THQ: A 5.6% Cut Leaves An 11% Yield, But Payouts Now Follow NAV

Impact · against what's priced in

THQ's shift to a variable distribution policy introduces structural payout risk that offsets current high yields. The misalignment between a 4.91% five-year NAV return and an 11% yield suggests inevitable capital erosion, making the fund an unattractive entry point.

THQ−0.40

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In context

The shift to a 10% average NAV distribution policy makes payouts volatile, while a long-term NAV return of 4.91% cannot sustain the current 11% yield without eroding capital.

Read from the article alone

• healthcare
• THQ
• cef
• distribution policy
• investment trust
• nav
• payouts

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