Q: What do you think of HUBL for income generation and do you think the 9-10% yield is sustainable?
Any better alternatives in the 8-10% range?
Any better alternatives in the 8-10% range?
5i Research Answer:
HUBL's distribution can vary, but it has not been lowered since inception, and has been raised twice (8.3c to 9c to 10c). A bad banking sector correction could see it decline, but the call option income strategy should provide some ongoing good income. We would be fine owning this, but it does have sector exposure. There are some more diversified income funds, such as HDIV, but this uses 0.25x leverage as well.