PDI's 13.8% Yield: Despite Coverage Shortfall, CEF Worth Considering

2025-07-29 06:31:33 ET

Just like inflation is a hidden tax on your money, so is return of capital (“ROC”) on your big-yield closed-end fund (“CEF”). For example, PIMCO’s taxable CEFs are particularly impressive and attractive, just not as much so as many people seem to think considering not a single one actually covered its distribution over the last year (see table below). This report shares high-level data on PIMCO’s popular big-yield CEFs, with a special focus on the Dynamic Income Fund ( PDI ), and then draws a critical conclusion based on the risks and rewards....

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