PIMCO Dynamic Income Fund: Its Moment Has Come

Jan. 07, 2023 2:39 AM ETPIMCO Dynamic Income Fund (PDI)BND, KKR, MCO131 Comments
Growth at a Good Price profile picture
Growth at a Good Price
7.52K Followers

Summary

  • PIMCO's dynamic income fund outperformed stocks in 2022, with a mere -15.55% price decline.
  • It has a 13.88% yield today.
  • Bonds tend to perform well after periods of rising interest rates, provided that most of the interest rate hiking is done.
  • It will only take one or two more rate hikes for the Fed to hit its terminal rate goal.
  • For this reason, I think PDI will become a great buy in the second quarter, maybe as soon as March.

Road sign with words bonds and stocks. White two street signs with arrow on metal pole on blue sky background.

Road sign with words bonds and stocks. White two street signs with arrow on metal pole on blue sky background.

Maria Vonotna

Last year was a comparatively good one for bonds, which out-performed stocks. Although bond funds declined for the year, they pulled

PDI vs S&P 500

PDI vs S&P 500 (Seeking Alpha Quant)

PDI holdings

PDI holdings (PIMCO)

This article was written by

Growth at a Good Price profile picture
7.52K Followers
Financial journalist. Passed CFA Level 1. "Growth at a reasonable price" investor. Tech and dividend growth. Like classic value plays as well as GARP-y tech stocks. Follow me on Twitter: twitter.com/AJButton2

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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