We have written before and are owners of the Invesco High Income 2023 Target Term Trust (NYSE:IHIT).
Invesco recently filed the semi-annual report for the CEF and it appears that everything continues on track for the payment of the monthly 5 cent dividend. This represents a current yield of around 6% which is a darned good yield for a CEF than holds mostly (80%) investment grade securities. There are 57 different securities in the Trust–so a decent level of diversification.
The objective of the trust is to return $9.835 to the investor on or about on 12/1/2023 while paying a reasonable dividend along the way. The current NAV (net asset value) of the Trust is $9.97 while shares are now trading around $10.02.
We must point out that the Trust does use leverage to help generate incremental income. The $80 million in leverage has a weighted cost of 3.38%.
The chart below shows the lack of volatility this issue has displayed SO FAR.
Maybe this security fits a need for your investment portfolio–and maybe not.