Hyperion 1997 Term Trust Declares Monthly Dividend

Strategic Insights -

The Hyperion 1997 Term Trust, Inc. has declared a monthly dividend of $0.04583 per share, payable to shareholders of record as of April 17, 1995. This dividend represents a significant return on investment, with a monthly return of 5.50% (an annualized rate) on the Trust's initial offering price of $10.00 per share. The Trust's current yield on shares is 7.10%, surpassing the yield on the 2-Year Treasury Note by 46 basis points.

Key Takeaways:

  • The Hyperion 1997 Term Trust, Inc. has declared a monthly dividend of $0.04583 per share, payable to shareholders of record as of April 17, 1995.
  • The dividend represents a monthly return of 5.50% (an annualized rate) on the Trust's initial offering price of $10.00 per share.
  • The Trust's current yield on shares is 7.10%, which is 46 basis points greater than the current yield on the 2-Year Treasury Note.
  • The Hyperion 1997 Term Trust, Inc. is a diversified, closed-end management investment company with investment objectives focused on providing high current income and returning at least $10.00 per share to investors on or shortly before November 30, 1997.
  • The Trust invests in securities with a high credit quality, either issued or guaranteed by the U.S. Government or its agencies, or rated in the highest rating category by a nationally recognized agency.
  • The Trust is actively managed with an average duration of 2.5 to 3.5 years and a current average life of the securities in the portfolio of approximately 3.5 years.
  • As of April 6, 1995, the Trust's portfolio breakdown consists of over 80% mortgage-backed securities and collateralized mortgage obligations.

Statistics:

  • Monthly dividend per share: $0.04583
  • Monthly return: 5.50% (annualized rate)
  • Current yield on shares: 7.10%
  • Current yield on 2-Year Treasury Note: 6.64% (46 basis points lower)
  • Initial offering price per share: $10.00
  • Current net asset value per share: $8.10
  • Portfolio breakdown:

+ Mortgage-Backed Securities: 18.48%

+ Collateralized Mortgage Obligations (CMOs): 16.07%

+ Municipal Securities: 18.17%

+ Asset-Backed Securities: 18.69%

+ Adjustable Rate Mortgages (ARMs): 1.40%

+ Interest-Only Securities (IOs): 3.60%

+ PAC IOs: 1.41%

+ Principal-Only Securities (POs): 2.33%

+ Treasuries: 19.85%

Sources:

  • "Hyperion 1997 Term Trust Declares Monthly Dividend." Business Wire, April 7, 1995.