This Dividend Just Took a 50% Haircut and It Will Get Worse

In investing, it’s just as important to know what to buy as what to avoid. And if there’s one thing you need to keep away from at all costs, it’s a dividend cut like the huge 50.6% slash the PIMCO Global StocksPLUS & Income Fund (PGP) announced on January 2. It caught first-level investors completely off guard (though it shouldn’t have, as I’ll explain in a moment). Here’s how they responded: And Down She Goes If you’re a regular reader of my articles on ContrarianOutlook.com , you’ll recognize PGP, a PIMCO fund that mixes stocks and bonds to give investors the biggest dividend possible.… Read more