Is HFRO a Friend, Question Mark or Foe?

HFRO is classified a Foe under the Income Quality Score framework, based on long-duration distribution and total-return history. This is a research classification, not investment advice.

How safe is the HFRO distribution?

A Foe is an income asset whose long-term distributions have historically outrun its economic total return, or whose distribution or working capital has eroded over time. It describes a weak historical income-quality record — it is not a prediction or a recommendation to sell.

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Public snapshot

HFRO Income Quality Score

Name: HFRO Income Quality Score
Creator: Income Quality Score
Keywords: HFRO income quality, HFRO dividend quality, HFRO dividend safety, HFRO distribution history, HFRO dividend score, HFRO analysis, Highland Funds I - Highland Income Fund dividend

Highland Funds I - Highland Income Fund (HFRO) has an Income Quality Score of 30/100, classified as a Foe with high confidence, based on a 10-year income and total-return history.

Highland Funds I - Highland Income Fund (HFRO) is a closed-end fund and is part of the IQ Score universe.

July 2026 Snapshot · Delayed

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Long-term focused10-year income and total-return analysis

Data-drivenObjective scoring across 4 quality, distribution and risk signals

Clear classificationFriends to own. Foes to avoid.

IQ Score Delayed

30/100

FoeHigh confidence

Asset Type

CEF

Exchange

NYSE

Trailing Yield (TTM)

Not published

No normalized trailing yield is published for closed-end funds in this snapshot.

Rank in CEF Universe

345 of 358

Lookback

10-year

Data as of

June 30, 2026

How the IQ Score works →

This is a delayed public snapshot. It's intentionally frozen at release — this July 2026 snapshot won't change. Subscribers get HFRO's current IQ Score and see the latest classification changes as they happen.

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HFROHighland Funds I - Highland Income Fund

30FoeHigh confidence

Snapshot: 2026-06
Data as of: 2026-06-30
Lookback: 10-year
Asset type: Closed-End Fund

IQ Score History

Reconstructed monthly scores are computed from current data and methodology. Published snapshots are the frozen monthly releases, marked on the line. Where the methodology changed, the line is broken rather than joined across the change.

Signals & Drivers

IQ signal scores

Each signal is normalised to 0–100 and combined by weight into the overall IQ Score.

Economic Payout Coverage

0/100

Working Capital Preservation

48/100

Distribution Cut Score

70/100

Distribution Trend

50/100

What to watch

Distributions exceed long-term total return
1–2 years with a material annual distribution decline

Flags & gates

Yield Trap

Distribution Safety

1Years raised

1Years cut

10Years of data

HeldCurrent trend

High confidence (10-year history)

20170.154Held
20180.924Raised
20190.924Held
20200.924Held
20210.924Held
20220.924Held
20230.924Held
20240.462Cut
20250.462Held
20260.231Partial year

Distributions per year, from the frozen distribution-stability signal.

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IQ Score is a long-duration quality and distribution-safety classification for income assets. It is research based on historical data, not personal investment advice, and it does not tell you what to buy or sell. Figures reflect a delayed public snapshot and may differ from current data.