hyejin kang
When I first covered the Barings Global Short Duration High Yield Fund (NYSE:BGH) in March 2024, I gave it a Hold rating due to concerns over a corporate talent raid on the Barings management team. I
BGH: This High Yield Fund Delivers Sustainable Monthly Income (Rating Upgrade)
Summary
- Upgrading BGH to Buy after strong outperformance versus peers and a well-covered, recently increased distribution, despite earlier concerns about management turnover.
- BGH offers a nearly 10% yield, consistent monthly dividends, and potential for special payouts, all fully covered by net investment income, unlike some competitors.
- The portfolio is diversified across defensive sectors, with most holdings in North America, and has shown resilience even amid economic uncertainty and market volatility.
- While BGH is attractive for steady income, I recommend averaging in, as market corrections may provide better entry points in the near future.
Now retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Since that time I have done considerable research and vowed to make smarter long-term investing decisions after suffering through the Great Recession with minimal losses to my inherited portfolio, after firing my financial advisor.I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security. I also enjoy reading investment/financial and business information and following trends in technology and markets. The human psychology of markets is as fascinating and inscrutable to me as the financial side. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.” Damon Runyon
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BGH either through stock ownership, options, or other derivatives. 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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