Why XYLD over JEPI or SPYI? Longer history?
What did you trade today and why?
- Thread starter YellowSubmarine
- Start date
dobig
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I don't care what the investment is, I'd take that every single time.
surprising
Full time employment: Posting here.
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- Feb 7, 2023
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- 899
Sold the last of my FSCO on today's bump. Good riddance! Major loss, having bought in the 7s, but you can't win 'em all.
dickoncapecod
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So you WANT to re-enter the pain amplifier??!!
Regards, Dick
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I prefer to call it the Door to Hell.
FlyingCircus
Recycles dryer sheets
Didn't realize PFN's price had dropped that quickly recently, much better risk-adjusted buy. The 2 mth NAV drop of 20c raises an eyebrow, but only .5% more than PHK's so, whatever I suppose.
dickoncapecod
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Hi. Just my thinking: RELATIVE prices/yields of these similars in the PIMCO suite are mostly just driven by investors' actions, buying and selling for any number of reasons. So if some investor SELLS a lot of (say) PFN -- maybe it's the only CEF they own, or they're buying a house, or they read a negative article about PFN or PIMCO or all CEFs --- but other investors believe SELLERS (not buyers!) have some special knowledge and often join them. So out of this random mixmaster of prices moving in all different directions, different values for very similar portfolios arise ---- and they can be exploited if one is interested.
FWIW, Dick
Semi-Retyrd
Recycles dryer sheets
Seems like you're working on your eagle scout day-trading badge
@dickoncapecod
What's your view on spreading the assets out among the PIMCO CEFs vs concentrating on PDI.
Top-down management views and mandates are similar (with exceptions), and they generally move in synch (with exceptions, as noted).
PDI steadily trades at a higher yield and has higher daily trading volume and tighter spreads than some of the sibs.
What's your view on spreading the assets out among the PIMCO CEFs vs concentrating on PDI.
Top-down management views and mandates are similar (with exceptions), and they generally move in synch (with exceptions, as noted).
PDI steadily trades at a higher yield and has higher daily trading volume and tighter spreads than some of the sibs.
dickoncapecod
Thinks s/he gets paid by the post
Hi. PDI is always my largest position. When fully invested often 35-38%. The rest I fill in based on yields, discounts, and charting technicals created by other investors. "Intellectually" (LOL) there's no reason not to go 100% PDI, but we are emotional creatures, and 100% just "feels" unwise. Mom's all eggs in one basket admonition echoes in my head...
Regards, Dick
Budswhizzer
Recycles dryer sheets
Hi, I was wondering if there are any Pimco investors here that play the other side when a fund goes ex/rec. What I mean by this is, is it a good idea to buy after the ex/rec date to pick up on the earned back distribution? It seems like another way to earn more than just the dividend. The last few months certainly was not the time to do something like this. But, once the NAVs and MACDs improve, would this be a good move or not? What are your thoughts on this?
Thanks,
Todd
Thanks,
Todd
dickoncapecod
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@keppelbay
More....this is not cynical or insulting to retail investors (not excluding me), but rather an observation based on 18 years of watching bondish CEF stuff....
PDI is the largest and most liquid bondish CEF around --- features that would typically increase relative prices and lower yields. However, there is a herd of popular analysts who draw readers / attract eyeballs with articles that characterize CEFs, PIMCO products, and PDI in particular as hand grenades rather than just bond portfolios. So many retail investors have been "trained" to live in fear of their CEF investments ---- if they own any at all. Further, they react to market price declines in bondish CEFs very differently from LARGER declines in equity prices. Stocks down 5% or 10%? Sure, that's just markets for ya --- buy tne dip! Great opportunity! But PDI down 2% or 3%? It could go to zero! Get me out! And these predispositions can clearly result in negative self-fulfilling investment results.
I can't think of any other reasons why PDI often trades at yields 3% higher than it's smaller and less liquid cousins. And more self-fulfilling results trained into retail investors: higher yields are DANGEROUS, not an opportunity!
End rant, Dick
More....this is not cynical or insulting to retail investors (not excluding me), but rather an observation based on 18 years of watching bondish CEF stuff....
