PDT: CEF That Preserves Capital And Provides Monthly Income

Cain Lee
6.02K Followers
(13min)

Summary

  • PDT offers reliable, tax-efficient income and capital preservation, making it a strong choice for retirement-focused investors seeking stability and monthly payouts.
  • The fund trades at a 2.8% discount to NAV, presenting an attractive entry point, though higher interest rates and leverage pose growth risks.
  • PDT's portfolio emphasizes income-generating sectors like Financials and Utilities, with a blend of common stocks, preferreds, and bonds for diversification.
  • While not ideal for aggressive growth, PDT's long-term consistency, solid dividend history, and defensive sector exposure support my continued buy rating.

An older couple enjoying a cup of coffee on their deck overlooking the mountains.

Jordan Siemens

Overview

When it comes to finding the proper investment for funding your retirement, there needs to be a baseline level of reliability and stability. For instance, the fund shouldn't have a track record of deteriorating investor capital over long stretches

This article was written by

6.02K Followers
Financial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I create a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PDT over 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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