Is PDI dividend sustainable?
PDI uses a variety of credit investments to produce that outsized income stream. Thanks to high interest rates that look set to stay high for some time, and thanks to a sudden drop in the fund's valuation, that income stream is sustainable.
Conclusion: Assessing PDI's Dividend Prospects
In conclusion, while PIMCO Dynamic Income Fund offers an attractive dividend yield, the low growth and profitability ranks, combined with a potentially concerning payout ratio, suggest that investors should proceed with caution.
PIMCO Dynamic Income Fund holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.
According to our current PDI stock forecast, the value of PIMCO Dynamic Income Fund shares will drop by -1.03% and reach $ 18.81 per share by March 22, 2024. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 39 (Fear).
The PDI closed-end fund's price has dropped due to fear over-leverage and the surge in interest rates, presenting a buying opportunity.
| Stock | Dividend yield |
|---|---|
| Verizon Communications Inc. (VZ) | 6.7% |
| Mid-America Apartment Communities Inc. (MAA) | 4.5% |
| Grupo Aeroportuario del Pacifico SAB de CV (PAC) | 5.7% |
| United Micro Electronics (UMC) | 7.0% |
- PepsiCo PEP.
- Altria Group MO.
- Bristol-Myers Squibb BMY.
- Medtronic MDT.
- Gilead Sciences GILD.
- Pioneer Natural Resources PXD.
- Duke Energy DUK.
- Lockheed Martin LMT.
In the current month, PDI has received 3 Buy Ratings, 0 Hold Ratings, and 0 Sell Ratings.
Invesco Semiconductors ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PSI is an excellent option for investors seeking exposure to the Technology ETFs segment of the market.
PDI is positioned to take advantage of dislocations in multiple markets, spreading risk across sectors, regions, and asset classes. The fund's use of leverage, currently at 40%, looks to be profitable as their cost of carry is low compared to the high yields of emerging market and non-investment grade bonds.
How often does PDI pay dividends?
Dividend Summary
The previous PIMCO Dynamic Income Fund dividend was 22.05c and it went ex 1 month ago and it was paid 19 days ago. There are typically 12 dividends per year (excluding specials), and the dividend cover is approximately 1.2.
The fund's investment universe includes mortgage-backed securities, investment grade and high yield corporates, developed and emerging markets corporate and sovereign bonds, other income-producing securities and related derivative instruments.
PIMCO RAE US Small Fund PMJAX, PIMCO Low Duration Income Fund PFIAX and PIMCO Dividend and Income Fund PQIZX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future.
Overall Rating. Morningstar has awarded this fund 4 stars based on its risk-adjusted performance compared to the 321 funds within its Morningstar Category.
PDI had been collecting excess income through a strong portfolio that benefited from lower rates at a time when those same lower rates scared investors out of the bond market. This helped PDI provide an income stream 800% larger than the S&P 500 in its first years, while beating the S&P 500 on a total-return basis.
According to analysts, JEPI is a good investment for investors who want to reduce the volatility of their portfolio without compromising returns. An ETF like JEPI, in moderate amounts, can be a good choice for sophisticated investors, retirees, and those following the FIRE movement.
| Stock | Forward dividend yield |
|---|---|
| Johnson & Johnson (JNJ) | 3% |
| Procter & Gamble Co. (PG) | 2.3% |
| Home Depot Inc. (HD) | 2.4% |
| Merck & Co. Inc. (MRK) | 2.5% |
| COMPANY | SECTOR | DIVIDEND YIELD |
|---|---|---|
| Bristol-Myers Squibb Co. (BMY) | Health care | 4.74% |
| Cisco Systems Inc. (CSCO) | Technology | 3.15% |
| Comcast Corp. (CMCSA) | Communication services | 2.91% |
| Skyworks Solutions (SWKS) | Technology | 2.59% |
| Company | Dividend Yield |
|---|---|
| Altria Group Inc. (MO) | 8.94% |
| Washington Trust Bancorp, Inc. (WASH) | 8.54% |
| Alexander's Inc. (ALX) | 8.33% |
| Sinclair Inc (SBGI) | 8.32% |
The four stocks on the NYSE or Nasdaq with the highest forward dividend yield that also trade for $25 or less as of March 2024 include Petrobras, Jiayin Group, Great Elm Capital Corp., and Angel Oak Mortgage REIT.
Who is the best dividend investor of all time?
Warren Buffett is widely considered the greatest investor of all time, and much of his investment strategy relies on collecting dividend payments.
Dividend Data
The Coca-Cola Company's ( KO ) dividend yield is 3.23%, which means that for every $100 invested in the company's stock, investors would receive $3.23 in dividends per year. The Coca-Cola Company's payout ratio is 74.22% which means that 74.22% of the company's earnings are paid out as dividends.
PDI is a privately held, third generation, family-owned company and is therefore, not publicly traded. For more information on the history of PDI, please visit the “About” section of the website.
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