PDI: The Big Premium, I'll Be Back, 10.1% Yield

Oct. 01, 2021 8:00 AM ETPIMCO Dynamic Income Fund (PDI)PDO, PTY, PDI68 Comments
Blue Harbinger
Investing Group Leader

Summary

  • PIMCO's 10.1% yield CEF, PDI, has watched its big premium (market price versus NAV) shrink as a large merger looms imminent.
  • With regards to the big premium, and as Arnold Schwarzenegger's Terminator character once said: I'll be back!
  • In addition to considering PDI, this article also shares views on other high-income PIMCO monthly pay CEFs, including PCI, PKO, PTY and PDO.
  • This idea was discussed in more depth with members of my private investing community, Big Dividends PLUS. Learn More »
Terminator Genisys Latin American Press Junket

I'LL BE BACK

Raphael Dias/Getty Images Entertainment

Often an income investor favorite, 2021 continues to be an interesting year for PIMCO’s lineup of big-distribution, monthly-pay, fixed-income closed-end funds (CEFs). For example, we’ve seen the launch of a new winner, a distribution cut from a perennial favorite, and now an imminent merger and sharply declining premiums

As mentioned, the 8 high-income CEFs we currently own are included within our 38-position Income Equity Portfolio (along with an attractive mix of additional high-income opportunities, including big-dividend REITs, BDCs, common equities and others). All the details are available to members of Big Dividends PLUS. And we are currently offering a rare 20% discount to all new subscribers.

This article was written by

Blue Harbinger
20.73K Followers

Mark D. Hines | Private Investor. Former allocator and buyside PM. Now building Blue Harbinger Research (top ideas plus the “High Income NOW” and “Disciplined Growth” portfolios) and Herrick Lake Investments (helping you make informed decisions). University of Chicago Booth MBA, BS in Finance from the University of Illinois at Urbana-Champaign.

x.com/hinesmarkd | linkedin.com/in/hinesmarkd

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PCI 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. I have no business relationship with any company whose stock is mentioned in this article.

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