Harvesting Gains, Repositioning For Income

At High Dividend Opportunities, our approach has always been built around one simple principle: maximize your income while remaining disciplined with valuation, risk, and portfolio positioning.

That discipline means we are just as willing to sell positions as we are to buy them.

Recently, we exited LyondellBasell Industries (LYB) after securing total returns ranging from ~30% to over 70% for our members within roughly a 12-month period, depending on their time of purchase. We also closed our position in the BlackRock Energy and Resources Trust (BGR), a holding we maintained since late 2019, locking in a total return exceeding 107%!

These outcomes reflect the advantage of disciplined income investing. We are not emotionally attached to positions. When valuations become stretched, yields compress, or better risk-adjusted opportunities emerge elsewhere, we recycle capital proactively.

We also saw a lot of activity in our fixed income portfolio in recent months.

Since late 2025, several of our baby bonds and term preferred positions were redeemed at par,  generating double-digit returns, and allowing us to harvest both high income and capital appreciation opportunities. This included positions such as:

• LTSL — Ladenburg Thalmann Financial Services 7.75% Senior Notes due 2027 (Called, 66% Total Return)

• LTSF — Ladenburg Thalmann Financial Services 7.00% Senior Notes due 2028 (Called, 70% Total Return)

• SPNT-B — SiriusPoint Ltd. 8.00% Resettable Fixed Rate Preference Shares Series B (Called, over 40% Total Return)

• ECCF — Eagle Point Credit Company 8.00% Notes due 2029 (Called, 15.5% Total Return since Feb 2024)

• METCL — Ramaco Resources 9.00% Senior Notes due 2026 (Matured, 24.6% Total Return)

• HROWL — Harrow Health 8.625% Senior Notes due 2026 (Called, 35.5% Total Return)

• SPLPP — Steel Partners Holdings L.P. 6.0% Series A Preferred Units due 2026 (Matured, 50% Total Return)

• BWSN — Babcock & Wilcox Enterprises 7.75% Senior Notes due 2027 (Called, 36.5% Total Return)

Additionally, Xoma Corp (XOMA) preferreds, XOMAO and XOMAP, are expected to be called following the completion of the pending acquisition transaction (currently over 40% Total Returns)

These are precisely the types of opportunities we continuously seek: securities capable of generating attractive income today while also offering strong downside protection and favorable redemption dynamics. This predictable release of capital allows us to always be net buyers in the financial markets. As such, we continue positioning our portfolio for the future.

Since August 2025, we have added eight baby bonds into the 2030-2031 rungs of our maturity ladder while also expanding our allocation to preferred shares with nine perpetual preferreds added in recent months.

This is the advantage of active income management.

We are constantly rotating capital across individual companies, diversified funds, preferreds, baby bonds and other income opportunities to balance:

• Yield

• Risk

• Duration

• Credit quality

• Income stability

HDO is about building a diversified income machine designed to generate durable cash flow through all market environments while opportunistically positioning for portfolio value appreciation when the market gives them to us. Our members gain a disciplined framework that removes emotion from investing decisions and focuses on what truly matters: building reliable and growing income streams over time.

Markets will always fluctuate. Headlines will always create fear and excitement. Our job is to stay disciplined, collect income, and continuously optimize the portfolio for both income and total return.

That is exactly what we continue to do every single day at High Dividend Opportunities.

Take 10% off your first-year membership!. Join us to see how a disciplined high-yield income strategy can help strengthen your portfolio for the long run, and enable your financial independence and retirement on your terms.