stocks).
How does Highland Global generate its high income yield?
It begins by allocating its funds among 125 different stocks. Most are of the dividend-paying, value variety: financials, consumer brands, health care, industrial, utilities, and energy.
Additional income and value are extracted from alternative investments.
Fourteen percent of the portfolio is allocated to high-yield floating-rate loans. Another 9% is allocated to sovereign foreign debt – namely the sovereign debt of Argentina.
Highland Global is unique among CEFs in that it plays both sides of the coin.
Nearly 28% of the portfolio is sold short. (Selling short refers to selling the shares first [at a higher price] and buying later [at a lower price]). Netflix (NASDAQ: NFLX), Zillow (NASDAQ: Z), and Boston Scientific (NYSE: BSX) are prominent among the short positions.
And it’s all on sale for you today.
Highland Global converted to a CEF with an initial net asset value (NAV) of $15 per share. This was also the initial public offering price (IPO) price.
The share price jibed with the NAV for only a couple of days. The share price peaked at $15.65. The shares trade below $11 as I write.
The market price today is 21% below the NAV of the investments that populate the portfolio. Pay $0.79, get $1 worth of value.
But the discount won’t hold forever.
Management has a plan to narrow the discount (raise the share price).
If the discount persists, Global Highland’s advisors and affiliates will purchase up to the lesser of $20 million or 5% of the fund’s shares in open-market transactions over a two-year period.
The share-buyback policy offers additional downside protection.
An 11.6% distribution yield (with monthly payments), shares that trade at a deep discount to NAV, and pro-shareholder policies . . . what more could a value income investor want?
I’ll tell you.
The opportunity to gain insight into other income investments.
You’ll have that opportunity at our first session of the Income Freedom Masterclass.
This exclusive event starts on Monday, July 1.
You’ll need to join our Facebook Group to attend.
No problem, access is easy and free. Simply click here to join.