Western Asset High Income Opportunity Fund Inc.
HIOFinancial Services · Stock · monthly payer
Forward Yield
12.95%
Annual Dividend
$0.43
Payout Ratio
142%
5-Yr Growth
1.9%
Ex-Date
Oct 23, 2026
Frequency
Monthly
Summary
As of September 2026, Western Asset High Income Opportunity Fund Inc. (HIO) yields 12.95% ($0.43 per share annually), with a blended fair-value estimate of $6.67 — +96% upside, so it screens as undervalued. Dividend safety grade: C (59/100).
Is HIO a good dividend stock?
Yes, with caveatsWestern Asset High Income Opportunity Fund Inc. (HIO) pays a monthly dividend yielding 12.95% ($0.43/yr), with 0 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
Risks
- Cut its dividend in 2021
- Elevated payout ratio (142%)
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 12.95%
- Payout Ratio
- 142%
- Annual Dividend
- $0.43
- 5-Yr Avg Growth
- 1.9%
- Ex-Dividend Date
- Oct 23, 2026
- Years of Growth
- 0
- Frequency
- monthly
- Beta
- 0.51
- Market Cap
- $311.0M
- P/E Ratio
- 10.9
- 5-Yr Total Return
- -35%
- 52-Week Range
- $3.34 – $4.04
- Dividend Safety
- C · 59/100
- Ever Cut?
- Yes (2021)
Frequently Asked Questions
HIO Price — Last 12 Months
Daily close
Price Return
1 Year
-12%
3 Years
-7%
5 Years
-35%
52-Week Range
$3.34 – $4.04
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is HIO worth?
Undervaluedlow confidenceOur blended fair-value estimate for Western Asset High Income Opportunity Fund Inc. is $6.67 per share, versus a market price of $3.40. That implies 96% of upside — a margin of safety of about 49%.
Fair Value
$6.67
Current Price
$3.40
Upside
+96%
Margin of Safety
49%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
Assumptions: 7.0% discount rate (CAPM), 1.8% stage-1 growth, 2.5% terminal growth, $0.30 EPS, $0.43 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
HIO Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
Full HIO dividend history →| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Sep 23, 2026 | — | $0.0360 | regular |
| Aug 24, 2026 | — | $0.0360 | regular |
| Jul 24, 2026 | — | $0.0360 | regular |
| Jun 23, 2026 | — | $0.0360 | regular |
| May 21, 2026 | — | $0.0360 | regular |
| Apr 23, 2026 | — | $0.0360 | regular |
| Mar 24, 2026 | — | $0.0360 | regular |
| Feb 20, 2026 | — | $0.0360 | regular |
| Jan 23, 2026 | — | $0.0360 | regular |
| Dec 23, 2025 | — | $0.0360 | regular |
| Nov 20, 2025 | — | $0.0360 | regular |
| Oct 24, 2025 | — | $0.0360 | regular |
| Sep 23, 2025 | — | $0.0360 | regular |
| Aug 22, 2025 | — | $0.0360 | regular |
Income Calculator
At $0.43 / yr per share
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