PDI Is Not A Buy, Here's Why

Jun. 03, 2024 11:45 AM ETPIMCO Dynamic Income Fund (PDI)PDI48 Comments

Summary

  • PIMCO Dynamic Income Fund has seen a significant run-up since October 2023, but the upside from here is limited.
  • It may be prudent to sell some and repurchase on the next decline, as shares are unlikely to appreciate greatly.
  • The PDI closed-end fund is a strong income powerhouse in the long term, but buying at current levels may not be ideal.
  • The impact of rate cuts is unclear, but trade around the NAV.
  • Underwater investors on paper can make that up with the bountiful monthly paychecks, but it is still wise to be more active in your holdings.
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PIMCO Dynamic Income Fund (NYSE:PDI) is a name that we called for a buy in October 2023, essentially catching the yearly bottom. Recall that this is a closed-end mutual fund or CEF. PIMCO Dynamic Income fund, herein referred to as

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