Tekla Healthcare Investors (HQH) Stock

HQH has seen pressure recently due to regulatory uncertainty; while the closed-end funds discount has actually narrowed, it could be an interesting place to put some capital to work. The fund's 12% managed distribution policy has attracted interest from yield investors, though a quarterly pay may be less appealing. HQH's portfolio is tilted toward a heavier weight in biotech, with top holdings like Gilead Sciences showing resilience while others like Regeneron and Eli Lilly have struggled.

abrdn Healthcare Investors operates as a closed end fund that aims to provide total returns comprised of high current income. HQH offers a high-yielding dividend rate of 12.7% and distributions are paid out on a monthly basis. The fund's focus on biotech holdings makes it vulnerable to interest rate changes but also positions it for potential growth with lower rates.

The healthcare sector is traditionally defensive during economic downturns, but not all industries within the healthcare sector are created equal. abrdn Healthcare Investors Fund focuses on the more cyclical biotech space, with over half of its portfolio allocated there. HQH's managed distribution policy was increased significantly since our prior update, which was a factor in the funds discount narrowing, but it continues to trade at an attractive discount.

HQH features a deep NAV discount at 11%, it is cheap and offers good opportunity for price appreciation. Biotech sector is showing strength in recent market rally. HQH with high yield at 13% is a good buy for income investors to participate the promising biotech rally. Record financing activities in the sector fuel the business growth and set up for a sustainable market recovery.

What is your dream retirement? Make goals to achieve it. Don't make monetary number goals that can't answer the "what then?" question. I meet expenses head-on with highly valuable income.

$7.1 trillion is invested in passive ETFs, rocking the market with their inflows and outflows. Few passive ETFs help you achieve specific goals. We look for options to meet our income needs for a lifetime.

I can pay my bills in retirement with cash, and I get that cash from picks like these. Your retirement is going to cost you, so have a way to pay for it. Healthcare and Business Development Companies provide strong income to shareholders.

abrdn Healthcare Investors is a healthcare sector-specific closed-end fund that invests in a portfolio of common stocks in the healthcare industry, heavily weighted in biotechnology. The HQH CEF currently provides a very high yield of 11% plus a high discount of -15% to NAV. HQH has a solid long-term record of nearly 37 years, nearly matching the performance of the S&P 500. However, the recent near- and mid-term performance has been lackluster.

The abrdn Healthcare Investors (HQH) fund has a 36-year track record of underperforming peers that does not create confidence for future results. HQH focuses on mid and large-cap biotech and pharmaceutical companies in late-stage clinical trials i.e. FDA approval catalysts. Capital gains distribution requires reinvestment to achieve compounding returns.