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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: When I asked about PDI back in July 2023, you stated you would be fine holding it for 3-9 months. I am still down about 20% on it. It is currently at/near the same price it was last July. I'm liking the high monthly dividend payment but am concerned how long it can last. Do you think the high dividend is sustainable (and if not how much would you expect it to be cut?). As well, looking into 2024 with interest rates likely dropping marginally, a soft/no landing scenario, and all other things considered for 2024, do you think this one can approach $22-$23 in 2024? Any other nuggets of wisdom regarding PDI are welcome .....
Read Answer Asked by Randy on January 08, 2024
Q: Over the last couple months I have increased the fixed income portion of my RSP, and would like to finish with a smallish position in a a high-yield bond ETF. Been looking at PDI and ZHY/XHY (they seem about the same). Some questions:

1) is the current PDI premium normal for this fund on a historical basis
2) the PDI dividend seems consistent, but how do they manage to maintain that level
3) PDI is more international than the others - do you see this as a positive or negative for high-yield corporate holdings
4) do you think it is too early to get into high-yield if interest rates keep going up or if we get into a "significant" recession
5) who do you consider to be the best manager of these 3 ETFs, and if you would buy , which is your pick and why
Thank-you Grant
Read Answer Asked by grant on February 06, 2023
Q: Both PIMCO Tactical Income Fund (9.6% Yield) and PIMCO Dynamic Income Fund (13% Yield), were mentioned on the weekend.

Their unit prices have dropped due to the rise in interest rates. I am retired and have very little exposure to fixed income. Would this be a reasonable investment to consider? One would expect if interest rates continue to rise, the units’ prices will continue to be adversely affected.

Thank you

Kim
Read Answer Asked by kim on November 16, 2022
Q: When you last commented on PDI you said "Okay with". Noting the one year return on fund value is minus 15% but the long term returns seem to be in the 8-10% range. I am in it for the dividend (I'm retired). Do you think the ~ 13% dividend is safe long term ? And how much of that 13% is ROC ? What are your overall thoughts on this one ??
Read Answer Asked by Randy on November 02, 2022
Q: I’d like to start a position in one or more income funds that offer a very high yield, but I’m not sure which ones to choose. As of Wednesday Oct 5th, these are the indicated yields I’ve found:

CLM 23.92%
PDBC 20.65%
SDIV 15.31%
QYLD 14.19%
RYLD 14.05%
XYLD 13.05%
BIGZ 11.01%
JEPI 10.94%
PDO 10.90%
PDI 10.79%
BXMT 10.38%
MPW 10.17%
STWD 9.84%
EIT.UN 9.42%
IDV 8.15%

Would you recommend any of these or do you have other suggestions? Are any of them too risky if the bear market deteriorates from here, or can they all be held long term? Are some of these yields too good to be true, like CLM and PDBC? Thanks for your thoughts.

Read Answer Asked by Brian on October 11, 2022
Q: Could I get your comments about buying PDI.UN in an RRSP? The price has come down substantially (as might be expected), it is trading near its NAV, and it appears to have never missed a dividend. I recognize the high fees, but the 12% yield has caught my attention. What do you think of its holdings (in general and how risky), do you think the dividend is sustainable under current conditions, and would you see the price moving back up a bit if rates don't go much lower? If buyable, would you buy now or wait a bit longer on rates.
Thank you
Read Answer Asked by grant on May 17, 2022
Q: HNY - Amid the confusion among predictions for 2022 is a recommendation from veteran income investor Mark Grant who says he's putting clients into ETF PDI from Pimco as a means of generating 10% income returns annually. I would be interested in having your analysis of this ETF including the risks, rewards, fees, etc. Obviously not in your growth wheelhouse but for an income position in US dollars what are your views on this one?
Read Answer Asked by Ken on January 04, 2022
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