Looking for income

[fireorbust]

Dividends change monthly.

Dividend History Dividend History Additional Information
Date Per Share Amount Reinvestment Price
11/29/19 $0.0705 $17.95
10/31/19 $0.0705 $17.94
9/30/19 $0.0705 $17.97
8/30/19 $0.0705 $18.14
Distribution Schedule: Monthly

Hmmmm...

 

[fireorbust]

I'll jump out of this thread. I do my own research on the funds / stocks I own. I hate to hijack someone else's thread who needs some good ideas on where to invest.

Investing is a personal thing and one size does not fit all. Some want income, some want safety others are just rolling the dice. I'm all 3..

Can't wait till we can buy 8% CDs.

 

[pb4uski]

According to Nuveen, distribution yield at NAV is 4.91%, which aligns with fireorbust's 4.7%.

However, SEC yield is 3.93%.... meaning that over time the distributions will decline further.... towards 3.93%.

Current distribution is 7.35c...........was 7.65c at the end of 2018... 8.0c at the end of 2015.... 8.55c at the end of 2012.... higher yielding older issues mature and are reinvested at today's lower rates, resulting in s slow and steady decline.

50% are unrated securities.

https://www.nuveen.com/mutual-funds/nuveen-high-yield-municipal-bond-fund?shareclass=I

 

[COcheesehead]

Dividend History Dividend History Additional Information
Date Per Share Amount Reinvestment Price
11/29/19 $0.0705 $17.95
10/31/19 $0.0705 $17.94
9/30/19 $0.0705 $17.97
8/30/19 $0.0705 $18.14
Distribution Schedule: Monthly

Hmmmm...

Do you really think every high yield bond they own, and they own a lot, 75% of the portfolio, they will be able to replace at the same yield? It’s called reinvestment risk and you just bought into it.

 

[triangle]

You might want to look at closed end bond funds. They are risky, but if held long term can provide reliable cash flow. Pimco is the king.
I own PFN, PTY and PCI - all yielding in the 9%-10% range paid monthly.

I have been looking into similar closed end funds and trying to understand their performance relative to each type of fund/debt and stocks. The yearly income is enticing but I am concerned about the performance over time.

https://finance.yahoo.com/quotes/PFN,PTY,PCI

For instance comparing PFN and PTY, the price of PFN is significantly down from 15 years ago, while PTY is slightly up. But PFN was a lot less volatile during last December 2018 selloff, while PTY was down more than the S&P 500 index. Since PFN is a floating rate fund that might explain why it has not recovered from 15 years ago, but I need to spend more time understanding why the price actions occurred.

 

[COcheesehead]

I have been looking into similar closed end funds and trying to understand their performance relative to each type of fund/debt and stocks. The yearly income is enticing but I am concerned about the performance over time.

https://finance.yahoo.com/quotes/PFN,PTY,PCI

For instance comparing PFN and PTY, the price of PFN is significantly down from 15 years ago, while PTY is slightly up. But PFN was a lot less volatile during last December 2018 selloff, while PTY was down more than the S&P 500 index. Since PFN is a floating rate fund that might explain why it has not recovered from 15 years ago, but I need to spend more time understanding why the price actions occurred.

Careful with just looking at NAV. These funds throw off regular and special dividends, this year included, that erode NAV values, but still give you nice income and better than typical bond total returns...in some, but not all cases. Some even have better returns than the S&P.

Pimco seems to have the magic sauce more than others.

CEF’s aren’t for everyone, but if you want reasonably predicable high income, they might be worth a look for a part of your fixed income bucket.

At another forum I frequent, some people use these and cash exclusively and have for years. That’s not for me, but I have about 10% of my fixed income in them. For every $1 in these, they will give you about 3X the yield of a typical bond fund.

 

[zekeboz]

You can buy PIMIX at Vanguard for $25K vs the $100K minimum required elsewhere.

ETA - looks like ER is currently 1.05%. Crazy high for an "Institutional" class fund, but I own it as well as it's tough to beat the yield, TR and long term consistency.

Own it as well. One of my favorite charts, even though historic returns do not predict the future... It is what sold me to add to my portfolio a few years ago.

https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2019&lastMonth=12&calendarAligned=true&initialAmount=50000&annualOperation=1&annualAdjustment=100&inflationAdjusted=true&annualPercentage=0.0&frequency=2&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&showYield=false&reinvestDividends=true&benchmark=VFINX&symbol1=PIMIX&allocation1_1=100&symbol2=VBTIX&allocation2_2=100