May. 14 at 5:34 PM
$PDI If you are a shareholder and the drop this week surprises you, then you don't understand what you own and the factors that influence the NAV and share price. I sold a small chunk (1,100 shares) at
$17.41 on April 1, and now I'm buying them back in the
$16.90-
$16.99 range today/tomorrow. Unless I'm wrong, Pimco has never cut the distribution in the long history of this fund. So, a buy under
$17.00 for a 15.6% annualized distribution yield with limited downside risk on the NAV is a good decision for a long-term hold. Shares will remain under pressure (
$16.00-
$18.00) for the remainder of 2026 with the risk of bond yields exceeding critical thresholds (4.5% on the 10-year/5.0% on the 30-year) and a higher likelihood of a Fed Funds rate increase than a cut over the next 10 months. I'm still in accumulation mode for the next 3 1/2 years, so don't mind a long-term
$16.50-
$17.25 range at all with a 5% DRIP discount on top of that.
