Why I Still Believe In This 14% Yielding Monthly Dividend Fund

Date: 2025-06-23 21:01:00

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Over the years I’ve been continuing to invest in a closed-end fund that offers a significant monthly distribution, despite some uncertainties it’s facing. PDI, the PIMCO Dynamic Income Fund, is a fund that offers a lot of extremely attractive features for people seeking income like myself. It offers a yield that exceeds 14%, and again, it pays investors on a monthly basis. What’s also impressive is that it’s never gone through a dividend cut. In its 13-year history, PDI has continued to pay a consistent distribution, with no reductions and the occasional special dividend. This fund has also delivered a couple of increases in their monthly distributions. However, since 2021, this closed-end fund has been facing some challenges.

Its share price has struggled to recover to its pre-pandemic level, which was over $32 a share back in early 2020. Its dividend hasn’t been increased in nine years and hasn’t paid a special dividend since 2022. Most notably, however, is that its net asset value has struggled to regain its value, and it’s continued to slowly go down over the past few years. With PIMCO cutting dividends on two of their other funds earlier this year, people continue to monitor the performance of PDI and whether its dividend could be next on the chopping block. In this video we’ll take a look at the Dynamic Income Fund and try to determine its health and what it’ll take for this investment to start flourishing again.

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