MILLER/HOWARD HIGH INCOME EQUITY FUND DECLARES MONTHLY DISTRIBUTIONS
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Insights
The declaration of cash distributions by the Miller/Howard High Income Equity Fund (HIE) is a clear indicator of the fund's current financial health and its ability to generate cash flow for distribution to shareholders. The distribution rate, sitting at 5.52% based on the closing price and 5.28% based on net asset value, is a key figure for investors as it relates to the yield they can expect from their investment. This rate is particularly noteworthy when compared to the average dividend yield for equity income funds, which can serve as a benchmark for performance.
Investors are often attracted to funds with stable or increasing distributions, as these can signal a well-managed portfolio and a potentially reliable stream of income. However, it's important to note that distribution rates can fluctuate due to market volatility and fund performance. The Board's commitment to monitoring the distribution level suggests an active approach to managing this aspect of the fund's operations, which could reassure investors looking for regular income.
While the announcement of distributions is generally seen as a positive, it's essential for investors to understand that distribution rates are not synonymous with total returns. The total return on an investment in the fund would also factor in capital appreciation or depreciation, which is not reflected in the distribution rate alone.
The monthly distribution strategy adopted by the Miller/Howard High Income Equity Fund aligns with the preferences of a specific investor demographic seeking regular income streams. This approach can be appealing to retirees or other income-focused investors who prioritize steady cash inflows over potential capital gains. The fund's distribution policy can act as a differentiator in a crowded market where investors have a myriad of choices.
It's important for the fund to maintain a delicate balance between attractive distribution rates and sustainable capital growth. A high distribution rate can sometimes come at the expense of reinvestment in the fund's portfolio and can lead to a depletion of assets over time if not managed carefully. Market conditions and the performance of the underlying assets are critical factors that can influence the sustainability of distribution rates.
Investors should be aware that a distribution is not always derived from income; it can also come from capital gains or return of capital, which have different tax implications. The fund's ability to maintain its distribution rate without eroding its capital base is a important aspect for long-term viability and investor confidence.
Kingston, NY, April 01, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees of the Miller/Howard High Income Equity Fund (NYSE: HIE) (the “Fund”) declares cash distributions of
HIE: CUSIP–600379 101
| Declaration | Ex-Date | Record | Payable |
| April 1, 2024 | April 22, 2024 | April 23, 2024 | April 30, 2024 |
| April 1, 2024 | May 23, 2024 | May 24, 2024 | May 31, 2024 |
| April 1, 2024 | June 20, 2024 | June 21, 2024 | June 28, 2024 |
The Fund’s current indicated distribution rate based on its closing price on the New York Stock Exchange on March 28, 2023 (
Each quarter, the Board of Trustees reviews the Adviser’s recommended amount of any potential distribution to shareholders. The Board of Trustees will monitor the Fund’s distribution level. The Fund’s distribution rate may be affected by numerous factors, including changes in realized and projected market returns, Fund performance and other factors. There can be no assurance that an unanticipated change in market conditions or other unforeseen factors will not result in a change in the Fund’s distribution rate at a future time. The distribution rate should not be considered the dividend yield or total return on an investment in the Fund.
About the Fund
The Miller/Howard High Income Equity Fund seeks high current income, and secondarily long-term capital appreciation, by investing in high-yielding equities strategically allocated across multiple sectors and industries focusing on companies that we view to have a high current yield, growth of dividends and financial strength. The Fund has a 10 year term limit. It will terminate on November 24, 2024 unless the Board of Trustees determines that it is in the best interests of the shareholders to extend the term limit for one year or if shareholders vote to shorten or extend the life of the Fund. Upon termination of the Fund, shareholders will receive the NAV per share.
The Fund is managed by Miller/Howard Investments Inc., based in Kingston, New York. Miller/Howard Investments Inc.’s total firm assets as of December 31, 2023 were approximately
For information, call shareholder servicing:
American Stock Transfer
1-800-937-5449
FAQ
What is the cash distribution per share announced by the Miller/Howard High Income Equity Fund (HIE) for April, May, and June 2024?
What is the current indicated distribution rate for the Fund based on the closing price on the New York Stock Exchange on March 28, 2023?
How often does the Fund intend to pay distributions to its shareholders?
What factors may affect the Fund's distribution rate according to the Board of Trustees?
Can the distribution rate be considered as the dividend yield or total return on an investment in the Fund?
