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Financial services

Hyperion 1999 Term Trust Declares Monthly Dividend

Strategic Insights

— 2 min read

The Board of Directors of the Hyperion 1999 Term Trust, Inc. has declared a monthly dividend of $0.04583 per share, marking a monthly return of 5.50% (an annualized rate) on the Trust's initial offering price of $10.00 per share. This dividend represents a significant yield on shares, with the current yield on the Trust based on the NYSE closing price of $6.875 on April 6, 1995 being 8.00%, which is 109 basis points greater than the current yield on the 5-Year Treasury Note. The Trust's investment objectives are to provide shareholders with a high level of current income consistent with investing in securities of the highest credit quality and to return at least $10.00 per share to investors on or shortly before November 30, 1999.

Key Takeaways:

  • The Board of Directors of the Hyperion 1999 Term Trust, Inc. has declared a monthly dividend of $0.04583 per share, representing a monthly return of 5.50% (an annualized rate) on the Trust's initial offering price of $10.00 per share.
  • The current yield on the Trust based on the NYSE closing price of $6.875 on April 6, 1995 is 8.00%, which is 109 basis points greater than the current yield on the 5-Year Treasury Note.
  • The Trust's investment objectives are to provide shareholders with a high level of current income consistent with investing in securities of the highest credit quality and to return at least $10.00 per share to investors on or shortly before November 30, 1999.
  • The Trust is actively managed to take advantage of relative value opportunities in various sectors of the mortgage market, with an average duration of 2.5 to 3.5 years.
  • The average life of the securities in the portfolio is approximately 4.5 years.
  • The Trust invests in securities that are either issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities or are rated in the highest rating category by a nationally recognized agency (e.g., AAA by Standard & Poor's Corporation or Aaa by Moody's Investors Service, Inc.).

Statistics:

  • Monthly dividend: $0.04583 per share
  • Annualized rate of return: 5.50%
  • Current yield on the Trust based on the NYSE closing price: 8.00%
  • Difference between current yield on the Trust and the 5-Year Treasury Note: 109 basis points
  • Average duration of the Trust's portfolio: 2.5 to 3.5 years
  • Average life of the securities in the portfolio: approximately 4.5 years
  • Initial offering price per share: $10.00
  • NYSE closing price on April 6, 1995: $6.875

Sources:

  • Business Wire, "Hyperion 1999 Term Trust Declares Monthly Dividend" (April 7, 1995)

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