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.