If you like big steady income (to offset the short-term uncertainty of long-term stock-market investments), closed-end funds (“CEFs”) currently offer a widely-diverse set (ranging from varied stock and bond strategies) of big-yield opportunities (9%+ yields, often paid monthly) to choose from (ranging from those benefiting from market over-reactions to Fed interest rate signaling as well as otherwise-steady utility sector opportunities being whipsawed by AI’s startling demand for energy). This report shares 10 top big-yield opportunities (including a variety of relevant quantitative data and important qualitative commentary) and dives a bit deeper into one contrarian PIMCO bond CEF that is particularly compelling right now. Enjoy!
High Income Portfolio: New Risks, New Opportunities
This report shares recent data on all 25 positions in the 9.8% aggregate yield “High Income Portfolio,” and highlights notable risks and investment opportunities as you manage your own income-focused portfolio. Notably, we’ve seen some share price movements (as the market continues to digest tariffs, interest rate dynamics and the ebbs and flows between value and growth) that are worth considering as you manage your own investments.
PDI’s 13.8% Yield: Despite Coverage Shortfall, Shares Worth Considering
Just like inflation is a hidden tax on your money, so is return of capital (“ROC”) on your big-yield closed-end fund (“CEF”). For example, PIMCO’s CEFs are particularly impressive and attractive, just not as much so as many people seem to think considering not a single one actually covered its distribution over the last year (see table below). This report shares high-level data on PIMCO’s popular big-yield CEFs, with a special focus on the Dynamic Income Fund (PDI), and then draws a critical conclusion based on the risks and rewards.
PIMCO Big-Yield CEFs, Ranked (Distribution Coverage Edition)
If you are an income-focused investor, you have a lot of opportunities to chose from (as we recently wrote about here). But if you are focused on the “big yield” space, you have a lot to choose from too, and PIMCO is the perennial leader in this space when it comes to bond-focused Closed-End Funds (or CEFs). Here is a look at recent current yields, and distribution coverage ratios, followed by a discussion (and ranking) of these 11 big-yield opportunities (including popular tickers like PDI, PDO, PTY, PAXS, PTY and more). Enjoy!
PDO: 10 Big-Yield PIMCO CEFs, Compared
If you like your investments to pay big monthly income, PIMCO is the bond fund industry leader, with lots of double-digit yields to choose from. This report compares data on 10 taxable PIMCO closed-end funds (CEFs), and explains why the Dynamic Income Opportunities Fund (PDO) is particularly attractive right now.
Members Mailbag: PAXS and ROC
Members Mailbag (Quick Note): If you are familiar with PIMCO Bond Funds, you know (1) they are popular for providing big monthly income payements to investors, but (2) Few people actually want to know “How the sausage is made.” Here is a quick question from a member about “Return of Capital” (“ROC”) on PIMCO’s 11.5% yield PAXS, followed by a reply from me. Hopefully, it’s a helpful piece of info for you to “stir into the pot” as you manage your investments.
Forget High Growth: Top 10 Big Yields Worth Considering (August Edition)
There comes a time in every investor’s life when they realize chasing high growth stocks makes absolutely no sense whatsoever. Sure, if you’re 25 and want to roll the dice (on “the next big thing”) go for it. But if you’ve built a nest egg, and you just want your investments to produce big steady income, this report is for you. We countdown our top 10 big yield investments (including REITs, BDCs, CEFs and more) with a special focus on why each opportunity is uniquely attractive right now.
Top 10 Big-Yields: REITS, BDCs, CEFs (July Update)
Concentration can help you get rich, but diversification helps you stay rich. And if you own 25 different flavors of big-yield mortgage REITs—you’re still not exactly “well diversified.” In this report, we countdown our to 10 big-yield opportunities, with a special focus on diversifying your risks (across different investment types) while simultaneously keeping your income high.
PIMCO Big-Yield Bond Funds (PAXS, PDI, PDO, PTY): Distributions > NII
PIMCO’s big-yield bond funds are often an income-investor favorite because of their large 9% to 13% yields. Some investors have been traumatized in recent years as prices fell hard (when the fed rapidly hiked interest rates) while other investors haven’t cared as long as the big monthly income payments kept rolling in. This article provides an update on PIMCO bond funds now, and my opinion on which may (or may not) be worth considering for investment, mainly in light of how PIMCO is sourcing the distribution payments to investors.
Market Overheating? High-Income Strategies Worth Considering
The market continues to climb a wall of worry, and some investors believe it’s getting a bit ahead of itself. For example, the S&P 500 is up +6.9% this year and up +27.4% over the last 12 months, but we keep hearing stories about a sputtering economy. If you are concerned the market is ahead of itself, and we may be due for a healthy pullback, here are 3 high-income investment opportunities for you to consider.
PIMCO Bond CEFs: A Big Price Rally is Coming
With real interest rates finally turning positive (inflation has slowed) and fed rate hikes arguably over, there could be incentive for investors to move out of equities (i.e. putting selling pressure on stocks) and into fixed income. One area that may benefit significantly is bond Closed-End Funds. In particular, many bond CEFs currently trade at unusually low market prices as compared to their net asset values (as evidenced by the many very negative z-scores across the space).
Attractive 11.7% Yield Monthly-Pay Bond CEF
If you are seeking big steady income, from a top-shelf manager, that currently trades at a discount to NAV, and may be set for dramatic price appreciation heading into the end of 2023 (as fed rate hikes peak and then are expected to reverse), the 11.7% annual yield (monthly pay) closed-end fund (“CEF”) we review in this report is worth considering.
Bond CEFs: Prices, Premiums and Interest Rates
A quick note to share some updated data and commentary on a handful of popular big-yield bond CEFs from PIMCO and BlackRock. This note may be of particular interest to those following our High Income NOW portfolio. For starters, here is a look at the latest movement in premiums and discounts (versus NAV).