PDI - PDI Is Not A Buy Here's Why
2024-06-03 11:45:22 ET
Summary
- PIMCO Dynamic Income Fund has seen a significant run-up since October 2023, but the upside from here is limited.
- It may be prudent to sell some and repurchase on the next decline, as shares are unlikely to appreciate greatly.
- The PDI closed-end fund is a strong income powerhouse in the long term, but buying at current levels may not be ideal.
- The impact of rate cuts is unclear, but trade around the NAV.
- Underwater investors on paper can make that up with the bountiful monthly paychecks, but it is still wise to be more active in your holdings.
PIMCO Dynamic Income Fund ( PDI ) is a name that we called for a buy in October 2023, essentially catching the yearly bottom. Recall that this is a closed-end mutual fund or CEF. PIMCO Dynamic Income fund, herein referred to as PDI in this column, seeks to provide investors in the fund with a high level of current income, but we saw the potential for capital appreciation. And since that call, we have enjoyed a sizable run-up....
PDI Is Not A Buy, Here's Why