Triple-Factor Closed-End Fund Report, September 2026: HFRO's Discount Keeps Widening

Summary Our Triple-Factor screen identifies closed-end funds combining a yield above 6.5%, distribution coverage above 90%, and a discount to NAV, screening over 400 CEFs as of the close of September 15, 2026. Portfolio holdings Highland Opportunities and Income (HFRO), BNY Mellon High Yield Strategies (DHF), PIMCO Dynamic Income Opportunities (PDO), and Blackstone Strategic Credit 2027 (BGB) all rank among this month's top lists. As a reminder, these top lists are meant to be preliminary shortlists for further research, and are not meant to be the final analysis for a buy or sell decision. Looking for a portfolio of ideas like this one? Members of CEF/ETF Income Laboratory get exclusive access to our subscriber-only portfolios. Learn More » AlexSecret/iStock via Getty Images "Triple-Factor" Closed-End Fund Report (This was formerly the "High-High-Low" CEF Report, now renamed to better reflect the systematic screening for three key attributes: high yield, strong coverage and discount to NAV) Our systematic approach screens This article was written by Stanford Chemist 20.84K Followers Follow Stanford Chemist is a scientific researcher by training. For the past decade he has been providing analysis and evidence-based ways of generating profitable investments with CEFs and ETFs. He leads the investing group CEF/ETF Income Laboratory. Features of the service include: managed income portfolios (targeting safe and reliable ~8% yields) making use of high-yield opportunities in the CEF and ETF fund space. These are geared toward both active and passive investors of all experience levels. The vast majority of {CEF/ETF Income Laboratory} holdings are also monthly-payers, for faster compounding and steady income streams. Other features include 24/7 chat, and trade alerts. Analyst’s Disclosure: I/we have a beneficial long position in the shares of HFRO, BGB, DHF, PDO, FLC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.