PDI is the largest and most liquid bondish CEF around --- features that would typically increase relative prices and lower yields. However, there is a herd of popular analysts who draw readers / attract eyeballs with articles that characterize CEFs, PIMCO products, and PDI in particular as hand grenades rather than just bond portfolios. So many retail investors have been "trained" to live in fear of their CEF investments ---- if they own any at all. Further, they react to market price declines in bondish CEFs very differently from LARGER declines in equity prices. Stocks down 5% or 10%? Sure, that's just markets for ya --- buy tne dip! Great opportunity! But PDI down 2% or 3%? It could go to zero! Get me out! And these predispositions can clearly result in negative self-fulfilling investment results.
I can't think of any other reasons why PDI often trades at yields 3% higher than it's smaller and less liquid cousins. And more self-fulfilling results trained into retail investors: higher yields are DANGEROUS, not an opportunity!
End rant, Dick
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dickoncapecod
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Hi Todd....IMO the decision is driven by folks' preferences between "taking" income versus cap gains.
Regards, Dick
dobig
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Sold rest of my NVDA. Worked out for me but too close to retirement to keep taking chances with individual stocks.
Bought FDVV, DGRO, DTD, DLN, CGDV for income. Added to QTUM for long term spec.
Bought FDVV, DGRO, DTD, DLN, CGDV for income. Added to QTUM for long term spec.
junkanoo
Recycles dryer sheets
Not just retail, but income-centric retail. Observing the gap between price and NAV in PDI is almost comical ...
Flieger
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Put in a limit order for (additional) PDI prior to Ex-Div. This will put me way over my original 5% cap for any one fund, but I have been evaluating/questioning that strategy. Still, if PDI bounces back post Ex-Div I will likely go back, at least a little.
Flieger
Order hit. New Portfolio Holdings
Flieger
Order hit. New Portfolio Holdings
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Randy145
Recycles dryer sheets
This topic goes beyond PIMCO and would be a good one for a new thread by itself. The declines/opportunities on ex-dividend date is usually more than the dividend itself (fast money players out there) and, often times, more follow-through the next day(s). It's not just about cap gains, it's an opportunity to own more shares at a lower price, which equals more $$$ in divis the following month. Of course, that requires some patience which is a bit of a scarce commodity it seems.
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
In reality the ex dividend price is market driven. I’ve seen assets bounce on ex days and decline on ex days. This topic has been discussed before on here. Someone said if it was so predictable an etf or fund would market itself towards this strategy and so far no good examples have surfaced.
OP
OP
YellowSubmarine
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+ BRK/B add big to small position in Roth. Roth is out of cash. Holding cash and noting BRK is hording cash, I will leaving the decision of buying/timing equities to a money machine. I've owned this stock before with only mediocre results. I just seen Value Line includes it in their LT Price Growth potential. I shared similar convictions.
Randy145
Recycles dryer sheets
Ex-dividend price is previous closing price minus dividend, +/- whatever the market for the given security (or general market) is doing (supply/demand thing), especially one that has a finite amount of shares, like a CEF or common stock. There's a few times when a hot security is up on ex-date but waaay more times it is down...I'd take that bet anyday. Like I said before, this would be a good topic for its own thread.
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dickoncapecod
Thinks s/he gets paid by the post
I'm not sure which direction you're coming from, but the reason for the premium is obvious: the distribution yield on NAV is 16.1% ---- and nobody is going to let you have that yield at NAV --- so investors are willing to pay a variable premium for PDI. IF IF IF it had a distribution yield like similars PFN PDO DSL, etc --- about 11.9% on average, PDI's market price would be 22.25, making its premium 35%.
Regards, Dick
junkanoo
Recycles dryer sheets
I'll be more specific. I put the chart up to show how little variation there has been in NAV over the last year and how wide the variation on price has been. All of this was accomplished when the dividend has been constant for the full 12 months.
Budswhizzer
Recycles dryer sheets
I sold slices purchased at the beginning of the week of PDI, PHK, PFN, and PAXS. These made the dividend amount they would have provided in April and then some. I'm just not comfortable with current NAVs and MACDs, and the amount of selling. Back to 48% cash. I will add to existing positions in at a lower/higher price once these look better.
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
The scary part in what you point out is that the dividend HAS been consistent. Look at the NAV though.
Rhythm Method
Recycles dryer sheets
I want to like and dislike this post! @dickoncapecod - thoughts?The scary part in what you point out is that the dividend HAS been consistent. Look at the NAV though.
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