Sunday, October 09, 2011 9:25:54 AM
Posted Mar 17th 2010 11:40AM by Steven Halpern
Filed under: Newsletters, Stocks to Buy
For a stellar yield of 8.8%, superb track record and a healthy exposure to sovereign debt, it's hard to beat the AllianceBernstein Global High Income Fund (AWF)," says income expert Amy Calistri.
The editor of The Daily Paycheck -- an advisory that monitors an ongoing $250,000 portfolio of yield-oriented stocks, the advisor explains, "And when it comes to income, AWF is as steady as they get, having spewed out monthly paychecks for nearly 17 years. Since its 1993 inception, this closed-end fund has delivered an average annual return of +12.0%."Calistsri continues, "Approximately 30% of the fund's portfolio holdings are related to sovereign debt, while the balance is held in corporate debt and asset-backed securities.
"With 688 total holdings, it might be hard to find a portfolio as diversified as AWF's. Roughly 50% of the holdings are from the United States. However, the holdings hail from 51 different countries over all.
"When it comes to its corporate holdings, AWF seeks to avoid loading up on one sector in particular.
In the most recent filing, the fund managers noted that bonds in industrial companies make up about 30% of the portfolio, with lesser exposure to consumer, telecom, energy, and finance stocks.
"These bonds aren't blue chips, but many are still household names. For instance, it holds debt from the department store Macy's. Debt issued by Time Warner Telecom is another holding.
The building material company Owens Corning and L-3 Communications, a company specializing in military technology, also have debt in AWF's portfolio. But while they may be familiar names, they don't always come with the "best credit ratings.
"AWF tends to favor emerging market sovereign debt, and has bonds issued by governments such as Argentina, Brazil, and Indonesia. Yes, higher risk -- but yes, higher income.
"AWF raised its monthly dividend in December 2009 to $0.10 per share from $0.0925 per share. It's new annual dividend of $1.20 per share represents a yield of 8.8% at current prices ($1.20/$13.59).
"The fund is leveraged, but only by 11.0% -- which is not as high as many of its peers. This serves to increase the fund's income, as it can borrow at lower rates and invest in more loans at higher rates.
"But it can also be a source of risk in a protracted downturn. AWF is trading at a slight discount to its net asset value (NAV), which also gives investors a slight advantage on yield.
"Action to Take --> When it comes to credit quality, AWF is on the riskier side. But after 17 years, these fund managers have clearly demonstrated they know how to manage risk.
"And diversification has obviously served this fund well. The fund can be volatile, although the income stream is as dependable as the sunrise."
BLOGGINGSTOCKS.COM
Steven Halpern's TheStockAdvisors.com offers a free daily review of the favorite stock ideas of the nation's top financial newsletter advisors.
Recent AWF News
- AllianceBernstein Global High Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE • PR Newswire (US) • 04/23/2024 08:09:00 PM
- ALLIANCEBERNSTEIN CLOSED-END FUNDS ANNOUNCE DISTRIBUTION RATES • PR Newswire (US) • 04/23/2024 08:09:00 PM
- ALLIANCEBERNSTEIN CLOSED-END FUNDS ANNOUNCE DISTRIBUTION RATES • PR Newswire (US) • 03/26/2024 08:06:00 PM
- AllianceBernstein Global High Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE • PR Newswire (US) • 03/26/2024 08:06:00 PM
- Form NPORT-P - Monthly Portfolio Investments Report on Form N-PORT (Public) • Edgar (US Regulatory) • 02/27/2024 10:23:17 PM
- AllianceBernstein Global High Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE • PR Newswire (US) • 02/27/2024 09:06:00 PM
- ALLIANCEBERNSTEIN CLOSED-END FUNDS ANNOUNCE DISTRIBUTION RATES • PR Newswire (US) • 02/27/2024 09:06:00 PM
- ALLIANCEBERNSTEIN GLOBAL HIGH INCOME FUND, INC. REPORTS THIRD QUARTER EARNINGS • PR Newswire (US) • 02/23/2024 09:06:00 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 02/22/2024 09:31:05 PM
- ALLIANCEBERNSTEIN CLOSED-END FUNDS ANNOUNCE DISTRIBUTION RATES • PR Newswire (US) • 01/23/2024 09:06:00 PM
- AllianceBernstein Global High Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE • PR Newswire (US) • 01/23/2024 09:06:00 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 01/10/2024 06:11:22 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 01/10/2024 02:32:59 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/10/2024 02:32:58 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/05/2024 10:32:30 PM
- ALLIANCEBERNSTEIN CLOSED-END FUNDS ANNOUNCE DISTRIBUTION RATES • PR Newswire (US) • 12/26/2023 09:06:00 PM
- AllianceBernstein Global High Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE • PR Newswire (US) • 12/26/2023 09:06:00 PM
- ALLIANCEBERNSTEIN GLOBAL HIGH INCOME FUND, INC. SPECIAL DISTRIBUTION • PR Newswire (US) • 12/01/2023 09:06:00 PM
- Form N-CSRS - Certified Shareholder Report, Semi-Annual • Edgar (US Regulatory) • 11/30/2023 04:09:59 PM
- AllianceBernstein Global High Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE • PR Newswire (US) • 11/28/2023 09:06:00 PM
- ALLIANCEBERNSTEIN CLOSED-END FUNDS ANNOUNCE DISTRIBUTION RATES • PR Newswire (US) • 11/28/2023 09:06:00 PM
- ALLIANCEBERNSTEIN GLOBAL HIGH INCOME FUND, INC. REPORTS SECOND QUARTER EARNINGS • PR Newswire (US) • 11/24/2023 09:06:00 PM
- AllianceBernstein Global High Income Fund, Inc. RELEASES MONTHLY PORTFOLIO UPDATE • PR Newswire (US) • 10/24/2023 08:06:00 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM