Tuesday, October 20, 2015

Recent Buy (HTR) : October 20, 2015

Today I made the following transactions:

  • SELL: 25 shares of WPC for $1554. This reduces my Annual Income by $95.50
  • BUY: 70 shares of HTR for $1537. This increases my Annual Income by $159.60
Overall I increased my Annual Income by $64.10.

This accomplished 2 goals for me. First it reduced my overall portfolio exposure to WPC to 21.8%. This is still much too high but its a slow process, and in the mean time I will continue to bring in the nice 6% yield of WPC.

The second goal is to own $HTR. Here is why I like HTR:

From the fund website:

"Brookfield Total Return Fund, Inc. is a diversified, closed-end fund whose primary objective is to provide high total return, including short and long-term capital gains and a high level of current income. The Fund pursues this objective by investing and actively managing a portfolio consisting primarily of U.S. Treasury, mortgage-backed, asset-backed and high-yield corporate securities. No assurance can be given that the Fund’s investment objectives will be achieved."
From the annual report, the fund holds 40% each of Commercial and Residential Mortgage backed securities. The remaining 20% is cash and other asset backed securities. 67% of their portfolio has fixed rate so I can see why their dividend has been steady the past.

Speaking of steady dividend. Every month since September of 2008, they have paid a dividend of .19/share (.192 from 2008 to 2012). The rates were even higher before then as they have been paying out dividends consistently for 25 years.

I will evaluate this holding every quarter to see if there are better options, but as long as it keeps paying a consistent .19/share every month, then I will be happy.

What are your thoughts on $HTR?

Disclaimer: I am not a licensed investment professional. I am not liable for any losses suffered by any parties. Any information on this site is my opinion only and should not be used for investments of any kind.


  1. Thanks for sharing your transactions. I have never looked into municipal bonds. Looking at the history of HTR (http://www.dividend.com/dividend-stocks/financial/closed-end-fund-debt/htr-helios-total-return-fund-inc/) does seem interesting... the growth may be not there but the yield is very nice, and has been there for a while. I have to educate myself on these types of bonds. For the sake of a bit of diversification why not. Are HTR dividend tax free?

    1. Hi Fab! Thanks for stopping in and commenting. You are right about the growth. Its not there, but a steady 10% yield is nice. I don't expect this to become a huge portion of my portfolio, but I do like the diversification it offers.

      Not sure about the tax free... my guess is probably not since its traded as a fund.