Invesco Announces Steady Dividends for Closed-End Funds

Invesco has confirmed monthly dividends for its closed-end funds, maintaining current rates. Investors should consider the implications of these payments and associated risks, as market fluctuations may affect overall performance.

Date: 03-10-2024

AI Rating: 6

Invesco's recent announcement regarding the monthly dividend payments for the Invesco High Income Trust II and the Invesco Senior Income Trust signals stability in dividend distribution. The dividends are set at $0.09641 per share for High Income Trust II and $0.04301 per share for Senior Income Trust, which reflects consistency in their Managed Distribution Plans.

The decision to maintain these rates denotes a lack of immediate volatility in the funds, which could instill confidence in investors. However, investors are advised to consider potential long-term impacts, as these funds may distribute more than their income and include returning capital to shareholders. This practice, although may cushion immediate returns, poses risks to the funds' long-term performance.

Additionally, it is important for investors to recognize that these dividend returns may not directly correlate with the funds' investment performances due to market fluctuations and changes in tax regulations. Therefore, while the steady dividends may attract income-focused investors, they should remain cautious about the underlying risks.

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