From Seekingalpha · Miller-Howard Investments · · 1m 30s
Miller-Howard Q2 2026 Quarterly Report
High-yield stocks outperform broad market despite elevated valuations.
In brief
High-yield stocks outperform broad market despite elevated valuations. Miller-Howard's high-yield portfolios offer 3.4% dividend yield with 5.3% annualized growth potential amid market volatility. Originally reported by Seekingalpha.
S&P 500 Dividend Yield Drops
S&P 500 dividend yield fell to its lowest level in over 55 years, dropping below 1.1% in May 2026.
High-Yield Stocks Outperform
High-yield stocks offer more attractive relative returns compared to low-yielders and non-payers in current market conditions.
Elevated P/FE Ratios
S&P 500 trades at 25.5x P/E ratio with high-yield portfolios at 17.0x P/E ratio in Q2 2026.
Dividend Growth Projections
Miller-Howard projects 5.3% annualized dividend growth for income equity portfolios versus 6.8% for S&P 500.
Dividend Coverage Strength
Income equity portfolios maintain 1.9x dividend coverage ratio with reasonable leverage levels at 2.8x net debt/EBITDA.
Midstream Energy Performance
Midstream energy portfolios outperform benchmarks with 2.6% average dividend growth in Q2 2026.
Infrastructure Portfolio Strength
Infrastructure portfolio offers 2.8% dividend yield with strong growth potential and low common holdings with S&P 500.
North American Energy Outlook
North American energy portfolio benefits from higher oil prices and increased LNG demand in Q2 2026.
Yield Comparison
Income equity portfolios offer 3.4% dividend yield versus 1.1% for S&P 500 in Q2 2026.
Market Performance
Income equity portfolios outperform Russell 1000 Value Index with 11.53% annualized return in Q2 2026.
The one thing
Miller-Howard's high-yield portfolios offer 3.4% dividend yield with 5.3% annualized growth potential amid market volatility.
