Latest news with #SRHTotalReturnFund
Forbes
12-08-2025
- Business
- Forbes
This ‘Buffett Favorite' Dividend Is An Incredible CEF Bargain
When it comes to a closed-end fund (CEF), many investors are always focused on one thing: the dividend. It makes sense: CEFs pay 8.5% yields, on average, according to data from my CEF Insider service. But sometimes it pays to look beyond those big payouts, because by doing so, you could find a CEF with a track record so strong that its total return (dividends and gains combined) beats that of a CEF with a high yield. I don't know about you, but I'm willing to take more of my return in the form of price gains if it means, say, doubling my money in five years! This CEF Winner Is Hiding Behind Its 'Low' Payout That's been the case with the SRH Total Return Fund (STEW), whose dividend—at 3.8%—is pretty, well, meh, for a CEF. As a result, it's often overlooked, which is what's happening now. We can see that in the fund's discount to net asset value (NAV, or the value of its underlying portfolio), which is just under 20% today (more on this shortly). That ridiculous discount is an insult to this proven fund, which has doubled an investor's money, with dividends reinvested, in the last half-decade. That's a fantastic return by any measure. It even beat the S&P 500, which is up around 103% since then. The funny thing is, the strategy behind this money-making fund is simple, which is why its bargain valuation is so surprising. Inspired by Warren Buffett, STEW uses a value-investing approach that makes the fund less volatile than the broader market while helping it rise in value over the long haul. Its largest investment is in Berkshire Hathaway (BRK.A, BRK.B), which is about 45% of the fund's assets. Additionally, STEW looks for valuable underpriced stocks, which is why it also holds JPMorgan Chase & Co. (JPM), pipeline operator Enterprise Products Partners (EPD), Microsoft (MSFT) and other high-quality firms with long histories of returning cash to shareholders through dividends and stock buybacks. This is all good stuff, but now let me show you the best part: that bargain valuation I mentioned a second ago. This is where a big difference between CEFs and ETFs comes in: ETFs can issue shares as necessary, so they don't trade at discounts (or at least significant ones). But STEW, as a CEF, has a fixed number of shares (hence the 'closed' in the term 'closed-end fund'). As a result, a CEF's shares can trade up or down depending on market demand, in addition to their movements on the value of the fund's assets. That, in turn, means CEFs can sometimes trade well below NAV. And STEW's discount, as I mentioned a second ago, is truly massive: just under 20%! Note that this markdown was even wider in recent months. In fact, STEW's discount has slowly grown larger over the last five years despite the fact that the fund beat the market. This inefficiency can't last, which is why STEW's discount suddenly shrank in recent weeks. Its discount is likely to shrink further as more investors catch on. All of this might sound familiar if you've been reading my articles for a while, because in a March 31, 2025, piece, I pointed out that STEW's massive (then 23.1%) discount was unlikely to last. It has shrunk a bit since then, and I see it shrinking more. Now, let me wheel back to the dividend part of the picture here. To be sure, that 3.8% payout is, as mentioned, on the small side for a CEF. But it's also masking something else, besides STEW's strong total return: dividend growth. That too has been strong, with the payout soaring 62% in the last five years. And lately, STEW's payout growth has been accelerating: It's just another reason why with CEFs (or any income investment, really), it pays to look beyond the yield. STEW, with its discount, performance history and growing payout, is a perfect example of that. Michael Foster is the Lead Research Analyst for Contrarian Outlook. For more great income ideas, click here for our latest report 'Indestructible Income: 5 Bargain Funds with Steady 10% Dividends.' Disclosure: none
Associated Press
08-05-2025
- Business
- Associated Press
SRH Total Return Fund, Inc. Declares Quarterly Distribution
DENVER, CO / ACCESS Newswire / May 8, 2025 / SRH Total Return Fund, Inc. (NYSE:STEW) (the 'Fund') announced the declaration of a quarterly distribution of $0.1650 per share to occur in July 2025. This distribution is being paid as part of the Fund's managed distribution program under which the Fund intends to make per share distributions of $0.1650 per quarter or approximately $0.66 per year. As of market close on May 5, 2025, the distribution (on an annualized basis) amounts to approximately 3.84% of the Fund's market price and 3.11% of its net asset value ('NAV'). Due to the current discount of the Fund's market price to its per share NAV and the fact that distributions are made in cash (i.e., at NAV), if Fund shares continue to trade at a discount at the time of this distribution, then it will be accretive to the Fund's market-price-based return. The July 2025 quarterly distribution will be payable in cash to stockholders of record per the following critical dates: As previously announced, the Board of Directors instituted a managed distribution program in accordance with its Section 19(b) exemptive order in November 2015. In adopting the program, the Fund seeks to provide a regular quarterly distribution to its common stockholders which is not dependent on the amount of income earned or capital gains realized by the Fund. Investors should not make any conclusions about the Fund's investment performance from the amount of the Fund's distributions or the Fund's distribution policy. With each distribution that does not consist solely of net investment income, the Fund will issue a notice to shareholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during its full fiscal year and may be subject to changes based on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year that will tell them how to report these distributions for federal income tax purposes. _______________ The Fund SRH Total Return Fund, Inc. is a non-diversified closed-end investment company traded on the New York Stock Exchange under the trading symbol 'STEW'. As of May 5, 2025, the Fund's NAV was $21.24 per share and the closing market price was $17.18 (a 19.11% discount to NAV). For more information on the Fund, please visit the Fund's webpage at The Fund is a closed-end fund and does not continuously issue stock for sale as open-end mutual funds do. The Fund now trades in the secondary market. Investors wishing to buy or sell stock need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market value. Paralel Advisors LLC Paralel Advisors LLC serves as the investment advisor to the SRH Total Return Fund. Together with our parent company, Paralel Technologies LLC, we develop technology-based solutions to better serve investors. SRH Advisors, LLC SRH Advisors, LLC (formerly known as Rocky Mountain Advisers, LLC), is an investment adviser registered with the SEC based out of Kansas. More information about SRH is available at as well as NOT FDIC INSURED | May Lose Value | No Bank Guarantee Contact info: Website: Email: [email protected] SOURCE: SRH Total Return Fund, Inc. press release
