Invesco High Income Trust II and Invesco Senior Income Trust: Dividend Declarations and Market Impact

Invesco High Income Trust II (VLT) and Invesco Senior Income Trust (VVR) have recently declared their monthly dividends for January 2025, with VLT maintaining its dividend at $0.0964 per share and VVR reducing its dividend to $0.0380 per share. These dividend declarations have sparked interest in the market, with investors eager to understand the implications of these changes on the Funds' yields and their attractiveness to income-oriented investors.



Invesco High Income Trust II (VLT):
- Maintained monthly dividend at $0.0964 per share
- Yield: 11.57% (based on a hypothetical share price of $10)
- Attractive to income-oriented investors seeking stable, high yields

Invesco Senior Income Trust (VVR):
- Reduced monthly dividend to $0.0380 per share (from $0.0430)
- Yield: 4.56% (based on a hypothetical share price of $10)
- Less attractive to yield-focused investors, but may still appeal to those valuing consistency



The dividend changes have led to shifts in the Funds' yields, with VLT maintaining its high yield and VVR becoming less attractive to yield-focused investors. However, it is essential to consider other factors, such as risk, diversification, and investment objectives, when comparing these Funds with other income-focused investments like REITs and utilities.



Historically, the correlation between dividend changes and the Funds' share price performance has been limited. While both Funds have experienced fluctuations in their share prices, there is no clear relationship between dividend changes and share price performance. The Funds' share prices have been influenced by various factors, such as market conditions and investment performance, rather than solely by dividend changes.

In conclusion, the dividend declarations by Invesco High Income Trust II (VLT) and Invesco Senior Income Trust (VVR) have had an impact on the Funds' yields and their attractiveness to income-oriented investors. While VLT maintains its high yield, making it appealing to investors seeking stable income, VVR's reduced dividend may make it less attractive to yield-focused investors. However, the Funds' dividend payout ratios and historical share price performance should be considered when evaluating their competitive positions in the market. As always, investors should conduct thorough research and consider their individual investment goals and risk tolerance when making investment decisions.