This 8.2% Dividend Is a Silent Income Killer
March 21, 2019 at 06:00 AM EDT
Today I’ll show you how I helped investors sidestep a “silent” payout cut in a popular closed-end fund (CEF) . We’ll also look at how to approach this fan fave today—and how this tale can help us keep our nest eggs (and income!) safe. Calling Out the Cool Kid I’m talking about the PIMCO Dynamic Income Fund (PDI), which I flagged nearly two years ago, when it was at the height of its fame thanks to its outsized 9% dividend yield. Even though first-level investors couldn’t get enough of PDI, I fired off a warning flare, writing that its massive 8.4% premium to net asset value (NAV, or the value of the corporate and government bonds and mortgage-backed securities it held) was under threat.… Read more
