Sleep Like a Baby with Up to 9% Yields

The article discusses the potential for high yields in investments, likening them to a baby's ability to sleep soundly despite waking up multiple times. Co-authored with Hidden Opportunities, the article emphasizes the importance of not stressing about unexpected events and finding opportunities in unexpected places. The authors encourage readers to take a similar approach to investing and explore unconventional options for high yields.

High-yield investments have long been a staple for income-focused investors, but they often come with their own set of challenges. The analogy of a baby sleeping soundly despite waking up multiple times can be aptly applied to these investments. This article explores the potential for high yields, drawing insights from recent announcements by Neuberger Berman High Yield Strategies Fund and Steel Dynamics, Inc.

Neuberger Berman High Yield Strategies Fund

Neuberger Berman High Yield Strategies Fund Inc. (NYSE American: NHS) recently announced a monthly distribution of $0.0905 per share of common stock [1]. This distribution, payable on August 29, 2025, is part of the fund's level distribution policy, which aims to provide regular monthly distributions, subject to market conditions. The fund's ability to maintain this distribution rate depends on factors such as income received from investments, cost of leverage, and other fees and expenses.

The fund's distribution policy allows for flexibility in the composition of the distribution, which may include net investment income, net realized capital gains, and return of capital. This approach helps the fund maintain a stable distribution amount while navigating varying market conditions. Investors should be aware that there is no assurance that the fund will always be able to pay a distribution of any particular amount or that a distribution will consist solely of net investment income.

Steel Dynamics, Inc.

Steel Dynamics, Inc. (NASDAQ: STLD) has emerged as a compelling investment thesis in 2025, combining the resilience of a stabilizing steel market with a high-conviction pivot into aluminum production and disciplined capital allocation practices [2]. The company's growing dividend yield of 1.47% as of June 2025, coupled with an aggressive share repurchase program, positions it as a rare blend of defensive cash flow and growth potential.

Steel Dynamics' strategic steel market positioning, aluminum expansion, and disciplined capital allocation practices create a compelling risk-reward profile. The company's vertically integrated operations and cost discipline have insulated it from market headwinds, while its entry into the aluminum flat rolled products market aligns with global decarbonization mandates and rising demand for lightweight materials.

Finding Opportunities in Unconventional Places

The analogy of a baby sleeping soundly despite waking up multiple times can be applied to high-yield investments. Just as a baby can rest peacefully despite interruptions, investors can navigate high-yield investments by staying informed and prepared for unexpected events. This approach emphasizes the importance of not stressing about unexpected events and finding opportunities in unexpected places.

Investors should explore unconventional options for high yields, such as high-yield bonds, dividend stocks, and alternative investments. By diversifying their portfolios and staying informed about market trends, investors can position themselves to capitalize on high-yield opportunities while mitigating risks.

Conclusion

High-yield investments offer the potential for attractive returns, but they also come with their own set of challenges. By learning from the strategies employed by funds like Neuberger Berman High Yield Strategies Fund and companies like Steel Dynamics, investors can navigate the complexities of high-yield investments and find opportunities in unexpected places. The key is to stay informed, diversify, and maintain a long-term perspective.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250731ny41904/neuberger-berman-high-yield-strategies-fund-announces-monthly-distribution
[2] https://www.ainvest.com/news/steel-dynamics-stld-high-yield-materials-play-diversified-growth-catalysts-2025-2508/