IHD: 12% Yield Is Fully Covered, Valuation Is Attractive, But Chinese Exposure Is A Risk

Power Hedge
Investing Group Leader
(23min)

Summary

  • Voya Emerging Markets High Dividend Equity Fund is one of the few remaining closed-end funds focusing on emerging markets.
  • Fund's performance history is poor, but it offers a high yield of 12.02%, which is fully covered.
  • Portfolio is diversified, but exposure to China poses a risk. Current valuation at a 13.33% discount on net asset value is reasonable.
  • Fund writes options against emerging markets, which may have caused it some losses earlier this year.
  • The fund could help investors diversify internationally, if we remain cognizant of the risks here.
  • Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More »

glass globe and money

PonyWang

The Voya Emerging Markets High Dividend Equity Fund (NYSE:IHD) is one of the few remaining closed-end funds that provide exposure to the potentially high-growth economies of various emerging markets around the world. This used to be a very popular

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This article was written by

Power Hedge
15.53K Followers

Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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