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In the long run a closed-end fund can't trade at a 53% premium to the assets it holds, but people see an 11% yield in a ZIRP environment and can't help but buy, regardless of the premium they're paying.
The PIMCO High Income closed end fund is currently price at over 65% above the fair market value of the assets owned by the fund. That's a hefty premium to pay for fixed income investments.
Bill Gross runs the fund. Need I say more?
Great consistent dividend!
PHKstarted in 2003,Have owned it ever since and it has never ever failed to not pay a dividend! Secondly,in our last crisis of 08 PHK did miss two div. pymnts but a month after paid every penny missed in a lump sum the following month.This is a great div. play in my opinion ,no dought at all. giacomo
junk bonds will perform better in an improving economy (despite a 2nd half slowdown)
pays good dividend and low p/e.
A fund trading at an absurd premium to asset value because it pays a giant dividend and rates are low elsewhere. Eventually it will sell for what it is worth.
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This premium over NAV is unsustainable with continued distributions.
Invoking the 200% coverage requirement of preferred shares before paying common stock dividend, from the [U.S. law] Investment Act of 1940 AGAIN?!? [The prior time was Nov. 2008/Dec. 2008.]This is sloppy; not one of the other hyperdividend stocks I track resorts to this. The point of a monthly dividend declaration is that it gives you room to adjust dividends month-by-month to maintain a buffer against "implausible" losses. If the policy gets in the way of this, revise the policy.Yes, I know that the dividend ($0.121875/share) hasn't been officially deferred yet. The problem is that management is having to eat their words again.
Wow, I little mention in Barron's and suddenly it's a 50% premium to NAV? Thanks but no thanks Bill...
solid monthly dividend play plus 2 - 3 times upside potential.....
The greed of many people will force them to buy this stoick when the dividend is 30% and better. The pay off in the next 2 to 5 years is going to be outstanding. Not only will the stock eventually double, or more, but holding on means sharp dividends that will be impossible to beat in coming years.
strong managemant. they have taken an undeserved beating. Get ready to make 30% in a year.
When you factor in the compounding, this stock has greater than 15% dividend payout at this price point. That doesn't include the extra 9% dividend surprise they kicked in at the end of the year for '07 (and CAPS still doesn't reflect this in the scoring). I think it may also see some modest gains in price.
Buy more. At a fixed $.12188 per share per month return, the percentage rate of return is phenomenal.
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