PHK - PHK: I Am Not Convinced Of This Fund's Value Proposition
2024-02-06 03:29:18 ET
Summary
- PIMCO High Income Fund offers high yields but has a history of shrinking distributions year after year.
- Even reinvesting dividends doesn't seem to catch up with distribution cuts (after 2016) even if you ignore inflation.
- It's hard to rely on this fund for sustainable income for retirees who depend on it for their living expenses.
PIMCO High Income Fund ( PHK ) is a CEF by one of the largest asset managers in the world and it often attracts a lot of attention from income focused investors that are generally seeking high yields in order to boost their income. The fund has been around for 20 years and it offered mixed results throughout its existence and I am not convinced that it offers a lot of value for most investors in its current shape and form....
PHK: I Am Not Convinced Of This Fund's Value Proposition