PDI: 13.7% Yield Attractive, Despite Section 19 Notices

Many investors love PIMCO’s Dynamic Income Fund because of its strong track record of paying big monthly distributions. Whereas some others are traumatized by the dramatic share price volatility (mostly related to interest rates) in recent years. In this report, we review the fund, the distribution and price volatility sources, the section 19 notices (the distributions have been exceeding investment income and gains) and risks (misleading outside data sources, tax considerations, and the risk of a distribution “right sizing”). We conclude with our strong opinion on who might want to invest.