I have PDI and PTY from Pimco. My costs basis is $18.25 for this cef. I get $100 1st day of every month from both funds. I stopped buying PDI once it paid me $1200 every year, and just continue to hold it.
PDI is a blessing from a monthly income standpoint. The stock price / growth is not the focus with PDI. Steady income is. Those looking for growth should avoid this stock although with falling interest rates it will more than likely increase in price.
Hi, A 13.5% premium and 38.6% leverage with PDI is a hard pass for me. People criticize the ELNs in JEPI/JEPQ for being opaque. This fund is a black box. Thanks for the video though. p.s. I nibbled on the funds from your last video recommendation from KURV.
Thanks for your feedback. PDI isn't for everybody. So far the ELN's have been performing so no criticism from me. You're earlier than me on KURV but I'll be watching their performance, especially when the blended ETF comes out.
Excellent video as always. PIMCO a few years ago could do no wrong, it seemed every PIMCO bond fund was going up more than the competition. Then they seemed to lose the magic. Was the great results (& bad results) due to very high leverage? PDI's Price only return is a MINUS -37% for the last 5 years! The 5 year annualized TOTAL Return, including distributions, is a very low 3%. With the Fed. Reserve lowering rates in the next few months, it is time to add bonds but think there are better options out there. PDI Price is already up 25% in the last year in anticipation of rates dropping, so most of the Price gain may be already Priced in. Your comment about the NAV going down while the Price went up, was right on target.
Thanks for your detailed thoughts on Pimco; I agree. It's not one to buy and hold forever because it doesn't do well during rising rate periods or during a massive economic crash. Hopefully we're entering a period of "normality" when it can just do its thing and pay a decent yield without eroding the NAV.
Thanks, as always, for a well-researched, well-reasoned video. I hold PDI (fortunately at a modest discount to NAV when I bought it), and freely admit that it is a regular source of vacillation for me. Like you, it isn't a prominent player in my portfolio so I'm not losing sleep, but I often find myself pausing on PDI when reviewing my investments. I'm not planning on selling, but will watch the Return of Capital and the Yield on Cost for unpleasant trends. If there's any management company that can weather the interest rate storm, it's PIMCO. Not that I'm advocating blind brand allegiance, but they've been around long enough to have experience in a wide range of market/economic conditions. P.S. I like the new theme song.
Been looking at PDI for some time but never pulled the trigger. The leverage is obviously high; the yield is good; the history is rock solid. Should be OK for about a 1-2% trial run. The diversity is frightening.... It is a real Black-Box though... Wish I had a crystal ball that would tell me when/if interest rates would come down a bit. Oh well... Never a dull moment..
the yield is good but this nav still have not recover to inception, i'm not feeling too comfortable with this that... so if i use 4-5% dividend to reinvest, that means actual dividend get in your pocket is only about 8-9%
@@armchairincomechannel oh, i am happy with 8-9% yield, i think the problem i have is im not too happy with this company. lol i have my own doubt about it... lol
HIlarious ending - thanks! I think I prefer QQQI with a slightly higher dividend and a much safer investment. Once I hit my share count goal I will look at this one again :) Thanks for an excellent video again.
Thx. Yep. Own it. Appreciate the reply very much. Keep doing your thing. You’re among the best RU-vidrs out there for retirees. (And I own a biz, have MBA and engineering degree. So not BSing).
Will you make a video talking about PCN? I am curious is there any ROC(return of capital). The current price is juicy to me and the CEF keeps no dividend cut or lower dividend. I am betting the CEF price grows while federal rate reducing. So that I can earn the price different and the dividend.
Love ur vids. I’ve been looking for a fund that is essentially SPY, but pays a distribution of around 5% in return of capital to help with taxes. I’m currently working, so buying income funds in my brokerage kills me in taxes. Any ideas?
Hello, good vid. Wanted to mention an ETF fund to you. Symbol INCO by Columbia funds. It seems to have excellent growth with ok dividends. Understand your general focus is current income, but this one seems to offer excellent prospects in India-centric investing. Growing ties with the west bode well for India's contin ued modernization and related investment returns. Thx for all of your content..
Hi. Thanks for your feedback and suggestion about INCO. I agree that India offers a lot of economic opportunity over the medium to long term but I'm looking for consistent income. That fund is more of a growth play and the income is volatile. Glad you like the content :)
Hi Armchair, just an FYI. I used your Snowball link and did purchase an annual subscription but Snowball actually sent an offer for 20% off the 1st year vs your 10%. Seems like you may not be getting the affiliate kickback that you should?
No problemo. Thanks for your concern and feedback. They have their own market offers they send out sometimes. I hope you were able to take advantage of the extra discount. I do have an affiliate relationship with them and they've great to deal with so no concerns.
Another great video. I hold a few I bought when it declined, somewhat because I was unaware of its "black box" problem. Since I am up, and I like the regular income, I am holding. I am not sure I would want to buy too much. But, a little spice on top of your cooking is generally nice!
Welcome to Armchair Insider :) As for taxes, US tax residents pay taxes in the following year. Non US tax residents have taxes withheld at rates that mostly range between 15 to 30% depending on the tax treaty of their tax residency.
I'm an income investor so I don't follow growth stocks specifically. That fund is entirely dependent on the price performance of Block (Ticker SQ) so I would need to be an expert on that company to invest in that fund. I don't hold any Yieldmax funds.
I agree, the yield is high. It's higher than the historical average and it won't stay that high forever. Yields in general are higher at the moment because interest rates are higher. A lot of PDI's assets are corporate loans and they're paying high interest rates, then PDI uses leverage to further boost that income. Whether or not they can support it is a matter of looking at the assets in the portfolio and whether they're producing enough income, along with the effect of the 38% leverage. Anytime you see 13%, you should do a lot of checking!
Thanks for sharing your thoughts. AI might be used to find "questionable" expense patterns for tax returns. But it might also help people file their own taxes instead of paying an accountant simply because the tax code is unnecessarily complicated.
I don't usually look at crypto much but looked at MAXI. It's really new and the div. history looks strange (at least to me.) That spike might might be normal though. I'll give it a little more time.
This is likely one investment I will pass on. I typically won't take a position in a closed end fund if it's trading at a premium to NAV. I prefer to catch these when they are priced at the NAV or at a discount to NAV.
@@armchairincomechannel Pimco has several funds that dropped a bunch in 2008, 2020 and never recovered and or drop 3 to 4% every year that pay huge yields, many people love to play the drip buy at a discount game that’s too much headache and risk for me.
Hi. I tried Snowball but the auto sync to my brokerages was too messy and never matched. Could you do a quick video of how you update manually? What’s your schedule? Do you have any templates or how you massage the download from the brokerages? Cheers
Hi. I haven't tried the autosync but I know many viewers have had success with it. Of course every brokerage is different so some might be challenging when using that feature. If you haven't tried contacting customer support, it's worth a shot. I've found them to be quite responsive. I prefer to enter data manually. At the beginning it took a while but now it's part of my habit. If I buy or sell something, I immediately make the change on Snowball, it only takes a few seconds. I like the additional accountability. For example if at some point the Snowball numbers and my brokerage numbers don't match, it's a signal for me to check and make sure I actually received the income I was supposed to.
Thank you for the quick reply. My recollection is for dividend tracking you need to enter the dividend transaction to cash then a buy transaction for reinvesting? And as I write this I remember that you don’t auto reinvest 😂 …. But you must have to enter every dividend? Anyhoo would still love a video walkthrough.
